Home prices started falling across most of the nation after the post-Covid housing boom peaked last year, but prices may have bottomed out, and some Texas cities could see a surge in home values.
Not only have U.S. home prices stopped declining, but they rose nearly 5 percent between February and June, Fortune reported, citing a study by Zillow.
Zillow predicts that home prices will rise 6.3 percent over the next year, but two Texas metros could see even bigger increases.
Home prices in Tyler, about 100 miles east of Dallas, are projected to climb by 9.3 percent between from 2023 to June 2024. Only Baton Rouge, Louisiana, is expected to have a larger increase, of 9.8 percent.
The San Antonio-New Braunfels area is also one of just 48 U.S. markets forecasted to have gains of seven percent or higher. Zillow predicts that home prices in the San Antonio metro will rise 8.2 percent over the next 12 months, ranking 16th on its list.
Among markets projected to have the largest increases, low housing supply and less deteriorated affordability were the main factors.
Despite high interest rates and fears of a possible recession, many buyers are desperate and willing to pay far beyond initial asking prices.
“The second quarter is traditionally the hottest time of year for the for-sale housing market, and that rule proved true in 2023. What comes next is less certain, as buyer demand typically begins to wane in the summer,” Zillow’s Jeff Tucker said in the report. “But this year — like a test of the classic unstoppable force meets an immovable object paradox — that trend will be set against incredibly scarce new listings.”
—Quinn Donoghue
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