Texas Home Prices Are Headed Higher
Austin is the hotspot when it comes to Texas home cost gains. Austin area home prices soared by more than 14% in March, topping the nationwide increase of 11.3%. Home prices across the country rose at the fastest rate since 2006, according to the latest report from CoreLogic.
Dallas-area prices were up about 10.7% from March 2020 levels.
“Lower-priced homes are in big demand and short supply, driving up prices faster compared to their more expensive counterparts,” Dr. Frank Nothaft, chief economist at CoreLogic, said in the just-released report. “First-time buyers seeking a starter home priced 25% or more below the local-area median saw prices jump 15.1% during the past year, compared with the overall 11.3% gain in our national index.”
Housing costs in most U.S. markets have been sharply rising since last summer when record low mortgage rates and a severe shortage of inventory caused prices to spike. The COVID-19 pandemic also unleashed a flood of new buyers seeking to ditch apartments for home ownership.
The Austin area has had some of the biggest home appreciation totals in the country.
In March, median home prices were also up by more than 18% in Phoenix and rose 14% in San Diego, according to CoreLogic.
Looking at the Texas metro areas, prices in Fort Worth are 10.7% higher year-over-year and 9.7% higher in the San Antonio area from a year earlier. Houston has lagged with a 6.7% annual rise. Home sales are up even with record prices in most markets.
“Despite the severe slowdown last year, the 2021 spring homebuying season is trending strong — reflecting the many positive signs of economic recovery,” said Frank Martell, president and CEO of CoreLogic. “With prospective buyers continuing to be motivated by historically low mortgage rates, we anticipate sustained demand in the summer and early fall...”
