Dallas-area home prices were up just 2.5% in the latest national comparison.
But the small year-over-year increase came in February before the COVID-19 pandemic significantly impacted home market.
Nationwide home prices were 4.2% higher than in February 2019, according to the latest S&P CoreLogic Case-Shiller home price index.
"The stable growth pattern established in the last half of 2019 continued into February," says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. "The National Composite Index rose by 4.2% in February 2020, and the 10- and 20-City Composites also advanced (by 2.9% and 3.5%, respectively). Results for the month were broad-based, with gains in every city in our 20-City Composite; 17 of the 20 cities saw accelerating prices. The National, 10-City, and 20-City Composites all rose at a faster rate in February than they had in January.
"At a regional level, Phoenix retains the top spot for the ninth consecutive month, with a gain of 7.5% for February. Home prices in Seattle rose by 6%, with Tampa and Charlotte prices both gaining 5.2%. Prices were particularly strong in the West and Southeast, and comparatively weak in the Midwest and Northeast.
"Today's report covers real estate transactions closed during the month of February, and shows no signs of any adverse effect from the governmental suppression of economic activity in response to the COVID-19 pandemic," S&P's Craig J. Lazzara said in a statement. "As much of the U.S. economy was shuttered in March, next month's data may begin to reflect the impact of these policies on the housing market."
Most housing economists are predicting only small price gains and even declines in some markets in the months ahead as home purchases have slowed dramatically because of the pandemic.
Before virus became widespread, the largest annual home price gains were in Phoenix (7.5%) and Seattle (6.0%).
Dallas' price rise was the smallest home appreciation in almost eight years.
Only New York (1.5%) and Chicago (0.7%) had smaller year-over-year price increases among the 20 U.S. home markets included in the monthly Case-Shiller survey.
With fewer home sales expected and a significant decline in the number of home listings coming on the market, the outlook for the summer selling season is muted.
"The Case-Shiller indexes for February shows strong enthusiasm in the housing market prior to the COVID-10 pandemic," said Frank Nothaft, CoreLogic's chief economist. "Home buyers, particularly millennials, were encouraged by falling mortgage rates and strong employment market.
"But, developing insights into COVID-19 impacts on the U.S. economy put some uncertainty around housing markets," he said. "Mortgage rates remain historically low and millennials are still active in the market which suggest that while the spring home buying season may be disappointing, there are promising fundamentals for the housing market when the economy picks up speed again."
