May 2024 Housing Stats for North Dallas
The May data shows a market that is hanging tough, despite the headwinds we’ve been facing for the past two years now—higher interest rates, rising buyer costs, low inventory and pervading concern about the direction of the national economy. Add in the uncertainty within the industry about how the NAR settlement will impact transactions, and it’s not hard to imagine a negative impact on the market. And yet, we’re chugging along pretty well through the first five months of 2024.
Looking at numbers, we’re trending ahead of 2023, though slightly below where we were to this point in 2022, before the Fed started raising rates. May sales were up year-over-year in 24 of 44 zones. Among the most notable strong spots were high-volume areas like Allen (+26.3%), Carrollton (+22.9%), Lewisville (+22.5%), Plano (+24.7%), Richardson (+12.9%) and Wylie (+13%). Sales in Dallas were off by 3.8%, but dollar volume and price appreciation were up 15-20%; good month there. The bigger Collin County suburbs (McKinney and Frisco) were off slightly, but positive price growth in both communities suggests that this was more a function of inventory (and perhaps fatigued buyers) than any deeper flaw. The areas where we’ve seen the most remarkable growth in recent years—places like Anna, Celina, Melissa and Prosper—were off by pretty good margins. But here, too, prices were mostly higher. Altos calls all four areas “slight sellers’ advantage,” so the dynamic there is different than what we’ve gotten used to. But no cause for alarm bells yet. Denton County also showed strength with Denton (+5.4%), Argyle (+40.4%), Flower Mound and Lewisville leading the way. Prices were up in a majority of areas. The March Case Shiller data (the most recent aggregate numbers we have) show that prices grew by 3.6%, which is below the national average of 6.5%, but when one considers some of the predictions made for our market by industry analysts, we’ll take 3.6%. The prediction from the economic staff at Realtor.com that prices would drop significantly in North Texas? Not aging well.
We continue to see stuff in national media talking about properties being overvalued and suggesting that a correction is coming. In all candor, there may be areas in the country where that happens sooner than later. Higher rates and affordability certainly give pause—but given the continued growth, in-migration and high demand in North Texas, maybe don’t pencil in a market crash on your calendar just yet. Mortgage rates likely stay right about where they are—the most recent inflation data (3.3% for May) is still a little hot for the Fed’s tastes; the Wall Street Journal posited earlier in the week that we may only get one rate cut, and it would be later in the year. But even at 7.5%, there is still solid demand. A rate drop would be a nice kick-start, but as long as we don’t get too close to 8.0%, the momentum we have (such as it is) should continue. In an election year, strange things happen and events can turn on a dime. But at least as of right now, the status quo is holding.
At Zee Star Realty Group, we’re here to help you navigate these trends and make the best decisions for your unique situation. Whether you're buying your first home or selling your current one, our expert team is ready to assist you every step of the way.
📞 Contact us today to learn more about how we can help you achieve your real estate goals in North Dallas!
Zee Star Realty Group
Ph# 559.ZEE.STAR
Email: ZeeStar.Realty@gmail.com
