As we head into the final months of 2024, all eyes are on the North Texas real estate market. Buyers and sellers keep an eye on key factors such as home prices, inventory, home prices, and the economy.
The fall market outlook is provided by Republic Title, an industry leader and specialist with over 30 years of experience in North Texas, who closely monitors market trends and provides valuable information to those involved in the real estate industry.
Decreasing Home Prices Can Stimulate Demand
In September 2024, the Federal Reserve cut rates more than expected, lowering the federal funds rate by 50 basis points. This is the first major rate cut since 2020, and is aimed at reducing inflation and addressing economic uncertainty. Although the loan amount is not directly related to the Fed’s decisions, it is often affected by the state of the economy.
Currently, the average 30-year interest rate is hovering around 6.4% and analysts are predicting a gradual decline in rates through next year. The change is expected to bring back more buyers to the market, especially since they are expecting further reductions.
Inventory Levels Are Increasing Slowly
One of the biggest changes in the North Texas real estate market is the increase in inventory. This gradual increase is giving buyers more options and helping to reduce some of the battles that have become more common during the housing crisis. However, despite these developments, inventory levels remain historically low, meaning the market still favors sellers to some extent. In general, a stable market is defined by six months of products, where buyers or sellers do not have the opportunity to appear. What is happening now shows that we are moving in the right direction.
DFW Areas: A Popular Way to Grow
While Dallas and Fort Worth continue to attract more buyers, the lower cost of the surrounding areas is a big draw for many North Texans. A recent survey by GoBankingRates.com ranked Dallas suburbs Lewisville, Waxahachie, Midlothian, and Wylie among the “Most Affordable” areas, with homes under $500k.
These cities, along with others like Frisco and McKinney, offer great amenities, top schools, and growing infrastructure, making them attractive to buyers looking for affordability and convenience. The availability of homes under $500k in these neighborhoods is a priority, especially as prices in Dallas and Fort Worth continue to rise.
The appeal of DFW’s suburbs lies not only in their affordability but also in their expansion. These areas are booming and are poised to provide great long-term returns for buyers priced out of the Dallas and Fort Worth real estate markets.
Economic Factors and the 2024 Presidential Election
Beyond rental rates and valuations, the economy is also helping shape the North Texas market. Inflation has eased slightly, but uncertainty about economic growth continues to weigh on consumer confidence. As we approach the 2024 presidential election, economic policies and political outcomes may also affect House elections.
Historically, election years can cause pauses in the housing market, as buyers and sellers take a wait-and-see approach. However, the fundamentals of the North Texas market remain strong, supported by a growing population, rising business activity, and declining employment in the region.
What This Means for Home Prices
As demand remains strong and inventory continues to rise, North Texas home prices are expected to continue to rise. Although they may not increase as much as they did during the peak of the epidemic, many experts predict a steady increase for the rest of 2024.
Fannie Mae’s forecast of 6.1% annual growth is the most optimistic, while the Mortgage Bankers Association and the National Association of Realtors also expect strong growth, albeit at slightly slower rates of 4.1% and 3.8%, respectively.
The combination of lower home prices and lower profits may create opportunities for buyers who act quickly, but those who wait longer may face higher prices as demand grows.
The Importance of a Real Estate Professional
In a market as dynamic as North Texas, having a real estate agent with local expertise is more important than ever. An experienced agent understands how to navigate market fluctuations, secure the best mortgage rates, and negotiate deals in a competitive environment. Agents who keep a close eye on market trends can help buyers understand how changes in mortgage or property prices can affect their purchasing power. Likewise, for sellers, the expertise of an agent can help ensure that goods are properly bought and sold effectively.
Finally, the fall of 2024 presents a unique opportunity for buyers and sellers in North Texas. With home prices expected to continue to decline, the supply chain to expand, and the continued growth of our communities, the housing market remains competitive but promising. As you navigate the market, having a trusted partner to ensure your success is essential. Republic Title, North Texas’ favorite title, offers guaranteed information, exceptional service, and a commitment to protecting your largest financial investment.
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