Rising mortgage rates and lower demand have cooled off home price gains in Texas’ major markets, but prices in the Lone Star State’s five biggest markets still made double-digit gains, according to CoreLogic’s May Home Price Index report.
Leading the pack was the Dallas-Plano-Irving market with the average home price making a 26 percent year-over-year gain.
The average home value in the city of Dallas in March 2022 was $293,570 and the average price for a house in the city’s suburbs was $353,094.
Over the past year, home prices in the Austin-Round Rock market rose 25 percent. The median Austin home price came in at $550,000.
The Fort Worth-Arlington market’s average home price gained 22 percent from May 2021 to May 2022, while home prices in the San Antonio-New Braunfels market rose 20 percent during the same period.
Bringing up the rear was the Houston-The Woodlands-Sugarland market where the average home saw an 18 percent year-over-year gain.
In June, the Houston Association of Realtors reported that the city’s average home price hit $440,670, a 14 percent rise from last year, and the median price jumped 16 percent to $351,000.
CoreLogic expects U.S. home price growth to slow over the next year as mortgage rates increase and “affordability challenges” arise.
Elsewhere, Tampa, Florida, had the highest year-over-year home price increase out of all the country’s 20 largest metro areas in May, with a 33 percent gain.
Phoenix logged the second-largest hike, at 29 percent. Both markets also had the largest gains in March and April.