The Dallas-area led the country in home price gains in April.
Dallas home prices were 10.3 percent higher than in April 2014, according to the latest report from CoreLogic Inc.
Houston was second with a 9.5 percent gain.
Nationwide prices were 6.8 percent higher during the same period.
"Old fashion supply and demand, fueled by historically low mortgage rates and improving consumer finances and confidence, continue to push home prices up," said Anand Nallathambi, president and CEO of CoreLogic. "We expect continued price appreciation throughout 2015 and into next year."
North Texas home prices are now at a record high and about 15 percent ahead of where they were before the recession.
North Texas home prices, sales set new records in May
by Dallas Morning News
North Texas home prices jumped by 14 percent in May - one of the largest year-over-year gains ever for the area.
Median home sales prices hit a record $215,000 last month for pre-owned single-family homes sold by real estate agents. Home sales were up 6 percent from May 2014 with 9,484 properties sold.
It was the largest one-month sales total ever for North Texas, according to data from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems.
With the strong sales, the number of homes listed with real estate agents in the area dropped 15 percent from this same time in 2014. There was a 2.4-month supply of homes in real estate agents' multiple listing service, less than half of what is considered a normal inventory.
May's strong home sales and price spike will put more pressure on the local housing market which is stretched with more buyers than sellers.
National surveys show that the Dallas-Fort Worth area is seeing the largest annual home price gains in the country. Prices here are rising at about three times the long-term average rate of residential appreciation for the area.
North Texas home prices have shot up by more than 40 percent during the last five years thanks to record economic growth in the region and an historic shortage of properties to purchase.
Pay attention to the chaos in the bond market
by CNN Money
That hissing sound you just heard is more air coming out of the bubble in
the global bond market.From Germany to the U.S., fixed income prices
tanked last week, sending yields way up.The turmoil is a clear signal that
investors are bracing for higher interest rates -- whether the Federal Reserve
"It is increasingly clear that the Fed's initial policy rate liftoff should begin in
September," Rieder wrote. He believes the Fed has a "window of opportunity
to move" given the fact that the markets are stable, payroll growth is robust
and foreign central banks in Europe and Japan "are taking the reins of policy
Forcing the Fed's hand? The problem for the Fed is that it could lose
control of the situation -- and risk a loss of credibility -- if it chooses not to act.
"Many doves have cited the fact that if the Fed raises rates too soon, and
then has to reverse, its credibility could be damaged," Rieder wrote. "We
would suggest that when it comes to central banking, credibility cuts
Why the Spring Real Estate Market has Been Awful for Buyers
by Dallas Morning News
NEW YORK (MainStreet) - This spring has been a great time to sell a home, but not such a fine season for buyers.
According to the National Association of Realtors, existing-home sales dropped 3.3% from March to April, but April sales were still 6.1% higher than they were a year before. Unsold inventory was actually 1% less than it was a year ago, though, with a 5.3-month supply of homes still lagging behind the ideal housing supply of little more than six months. The median price of existing homes of all types in April was $219,400, which is 8.9% higher than it was a year before. Housing prices have been increasing for more than three years, but the jump in prices in April was the highest since a 10.1% uptick in January 2014.
"We know that a combination of low supply and high demand increases prices," says Curt VanderZanden, a loan officer with
Mortgage Express in Portland, Ore. "That, of course, is just one reason values in all states rose at a healthy pace last year."
In this climate, 2.2 million existing homes just aren't enough. Houses sold faster in April (at an average of 39 days after listing) than at any time since July 2013 (42 days) and the second shortest time (37 days in June 2013) since NAR began tracking in May 2011.
"Housing inventory declined from last year, and supply in many markets is very tight, which in turn is leading to bidding wars, faster price growth and properties selling at a quicker pace," says Lawrence Yun, chief economist for NAR. "To put it in perspective, roughly 40% of properties sold [in April] went at or above asking price, the highest since NAR began tracking this monthly data in December 2012."
Depending on where buyers are looking, that supply may be healthier than it looks. Distressed sales - which included foreclosures and short sales - made up just 10% of sales in April. That's down from 15% percent share a year ago and, according to real estate data firm RealtyTrac, that's in line with national foreclosure numbers from earlier this year that were the lowest the nation has seen since July 2006.
"Given that August 2006 was the peak of the housing bubble, this eight-and-a-half year low in foreclosure activity is a significant milestone and a sign that nationwide foreclosure activity is on track to return to historic norms this year - and is possibly even headed below historic norms given the skinny-jeans-tight lending standards over the past five years," said Daren Blomquist, vice president at RealtyTrac. "In markets where foreclosures were processed more efficiently we are seeing foreclosure numbers now below pre-crisis levels in some cases. Conversely, the cleanup of deferred distress is continuing in markets where a logjam of in-limbo foreclosures is still lingering from the housing crisis - as evidenced by rebounding foreclosure activity in those markets."
Roughly two dozen states have seen an uptick in overall foreclosure activity. Nevada, Massachusetts and Texas are among states that have seen an increase in homes entering the foreclosure process. Meanwhile, New York, New Jersey and Washington are among states that saw an uptick in foreclosure auctions earlier this year.
Meanwhile, homebuilders and new homes are starting to make a comeback. The National Association of Homebuilders notes that May's 733,000 new housing starts are up 16.9% from a year earlier. Meanwhile, the Census Bureau and Department of Housing and Urban Development noted that the sale of new single-family homes increased a whopping 26% from a year earlier. But a low 4.8-month supply (down from a 6.1-month stockpile in July) has kept average sale prices fairly lofty at $341,000. With the economy recovering, the employment picture looking brighter and Freddie Mac 's average interest rate for a 30-year fixed-rate mortgage still below 4%, there's plenty of incentive to go out house hunting. Until more of those new homes are built or more foreclosures hit the market, however, the housing market will be tilted toward the sellers.
"April's setback is the result of lagging supply relative to demand and the upward pressure it's putting on prices," NAR's Yun says. "However, the overall data and feedback we're hearing from Realtors continues to point to elevated levels of buying interest compared to a year ago. With low interest rates and job growth, more buyers will be encouraged to enter the market unless prices accelerate even higher in relation to incomes."
Invest Your Tax Return into Your Biggest Asset
by Home Advisor
Come tax season, many people choose to invest their tax returns in their
homes. What's the primary reason they remodel? According to our research,