Buyers and sellers are closely monitoring important factors such as mortgage rates, inventory levels, home prices, and overall economic conditions.
Republic Title, a leading company with over 30 years of expertise in the North Texas region, presents its market forecast for this fall, as reported by Candy’s Dirt.
Republic Title expects inventory levels to increase over time and DFW suburbs to become more popular as lower mortgage rates may increase demand.
Here’s the rest of what Republic Title told Candy’sDirt about the real estate market in the final months of this year.
Lower mortgage rates could stimulate demand
In September 2024, the Federal Reserve delivered a larger-than-expected rate cut, cutting the federal funds rate by 50 basis points. This is the first major rate cut since 2020 and is aimed at easing inflation and addressing economic instability. Although mortgage rates are not directly related to Fed decisions, they are often influenced by the broader economic environment that the Fed’s actions shape.
Currently, the average 30-year mortgage rate is hovering around 6.4%, and experts expect rates to gradually decline over the next year. This change is expected to bring more buyers back to the market, especially those looking for further savings.
Inventory levels are gradually increasing
Housing inventory is slowly increasing in North Texas
One of the key changes in the North Texas real estate market is the steady increase in inventory. This modest increase has given buyers more options and helped alleviate some of the cutthroat bidding wars that have characterized the pandemic-era housing boom. However, despite this progress, inventory levels remain relatively low by historical standards, meaning the market still favors sellers to some extent. A balanced market is typically defined by about six months of inventory, with neither buyers nor sellers having a clear advantage. Current trends suggest we are moving in the right direction.
DFW Suburbs: Trends in Popularity
Historic Downtown Wylie (Photo: Mimi Perez for CandyDirt.com)
While Dallas and Fort Worth continue to attract a steady stream of buyers, the affordability of the surrounding suburbs remains a big draw for many North Texans. A recent study by GoBankingRates.com ranked the Dallas suburbs of Lewisville, Waxahachie, Midlothian and Wylie as the “most affordable” neighborhoods with home prices under $500,000.
These cities, like other cities such as Frisco and McKinney, offer excellent amenities, quality schools, and growing infrastructure, making them attractive to buyers seeking a balance of affordability and convenience. It has become a typical city. The availability of homes under $500,000 in these suburbs is an important factor, especially as prices in Dallas and Fort Worth continue to rise.
The DFW suburb’s appeal lies not only in its affordability, but also in its continued expansion. These areas are growing rapidly and will provide great long-term value for buyers who are priced out of the Dallas/Fort Worth housing market.
Economic factors and the 2024 presidential election
Beyond mortgage rates and inventory, the broader economy also plays a role in shaping the North Texas real estate market. Inflation has slowed slightly, but uncertainty around economic growth continues to weigh on consumer confidence. As the 2024 presidential election approaches, economic policy and political outcomes may further influence real estate decisions.
Historically, election years can cause some pause in the housing market as buyers and sellers take a wait-and-see attitude. However, the underlying fundamentals of the North Texas market remain strong, supported by the region’s population growth, business expansion, and relatively low unemployment.
What this means for house prices
North Texas home prices are expected to continue their upward trajectory as demand remains strong and inventory levels gradually rise. While the increase may not be as dramatic as it was at the height of the pandemic, most experts predict a steady increase through the remainder of 2024.
Fannie Mae’s 6.1% year-over-year forecast is the most optimistic, but the Mortgage Bankers Association and the National Association of Realtors also forecast solid, if somewhat conservative, growth at 4.1% and 3.8%, respectively.
The combination of lower mortgage rates and moderate inventory growth may create opportunities for buyers who act quickly, but if they wait too long they could face higher prices as demand outstrips supply. There is sex.
The importance of a knowledgeable real estate agent
In a dynamic market like North Texas, having a real estate agent with local expertise is more important than ever. Experienced agents understand how to navigate market fluctuations, secure the best mortgage rates, and negotiate deals in a competitive environment. Agents who closely monitor market trends can help buyers understand how potential changes in mortgage rates and inventory will affect their purchasing power. Similarly, for sellers, an agent’s expertise helps ensure that the property is priced correctly and marketed effectively.
In conclusion, the fall of 2024 presents a unique opportunity for buyers and sellers in North Texas. With mortgage rates expected to gradually decline, inventory levels improving and continued growth in the suburbs, the real estate landscape remains competitive yet promising. To navigate these market conditions, it is important to have a reliable partner who ensures smooth transactions. Republic Title, North Texas’ preferred title partner, offers proven experience, superior service, and a commitment to protecting the largest financial investments.
