Is the housing recession over? It sure looks like it! The National Association of Realtors® (NAR) said its home sales have been trending up thanks to increased home-buying activity in the Northeast and Midwest.
In Texas, the housing market is also showing signs of improvement. NAR Chief Economist Lawrence Yun is optimistic that the housing recession is over, although the full recovery is still a ways off. The current demand for housing in Texas is high, leading to multiple offers on properties, but there's still a lack of supply. To meet this demand, homebuilders are increasing production and hiring more workers.
Based on recent Federal Reserve trends and the latest interest hike, Yun predicts that mortgage rates will stabilize this year. He predicts that the 30-year fixed-rate mortgage will average 6.5 percent this year and drop to 6.0 percent in 2024.
Though consumer price inflation is approaching the desired conditions set by the Fed, mortgage rates are not expected to see significant declines. However, given the continuous addition of jobs, any potential decrease in mortgage rates later in the year or next could attract more buyers.
With the increase in new builds, Yun expects an increase of around 720,000 units this year, with inventory levels rising. The national median new home price is projected to dip a bit to just under $450,000 before rebounding in 2024.
These trends indicate a positive outlook for the housing market in Texas through the end of the year, as mortgage rates drop and housing prices remain stable. This means a home purchase in Texas in the next 6 months could be a great investment!