That’s almost double the average annual home price gains in North Texas.
And a new report by the Federal Reserve Bank of Dallas says that the current strong housing market in Dallas and Houston may not be a short term event.
“Comparisons with cities having similar sensitivities of supply suggest that pricing in Dallas and Houston is not notably out of line with fundamentals,” researchers said in the Dallas Fed’s just released study of the regional housing market recovery.
“Even after Dallas house prices recently rose nearly 8 percent faster than inflation, the months’ supply for sale remained extremely low—at three months—suggesting that house prices could rise at an even faster rate if inventories remain so low,” Fed vice president John Duca said in the report.
Duca said that Dallas and Houston suffered less during the recession and have recovered more than other U.S. markets.
“The combination of modest price- to-rent ratios, low inventory ratios, high affordability and lower-than-average unemployment rates suggests that the housing recovery is sustainable and will continue for some time in Texas’ two largest cities,” he said.