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 [1] recent Home Data Index [2] (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 [3], 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.