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As we move into 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 like mortgage rates, inventory levels, home prices, and broader economic conditions.

This fall market outlook 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 insights to stakeholders in the real estate industry.

Lowering Mortgage Rates Could Stimulate Demand

In September 2024, the Federal Reserve made a larger-than-expected rate cut, reducing the federal funds rate by 50 basis points. This was the first major rate cut since 2020, and it’s aimed at easing inflation and responding to economic uncertainty. While mortgage rates are not directly tied to the Fed’s decisions, they are often influenced by the broader economic environment the Fed’s actions shape.

Currently, the average 30-year mortgage rate hovers around 6.4% and experts are predicting a gradual decline in rates through the next year. This shift is expected to bring more buyers back into the market, especially as they anticipate further reductions.

Inventory Levels Are Slowly Increasing

One of the key changes in the North Texas real estate market is the steady increase in inventory. This gradual rise is providing buyers with more options and helping to alleviate some of the intense bidding wars that 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. Typically, a balanced market is defined by around six months of inventory, where neither buyers nor sellers have a clear advantage. The current trend suggests we are moving in the right direction.

DFW Suburbs: A Growing Popularity Trend

While Dallas and Fort Worth continue to attract a steady stream of buyers, the affordability of surrounding suburbs is a major draw for many North Texans. A recent study 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 excellent amenities, quality schools, and a growing infrastructure, making them attractive for buyers looking for a balance between affordability and convenience. The availability of homes under $500k in these suburbs is a significant factor, especially as prices in Dallas and Fort Worth continue to rise.

The appeal of DFW suburbs lies not only in their affordability but also in their continued expansion. These areas are growing rapidly and are set to provide great long-term value for buyers who are priced out of the Dallas and Fort Worth housing markets.

Economic Factors and the 2024 Presidential Election

Beyond mortgage rates and inventory, the broader economy is also playing a role in shaping the North Texas real estate market. Inflation has cooled slightly, but uncertainty around economic growth continues to influence consumer confidence. As we approach the 2024 Presidential election, economic policies and political outcomes could further affect real estate decisions.

Historically, election years can create a bit of a pause in the housing market, as buyers and sellers adopt a wait-and-see approach. However, the underlying fundamentals of the North Texas market remain strong, supported by population growth, business expansion, and relatively low unemployment rates in the region.

What This Means for Home Prices

As demand remains strong and inventory levels gradually rise, home prices in North Texas are projected to continue their upward trajectory. While they may not increase as dramatically as they did during the height of the pandemic, most experts predict a steady rise through the remainder of 2024.

Fannie Mae’s projection of a 6.1% increase year-over-year is the most optimistic, while the Mortgage Bankers Association and National Association of Realtors also expect solid growth, though at slightly more conservative rates of 4.1% and 3.8%, respectively.

The combination of lowering mortgage rates and modest inventory gains could create a window of opportunity for buyers who act swiftly, but those waiting too long may find themselves facing higher prices as demand outpaces supply.

The Importance of a Knowledgeable Real Estate Agent

In a market as dynamic as North Texas, having a real estate agent with local expertise is more crucial than ever. A seasoned 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 potential changes in mortgage rates or inventory could impact their purchasing power. Similarly, for sellers, an agent’s expertise can help ensure that properties are 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 decline gradually, inventory levels improving, and the continued growth of our suburbs, the real estate landscape remains competitive but promising. As you navigate these market conditions, having a trusted partner to ensure a smooth transaction is critical. Republic Title, the preferred title partner in North Texas, offers proven experience, exceptional service, and a commitment to protecting your largest financial investments.

Source: Republic Title Tip: Fall Market Outlook for Residential Real Estate in North Texas – CandysDirt.com