Dallas-Fort Worth home prices rose nearly 3% in January 2024 compared to the previous year.
That's half of the national 6% increase, according to the latest S&P CoreLogic Case-Shiller Home Price NSA Index. But this is D-FW's largest annual home price increase ever, according to closely watched monthly housing market indicators.
Home prices continued to rise after bottoming out early last year. S&P's Brian D. Luke said in his report that the 6% national increase is the fastest annual rate since 2022.
Dallas (2.9%) had one of the smallest increases among the 20 major metros tracked by Case-Shiller: Only Denver (2.7%) and Portland, Ore. (0.9%) had lower annual price increases.
San Diego (11.2%) and Los Angeles (8.6%) reported the highest annual increases. The Case-Shiller Index is a three-month moving average that compares changes in sales prices for specific properties over time.
“For the second consecutive month, all cities reported annual price increases,” Luke said. “On a seasonally adjusted basis, home prices continue to hit record highs set last year.”
On a monthly basis, house prices continued to struggle in early 2024 in the face of rising borrowing costs. According to the index report, the price of D-FW decreased by 0.2% from December 2023 to January 2024.
Seventeen of the major markets fell. According to the index, only San Diego, Washington and Los Angeles had month-over-month increases.
Thelma Hepp, Chief Economist at CoreLogic, said: “While pressure from rising mortgage rates continues to push down prices, the monthly decline has slowed from the steep decline seen in the past two months, and we are looking forward to autumn 2023.'' “This reflects the improvement in interest rates since their peak.”
The Dallas-Fort Worth area is projected to be one of the nation's top housing markets in 2024, and other data suggests home prices in North Texas could be headed for an upward trend.
The median home sales price in D-FW in February 2024 was $390,000, according to data from the Metrotex Association of Realtors and the Texas Real Estate Research Center at Texas A&M University.
It increased by 2.4% from February 2023.
“Going forward, home prices will rise from the winter lows during the spring home buying season. However, given the difficulty in comparing with last spring's surge in home prices, the annual rate of increase is likely to slow.” Mr. Hepp said. “Still, annual growth remains strong and this year is likely to show a further 3% to 4% increase.”
