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Dallas-area home price gains continued to lose steam in the latest nationwide comparison.
Dallas home prices were up just 5.6 percent year-over-year in the new Standard & Poor’s/Case Shiller Home Price Index.
That’s less than the nationwide annual increase of 6.4 percent in May.
And it’s the lowest Dallas-area home price increase Case-Shiller has recorded in almost six years.
Dallas’ home price rise was less than half of gains in some booming Western markets.
Home prices in Seattle were up 13.6 percent from May 2017 and in Las Vegas prices were 12.6 percent higher than a year earlier.
"Home prices continue to rack up gains two to three times greater than the inflation rate," S&P’s David M. Blitzer said in the report. , Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices. "The year – over-year increases in the S&P CoreLogic Case-Shiller National Index have topped 5 percent every month since August 2016.
"Unlike the boom-bust period surrounding the financial crisis, price gains are consistent across the 20 cities tracked in the release."
But Blitzer said the run up in home prices in many U.S. metro areas is impacting sales.
"Affordability – a measure based on income, mortgage rates and home prices – has gotten consistently worse over the last 18 months," he said. "All these indicators suggest that the combination of rising home prices and rising mortgage rates are beginning to affect the housing market."
Dallas-area home prices are now at record levels in the Case-Shiller index and are 47 percent higher than they were before the Great Recession.
Case-Shiller’s index tracks over time the prices of specific single-family homes located in each metropolitan area. The index survey does not include condominiums and townhouses. It only covers preowned properties – not new construction.
After a long stretch of double-digit percentage home price gains, North Texas housing values are rising at a much slower pace this year.
Case-Shiller’s May annual increase for Dallas was the smallest since October 2012.
"The twin, deeply entrenched drivers of rapidly appreciating home prices over the past few years – very high demand from home buyers, and incredibly limited supply to meet it – aren’t changing and are unlikely to meaningfully subside in the near term," Zillow senior economist Aaron Terrazas said in a statement. "But there are some very faint, very preliminary, sometimes contradictory and maybe deceptive signals that the tide could slowly be beginning to turn.
"Home price growth is likely to slow somewhat going forward, but the truth is that little has changed for home buyers in the market today: Competition is fierce, prices are rising and selection is limited."