Dallas Area Home Prices Rose Less Than National Average in July

Home prices are up slightly in Dallas-Fort Worth, but its appreciation rate is still below the national average.

Sales prices in DFW rose 0.3 percent from June to July, down from 0.7 percent one month prior, the Dallas Morning News reported, citing data from the S&P CoreLogic Case-Shiller home price index.

At the same time, nationwide home prices jumped 0.6 percent, hitting an all-time high. DFW home prices remained well below their peak, recorded in June 2022. North Texas has registered gains in six consecutive months. Prices in the region plunged last summer following the post-pandemic housing boom, but they’ve gradually increased throughout the year.

However, a separate report from the North Texas Real Estate Information Systems indicated that DFW home prices began to decline in August, with the median sale price dropping by 2 percent to $406,000.

Since early spring, month-to-month price increases have plateaued, largely because of the effect higher mortgage rates have had on affordability, Selma Hepp, Chief Economist at CoreLogic told the outlet.

Annual price appreciation will accelerate in the coming months before slowing down again, with areas in the Midwest registering the largest gains due to their relative affordability, Hepp predicted.

The Case-Shiller index, which tracks property sales-price changes over time, is considered a reliable indicator of market conditions, although it lags behind by a couple of months.

While DFW home prices fell by 1 percent year-over-year in July, national prices were up 1 percent from the previous year. DFW was the only Texas market included among the 20 markets tracked by the Case-Shiller index.

Despite rising home prices, North Texas remains a top relocation destination, ranking 8th on Redfin’s report of metro areas people considered moving to during the summer, with Los Angeles being the primary source of potential new residents. The ongoing mismatch between buyer demand and housing supply continues to drive upward pressure on home prices nationwide.

—Quinn Donoghue