Texas HPI Shows Prices Up 1.9 Percent in December 2024

The latest Texas Home Price Index (HPI) published by the Texas Real Estate Research Center (TRERC) shows Texas’ December home prices rose 1.9 percent from a year ago (Figure 1). On a month-over-month basis, home prices statewide slipped 0.2 percent from November 2024, reflecting a normal seasonal softening.  

Since January 2023, Texas home prices have been climbing statewide at a rate of 2 percent per year after cooling off in 2022 following the Federal Reserve interest rate hikes. As of year-end 2024, statewide home prices remain slightly below their pandemic peak levels.    

Across the Big Four Texas Metropolitan Statistical Areas (MSA), December’s year-over-year (YOY) change ranges from 0.2 percent in Austin and 0.5 percent in San Antonio to 2 percent in DFW and 2.3 percent in Houston. Houston also recorded the largest two-year price growth (5.2 percent), averaging 2.6 percent per year in 2023 and 2024. In Dallas, the two-year price change was a modest 4.7 percent, averaging 2.35 percent per year. In San Antonio, home prices have remained relatively flat through 2023 and 2024. 

Austin home prices are likely bottoming out after 25 consecutive months of declines following significant price run-up during the pandemic. For the first time since November 2022, the index registered a small positive YOY growth.  

As of year-end 2024, home prices in all Big Four Texas MSAs remain below the pandemic peak levels, with Austin showing the largest decline since May/June 2022 at 18.6 percent, followed by Houstin (5.1 percent), Dallas (4.6 percent), and San Antinio (3.6 percent) (Figure 2).   

At the current pace of recovery, a full price rebound will take time, especially in the Austin market. The persisting challenges from high mortgage rates, inflationary expectations, and a locked-in housing supply are unlikely to change in the near term. This will continue to impact housing affordability and availability.     

TRERC Home Price Index: More Timely, More Accurate, and More Available  

TRERC’s HPI is based on monthly closing sales recorded by more than 50 Multiple Listings Services across the state, providing the most timely and accurate indicators of home price trends in Texas and its various geographical markets and local market areas. The index is based on actual sales prices, thus avoiding potential biases and inaccuracies that can arise when a home price index relies on estimated transaction prices for a nondisclosure state like Texas. For more information on the HPI’s coverage and methodology, visit Texas Real Estate Research Center online. A tutorial on how to use the index is also online at Texas Home Price Index Explained – REC 101.