Homeowners and buyers in Texas may find themselves in a new dynamic in 2024. After a period of escalating prices, relief appears on the horizon, with anticipated reductions in home prices across several major Texas cities. As KXAN reports, a Realtor.com forecast suggests that home prices will experience a general decline next year. Among them, Austin is predicted to face the sharpest drop, with a steep 12.2% decrease.
Joining Austin in the downward trend, San Antonio, Dallas, and Houston are also on the list of cities bracing for a drop in median home values. Of note, San Antonio's home prices are expected to fall by 9.4%, according to a Realtor.com analysis cited by Express News. Reduced prices, expected in 21 of the country's largest metro areas, could signal a modest reprieve for the real estate market after a sustained period of price hikes.
Insights from the National Association of Realtors indicate that the all-time highest median home price record, sitting at $413,800, was achieved in 2022. Although the median home price cooled to $379,100 this October, that figure still represents a 40% increase since October 2019. This historic rise in prices, experts suggest, set the stage for the imminent course correction in the housing market.
While a drop in home prices might ignite the interest of first-time buyers, the current lending landscape with high mortgage rates could still present barriers. Realtor.com's chief economist, Danielle Hale, looking ahead, told KXAN, "It’s going to stop getting worse." Rents, likewise, are expected to trend downward but at a gentler pace, shedding 0.2% nationally as per Realtor.com's predictions published by Express News. This forecast introduces a slight but palpable change in a market that has been feverish throughout the pandemic.
The anticipated ease in housing costs may be precisely the market correction analysts have been forecasting. With expectations for a more aligned real estate market in terms of pricing and financing come 2024, Texans residing in Austin, San Antonio, Dallas, and Houston might just find a silver lining in what has been an otherwise tumultuous real estate climate.