Texas home prices still rising against headwinds

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.