Dallas’ housing market has boomed in recent years, but how is 2024 shaping up amid a challenging economic backdrop?
Current Environment
There’s a lot to celebrate in the Dallas real estate market. As reported last month by The Dallas Express, Dallas-Fort Worth enjoyed the nation’s second-largest rise in home sales in January.
Still, it is not all good news for sellers. In February 2024, the median sale price in the city was $212,000, almost $70,000 lower than in February 2023. That means the median sale price in Dallas fell by nearly one-quarter, according to Rocket Homes.
At the same time, however, homes sat on the MLS listing an average of 43 days in February 2024, one day less than the 44 average days seen in the year prior, a positive development. Not only that, 708 homes were sold in the city in February, a 6% jump from the 667 sales witnessed just one month prior.
Sales of single-unit residential housing, such as condos and townhomes, were up 12.46% year-over-year, increasing from 4,744 to 5,335 last month. In dollar terms, volume rose from $2.17 billion to $2.51 billion, per Norada Real Estate Investments. During the same period, median single-unit home sale prices rose 2.12% annually, reaching $382,941, up from $375,000.
The single-family home results were even more impressive. Volume was up 13.62% year-over-year, from 4,392 to 4,990 transactions, with dollar volume rising to $2.37 billion, up from $2.04 billion. The median sale price rose 1.58% annually, hitting $385,000, up from $379,000.
Looking Ahead
Like the rest of the country, Dallas real estate in 2024 exists amid a backdrop of two-decade-high interest rates and inflation that still sits above the Federal Reserve’s target rate. Still, according to some economists, the Big D is predicted to sustain robust activity.
As reported earlier this year, Texas is expected to experience improved economic output, job growth, and population expansion this year, factors that will act as tailwinds on Dallas’ market.
Taking a broad look at North Texas, the National Association of Realtors expects the metroplex to be among the hottest housing markets in the country this year. Dr. Lawrence Yun, the organization’s chief economist, expects an unprecedented rise in prices in the city this year.
“I believe in 2024, we will see more home construction, more supply, and also some delayed potential home sellers coming into the market. Now that the mortgage rates are coming down,” Dr. Yun told NBC 5 DFW.
Yun believes the Fed will enact four or five rate cuts this year, driving mortgage rates lower and spurring more real estate activity. So far, however, Fed Chairman Jerome Powell has not said when Americans should expect the cuts.
