January 19, 2024 | by Anna Orendain
Categories: Affordable Housing, Homeownership, Rental Housing
With each new year comes new and exciting possibilities for the future. To continue our kickoff of 2024, we're bringing you some of the top predictions for the housing market this year.
Whether you're interested in national trends or what's happening in Texas, the below predictions should give you some insight into the year ahead.
Redfin believes that interest rates for 30-year mortgage loans are likely to drop slowly throughout 2024. While they believe mortgage rates will still remain above 6%, the drop should still provide some relief to those who are trying to purchase a home this year.
Bankrate.com, Redfin, and Realtor.com all agree that the amount of houses for sale on the market is and will remain low throughout 2024. While the upside is that Texas is currently one of the highest-producing homebuilding markets in the nation (as noted by the Texas A&M University Real Estate Research Center), the fact remains that the home buying market this year is likely to remain competitive.
Though mortgage rates are expected to drop this year, both Bankrate.com and the Texas A&M University Real Estate Research Center believe that the average home price is likely to stay about the same as it was in 2023.
In fact, home prices will supposedly rise on a national level, but the price of an average Texas home should stay the same or even drop very slightly. Realtor.com projects that a few of Texas' major cities, such as Austin, Dallas-Fort Worth, Houston, and San Antonio, will be the ones to see this small drop.
Over the past couple of years, the population boom in many Texas cities has led to a surge in demand for housing, leading to a rise in average rental prices as well as a drop in rental home affordability.
However, as both Apartment List and Realtor.com pointed out, many of the major Texas cities have permitted a high number of housing units to begin development. As these projects reach completion throughout the coming year, the increased supply of rental housing will allow for rental prices to drop as supply begins to meet or outpace demand. This has already started in Austin, where rental prices, as noted by Apartment List, are "falling at the fastest pace in the nation" despite the city's continued population growth.
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