Dallas-area home prices are up by less than the national average in another new housing report.
CoreLogic reports that Dallas prices rose 6.4% in June compared with a year earlier. That's less than the 6.8% nationwide year-over-year gain.
And Dallas' home price growth is much less than the double-digit percentage increases in hot Western markets including Las Vegas and Los Angeles.
Increases in home prices around the country are making it harder for young buyers and cooling sales, according to CoreLogic chief economist Frank Nothaft.
"The rise in home prices and interest rates over the past year have eroded affordability and are beginning to slow existing-home sales in some markets," Nothaft said in the report. "Further increases in home prices and mortgage rates over the next year will likely dampen sales and home-price growth."
Dallas-area home sales have slowed in many neighborhoods after years of rising prices.
And the rate of home price growth in North Texas has slowed to the lowest pace in more than five years.
Median prices in the area through the first half of 2018 were up only 5% from the same period last year, according to data from local real estate agents.
After several years of strong appreciation, CoreLogic estimates more than 50 percent of the top U.S. home markets — including Dallas — are overvalued.
The housing analysts are forecasting that nationwide price increases will rise by about 5.1% in the year ahead.
The slowdown in price increases may allow first-time buyers' incomes to begin to catch up with housing costs.
"One-third of millennial renters reported feeling they cannot afford a down payment to buy a home," Frank Martell, president and CEO of CoreLogic, said in a statement. "With home prices rising quickly over the past few years and supplies low, first-time homebuyers face ever-growing challenges to find and buy affordable entry-level homes."
