By all accounts, 2023 was a tough year to sell or buy a house for the average Trophy Club family. Due to steeply rising mortgage rates, financial market uncertainty, and extremely low inventory, the number of homes sold in Trophy Club fell to its lowest level in recent memory. Only 191 homes exchanged hands in our town last year, down 32% from 2021 levels.
For those who hope to sell their current home and/or buy a new one, 2024 may turn out to be your year! Four reasons for being optimistic about the real estate market in 2024 are:
- In the last 2 months, average weekly 30 yr. mortgage rates dropped from 7.9% to 6.6%. Experts predict rates will settle around 6.0% by the end of the year.
- Inflation rates which began 2022 at 6.3%, fell to 3.1% in November. This bodes well for an eventual easing of The Federal Reserve's inflation-fighting policies. The stock market rallied at the end of the year - the S&P Index rose 25% and the NASDAQ was up a whopping 45%.
- Consumer sentiment is on the rise as well. The University of Michigan's index of Consumer Sentiment rose 14% in December due to substantial improvements in how consumers view the trajectory of inflation.
Currently, the big question begging for an answer is how far will mortgage interest rates eventually fall? The further they fall, the weaker the so-called mortgage lock-in effect becomes (homeowners unwilling to let go of their current lower rate mortgage). Also, the further they fall, the more affordable a new home becomes.
The Vivian Real Estate Group can help you decide when it is the right time to sell or buy. We know the market in Trophy Club because we live here, and we sell here.
Thinking of selling or buying in 2024? Call Kristin today for a free consultation! (817)542-8772.
Written by Allan Vivian
