Home buyers don't need to do any research to find out how expensive a home is.
But a new report highlights that home prices have risen dramatically over the past decade, especially in Dallas.
Construction Coverage researchers report that Dallas ranks third in the nation among large cities with the highest home price increases over the past decade, with an increase of a whopping 175%. The researchers used data from real estate site Zillow for their analysis.
Over the past decade, only Detroit and Tampa had higher rates of home price inflation. During this period, prices nationwide almost doubled.
According to Construction Coverage, the median home price in Dallas has increased from just $111,598 in 2013 to $306,877. Median prices across the metro area total nearly $100,000 higher, including costs in emerging suburban growth communities.
“While the real estate market appears to be finally calming down, rising home prices continue to define economic trends in recent years,” Construction Coverage researcher Jonathan Jones said in the report. “Over the past decade, including the recovery from both the Great Recession and the COVID-19 recession, U.S. home values have increased by more than 100%.
Housing costs in the Dallas-Fort Worth area fell between 1% and 2% last year, but remain near all-time highs.
“However, despite the recent decline in sales prices, the combination of continued inflation reducing purchasing power and mortgage rates above 7% offsets any potential relief for prospective homebuyers.” Jones said.
Some Dallas suburbs have seen even bigger increases in home prices over the past decade. According to Construction Coverage, prices rose about 180% in Mesquite and nearly 176% in Garland.
A sharp rise in mortgage rates has led to a decline in D-FW home sales, which were down 7% in October compared to the same month last year. The median sales price across North Texas was $398,000, down 1% from a year ago.
Demand for housing remains high as there is a shortage of homes for sale and thousands of people are moving to the Washington D-FW area.
