‘Home sales will inevitably rise’: National economist shares predictions for North Texas housing market in 2024

Prospective homebuyers are wondering if 2024 will be a favorable year to purchase a home, especially after witnessing the highest mortgage rates in 20 years and dwindling housing inventory throughout 2023.

According to the National Association of Realtors, Austin and DFW are expected to be the most active housing markets nationwide due to substantial pent-up demand and projected faster recoveries. NBC 5 Anchor Brittney Johnson spoke with a prominent housing economist and a prospective homebuyer to delve into the forecasts for 2024.

Vilma Rivera has been on the lookout for a home for her family for four years, a journey fraught with emotional ups and downs.

Starting her search in 2020, Rivera paused due to the COVID-19 pandemic but later resumed after receiving a raise and pre-approval for a larger loan. However, rising interest rates and soaring housing prices made her quest increasingly daunting.

Despite her efforts, Rivera stayed put in her two-bedroom apartment, where rent prices surged from $1,200 to $1,600 a month over four years. She remains committed to finding a home under $280,000, although the average home price skyrocketed from $285,000 in 2016 to over $480,000 in 2023.

With Texas experiencing rapid growth, experts anticipate further price escalations and heightened demand in the housing market. Dr. Lawrence Yun, Chief Economist for the National Association of Realtors, foresees a surge in home sales in 2024, driven by increased construction, supply, and potential home sellers attracted by declining mortgage rates.

However, Dr. Yun cautions against expecting rates as low as 2 or 3%, asserting that the new norm hovers around 6%. He dismisses the notion of a market crash due to the ongoing housing shortage.

As Texas grapples with affordability challenges, particularly for longtime residents, Rivera remains resolute in her pursuit of homeownership. Balancing two jobs and seeking a third, she refuses to delay her dream of providing stability and security for her family.

Amidst these market dynamics, Dr. Yun advises prospective buyers to conduct thorough research and seek guidance from real estate professionals to navigate the evolving landscape.

For more insights into housing market forecasts and resources for prospective homebuyers, visit the designated resources here.