They say everything is bigger in Texas—but when it comes to home price appreciation, Texas is taking most of the south with it.
According to Clear Capital’s recent Home Data Index (HDI) repot, which reflects quarter-over-quarter and year-over-year home price appreciation, three out of four southern metros are experiencing accelerated home price appreciation growth. Dallas, Texas; Memphis, Tennessee; and Tampa, Florida are among the fastest growing major metropolitan statistical areas (MSAs) in the south.
Though all three MSAs experienced upward trajectory through July, Dallas doubled its quarter-over-quarter growth from 0.9 percent to 1.8 percent. Tampa and Memphis weren’t far behind with growth from 1.9 percent to 1 percent and 1.5 percent to 1.9 percent quarter-over-quarter respectively.
“With demand rising and inventory remaining tight, home prices will continue on an upward trajectory for the southern region,” shared Clear Capital President and Co-Founder Kevin Marshall. “Nationally, home price growth quarter-over-quarter has held steady at 0.8 percent with the southern states as a whole keeping pace, but that doesn’t necessarily mean that prices are rising too quickly.”
Marshall explained that in Clear Capital’s June HDI report, they showed that the Florida metros were experiencing domestic migration growth, which contributed to double-digit year-over-year home price growth, as well as a decline in distressed saturation rates.
Overall, the South underwent 0.8 percent quarter-over-quarter growth, the West experienced 1.3 percent growth quarter-over-quarter, the Midwest experienced 0.3 percent quarter-over-quarter growth, and the Northeast saw 0.9 percent quarter-over-quarter growth totaling U.S. growth at 0.8 percent quarter-over-quarter and 5.8 percent year-over-year.
The price performance of each MSA is balanced against percent of distressed saturation properties, according to Clear Capital. These serve as a health barometer and baseline for the respective metro areas. The U.S. experienced 11.8 percent distressed saturation.