While buying activity has slowed due to high interest rates, home values are soaring across the country, with the smallest gains in metro Texas.
Typical U.S. home values rose 1.4% from April to May, the biggest monthly gain since last June, according to a Zillow report.
Home prices rose in all major Texas cities from April to May, but all below the national average. Home prices rose 0.6 percent in Austin, 0.7 percent in San Antonio, 0.8 percent in Houston and 1.1 percent in Dallas.
Columbus, Cincinnati, Detroit, Milwaukee and Richmond saw the largest increases, with month-over-month increases of 2% or more.
Low inventory levels have caused home values to soar, the report said. Many potential buyers and sellers are waiting for rates to drop before entering the market, but this has led to bidding wars and high sales prices among relatively few active listings.
Through May, new listings were down nearly 23 percent year-over-year in Austin, 12.4 percent in Dallas, 17.7 percent in Houston, and 15.8 percent in San Antonio.
Home prices in the Texas Triangle also fell year-over-year in May, with Austin’s 11.2 percent drop the largest in the nation. Year-over-year home prices fell 0.62% in Houston, 1.1% in San Antonio, and 3.1% in Dallas.
Richmond, Virginia, saw the largest year-over-year home price increase of 5.7%, followed by Miami with a 5.3% increase, Oklahoma City with a 4.9% increase, and Kansas City with a 4.08% increase.
