Housing Value Gains in Dallas Show Strong Market
Posted September 4th, 2012 | by The Update
The Dallas housing market continues to show strength.
Home Buying Institute: Home prices in the Dallas metro area have risen slightly over the last two reporting periods, according to the S&P/Case-Shiller Home Price Index.
The Index is a monthly report on house values that covers approximately 75% of the U.S. housing market. According to the latest report, released on August 28, Dallas home prices rose by 1.9% from April to May, and by 1.3% from May to June. The year-over-year numbers are even stronger.
According to the National Association of Realtors, median home prices in the Dallas/Forth Worth Metroplex rose by 7.6% from August 2011 to August of this year… The latest Beige Book report… noted that housing activity in the Dallas metro area “remained strong since the last report.” They also pointed out that home sales were well above expectations. This is based on interviews with local builders, Realtors, and other industry professionals.
Home builders reported high levels of traffic from potential buyers. Realtors said shrinking inventories were pushing home prices up, a trend that can be confirmed by the data provided earlier.
The chart below was created by the Real Estate Center at Texas A&M University. It uses data provided by the Federal Housing Finance Agency (FHFA). It also tells a pretty good story about the Dallas real estate market, spanning more than a decade. You can click the chart to enlarge it.
The green line in this chart represents U.S. home prices (as a composite) over the last several years. The blue line represents home prices in the Dallas metro area during the same period. When viewing this chart, two things become obvious:
- Dallas did not have much of a real estate bubble, when compared to the rest of the country.
- Home prices in Dallas did not fall nearly as far as they did nationally, during the housing crash.