Denver, Miami and Dallas are leading the country in home price gains.
All three major cities saw home prices soar by more than 8 percent in January, according to the latest Standard & Poor’s/Case-Shiller Home Price Index.
Dallas-area prices were 8.1 percent higher than in January 2014, according to the closely-watched home price report.
Nationwide prices were up 4.5 percent in the just-released Case-Shiller survey.
“The combination of low interest rates and strong consumer confidence based on solid job growth, cheap oil and low inflation continue to support further increases in home prices,” S&P’s David M. Blitzer said in the report. “Regional patterns in recent months continue: strength in the west and southwest paced by Denver and Dallas.”
Dallas’ year-over-year price gains in January were the largest since early 2014.
Home prices in North Texas are now at a record high. And Dallas prices in the Case-Shiller index are now 13 percent ahead of where they were at the peak of the housing market before the recession.
Even with continued low mortgage rates, many potential buyers are being priced out of the market.
“Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback,” Blitzer said.