Tuesday, July 19, 2016

Buyers gobble up homes as prices escalate 9.3%

Home prices in Dallas-Fort Worth are continuing to escalate — rising 9.3 percent year-over-year in May — as buyers continue to gobble up houses.

North Texas is outpacing the rest of the nation by more than three full percentage points, with the national rate sitting at 5.9 percent year-over-year in May, according to CoreLogic Inc. (NYSE: CLGX) on Tuesday, which has a large hub in Dallas-Fort Worth.

Dallas-Fort Worth home prices continued to escalate in May,
according to CoreLogic.
CoreLogic's Home Price Forecast indicates the trend of increasing home prices will continue into next year, with prices expected to rise 5.3 percent by May 2017.

"It's amazing it continues to increase that much year-over-year, but the housing market continues to be tight even as there's more listings in the market," Ted Wilson, principal at Dallas-based Residential Strategies Inc., told the Dallas Business Journal.

"As quickly as it hits the market; it gets gobbled up," he added. "Home prices have climbed much higher and much quicker than it ever has in Dallas-Fort Worth, which has raised some eyebrows. But it's still an affordable market."

Wilson said he doesn't see demand, or home prices, slipping anytime soon. Inventories are expected to remain tight with little construction labor to go around in the region, he said.

Nationally, CoreLogic Chief Economist Frank Nothaft said the consistent growth in home prices has been driven by the highest resale activity in 9 years and a still tight housing inventory.

With mortgage rates being at record low levels, Wilson said this is masking some of the escalations in home costs. But sometimes that's not enough.

The rising costs are forcing some buyers to bring more cash to the table as lenders are unable to finance the full price of a home.

Written by Candace Carlisle/Dallas Business Journal