As we enter the final months of 2024, all eyes are on the North Texas real estate market. Buyers and sellers are paying close attention to key factors such as mortgage rates, property levels, home prices, and general economic conditions.
This fall market overview is provided by Republic Title, an industry leader and title expert 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.
Lowering Mortgage Rates May Stimulate Demand
In September 2024, the Federal Reserve made a bigger-than-expected rate cut, lowering the federal funds rate by 50 basis points. This was the first rate cut since 2020, and is aimed at easing inflation and responding to economic uncertainty. Although the interest rate is not directly related to the Fed’s decisions, it is often influenced by the general economic conditions of the Fed’s actions.
Currently, the average 30-year mortgage rate is around 6.4% and experts are predicting a gradual decline in rates through the next year. This change is expected to bring consumers back into the market, especially as they expect a reduction.
Inventory Levels Are Increasing Slowly
One of the most important changes in the North Texas real estate market is the strong increase in inventory. This gradual rise is giving buyers more options and helping to reduce some of the fierce bidding wars that have characterized the pandemic. However, despite this progress, resource levels remain low by historical standards, meaning that the market still favors investors to some extent. Generally, a fair market is defined by six months of buying, where neither buyers nor sellers have a clear advantage. Current trends show that we are moving in the right direction.
DFW Suburbs: Growing Popular Culture
While Dallas and Fort Worth continue to attract steady buyers, the affordability 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 $500.
These cities, along with others like Frisco and McKinney, offer excellent schools, quality schools, and growing infrastructure, making them attractive to buyers looking for a balance between affordability and convenience. Availability of homes under $500k in these areas is a priority, especially as prices in Dallas and Fort Worth continue to rise.
The appeal of the DFW suburbs lies not only in their affordability but also in their continued expansion. These properties are growing rapidly and are poised to provide great long-term value for buyers looking to sell out of the Dallas and Fort Worth housing markets.
Economic Factors and the 2024 Presidential Election
Beyond property taxes and inventory, the broader economy is also playing a role in shaping the North Texas real estate market. Inflation has eased slightly, but uncertainty about economic growth continues to affect consumer confidence. As we approach the 2024 Presidential elections, economic policies and political outcomes may affect real estate decisions.
Historically, election years can create pauses in the housing market, as buyers and sellers take a wait-and-see approach. However, the underlying North Texas market remains strong, supported by population growth, business expansion, and low unemployment rates in the state.
What This Means for Home Prices
As demand remains strong and inventory levels steadily rise, home prices in North Texas are expected to continue their upward trend. While they may not increase as much as they did during the height of the epidemic, many experts predict a strong rise through the remainder 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 lower rates of 4.1% and 3.8% respectively.
The combination of lower mortgage rates and moderate income can create a window of opportunity for buyers who act quickly, but those who wait longer may find themselves facing higher prices as demand outstrips supply.
The Importance of an Aware Real Estate Agent
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 the market changes, secures the best mortgage rates, and negotiates deals in a competitive environment. Agents who monitor market trends can help consumers understand that potential changes in mortgage rates or inventory could affect their purchasing power. Similarly, for sellers, the skills of an agent can help ensure that properties are sold correctly and sold successfully.
In conclusion, the fall of 2024 presents a unique opportunity for buyers and sellers in North Texas. With mortgage rates expected to gradually decrease, inventory levels improving, and the continued growth of our real estate, the real estate space remains competitive but promising. As you navigate these market conditions, having a trusted partner to ensure a smooth transaction is essential. Republic Title, the exclusive title partner in North Texas, offers proven knowledge, exceptional service, and a commitment to protecting your largest investment.
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