Dallas-Fort Worth home prices rise 3.5% as housing market fends off interest rate pressure

In February, Dallas-Fort Worth home prices saw a 3.5% annual gain, which is slightly below the national average of 6.4%. This marks the largest annual increase for the D-FW area since January 2023, according to data from the S&P CoreLogic Case-Shiller Home Price NSA Index.

Although Dallas had one of the smallest annual price increases among the 20 major metros tracked by Case-Shiller, it had some of the largest home price increases in the country in 2021 and 2022, with year-over-year price increases exceeding 10%.

The report for February showed that gains in the Northeast and the West drove the overall increase in home prices. San Diego had the highest year-over-year gain at 11.4%, followed by Chicago and Detroit with 8.9% increases.

Despite economic uncertainty, home prices continue to rise, with Dallas experiencing a slight monthly increase of 0.6% in February. Eighteen of the 20 metros tracked by Case-Shiller reported a monthly increase, with only Tampa reporting a decline and Cleveland seeing no change.

Looking ahead, there may be challenges for buyers in the D-FW area this selling season. North Texas saw a 7% drop in sales year-over-year in March, with the median home price reaching $395,000, up 1.3% from the previous year.

As the Federal Reserve considers its next steps with interest rates, rising mortgage rates could impact the housing market. Mortgage rates surpassed 7% for the first time this year in April, with the average 30-year rate standing at 7.17% for the week ending April 25th.

Overall, while home prices in Dallas are on the rise, annual gains are relatively muted compared to previous years due to factors such as the addition of newly constructed homes.