Dallas-area home prices were 6.9% higher at the end of 2017 compared with a year earlier, according to a new report by CoreLogic.

Dallas' year-over-year home price gain was slightly ahead of the 6.6% nationwide price increase from December 2016.

"Home prices continue to rise as a result of aggressive monetary policy, the economic and jobs recovery and a lack of housing stock," Frank Martell, president and CEO of CoreLogic, said in the report. "The largest price gains during 2017 were in five Western states: California, Idaho, Nevada, Utah and Washington.

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"As home prices and the cost of originating loans rise, affordability continues to erode, making it more challenging for both first-time buyers and moderate-income families to buy," Martell said. "At this point, we estimate that more than one-third of the 100 largest metropolitan areas are overvalued."

Dallas-area home prices have risen more than 40% in the last four years, giving the area one of the greatest home price appreciation increases since the recession.

At the end of 2017, some of the biggest annual home price increases were in Las Vegas (up 11.2%), San Francisco (10.1%) and Denver (8.1%).

CoreLogic predicts that nationwide home prices will rise 4.3% during 2018.

Tribune Content Agency