December ‘24 Market Update

As 2024 ends, we are providing a broader insight into the national real estate market, while contrasting data from Texas' four major markets (Austin, Dallas, Houston, and San Antonio) recently released by Texas A&M Real Estate Research Center.

Recent national headlines include: "Fewer previously owned homes changed hands last year than any time since the mid-1990s" (Dow Jones) and "U.S. Home Sales in 2024 Fell to Lowest Level in Nearly 30 Years" (Wall Street Journal). These headlines illustrate a depressed 2024 real estate market, while mortgage rates stabilized in a slim average monthly range of 6.18% to 7.06%.

Credible sources predict a rise in the national housing market for 2025. Their forecasts include: "Home sales to rise between 7% and 12%...with mortgage rates around 6%" (National Association of Realtors), Fannie Mae predicts "Home sales to rise 2.3%", and the Mortgage Bankers Association "foresees sales rising by 5.3%". Notably, no one predicts a slower or declining market for 2025😊

Regarding Texas' four major markets: 1) Unit sales have increased, not declined, for the last 15 months and remain roughly at their trend line at year-end 2024, 2) For the last 5 months, including August, sellers are averaging a sales price of 93.46% compared to their original list price, needing to discount only 6.5%, and 3) December 2024 unit sales have increased in all four markets compared to December 2023. Prices remain solid despite historically elevated days to sell & active listings.