Dallas-Fort Worth home prices grew by the fastest rate in more than three years in the latest nationwide comparison.
But North Texas’ 8.5% third quarter annual price increase was still behind the 12% nationwide year-over-year home price rise, according to the National Association of Realtors.
Home prices in the third quarter rose at a double-digit percentage rate in 65% of the 181 metro areas the Realtors track in their quarterly survey.
“Favorable mortgage rates will continue to bring fresh buyers to the market,” Lawrence Yun, NAR chief economist, said in the latest report. “However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast.”
The greatest annual home price gains were in Bridgeport, Conn. (27.3%); Crestview, Fla. (27.1%) and Pittsfield, Mass. (26.9%).
The D-FW area had the smallest quarterly price increase among the major Texas metros.
Austin saw the largest price jump from third quarter 2019 – up 12.9%.
Prices were up 9.1% in the Houston area and rose by 9.4% in San Antonio.
D-FW home values have soared this year with the surge in property sales.
In October, North Texas home purchases were 25% higher than a year earlier and median sales prices rose by 12% from 2019 levels, according to data from the Real Estate Center at Texas A&M University.
“In light of the pandemic, prices jumped in a number of metros that contain larger properties and open space – where families could find extra rooms, including areas for an at-home office,” said Yun. “As home prices increase both too quickly and too significantly, first-time buyers will increasingly face difficulty in coming up with a down payment.”