How will rate cuts effect D-FW housing market?

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Home prices in Dallas-Fort Worth were flat last month, and sales fell slightly compared to last August despite supply increases. However, recent mortgage rate...

One of DFW area realtor Brianna Castillo's listings in Plano, TX, on Aug 23, 2024. Home prices in Dallas-Fort Worth were flat last month, and sales fell slightly compared to last August despite big supply increases.

RE/MAX’s National Housing Report showed similar figures for Dallas-Fort Worth. The region ranked third in the nation in home sales, behind Chicago and New York.Villupuram said it’s a months-long trend in D-FW. More houses may be on the market, but it’s not the type of supply that buyers want. The homes are likely priced too highly.Todd Luong, an agent with RE/MAX DFW Associates, said lower sales numbers in August could be the result of buyers waiting for interest rates to drop further.

“Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but we expect rates to fall further, sparking more housing activity,” he said.Luong, Villupuram and Ted Wilson, who oversees housing market research firm Residential Strategies, said this decline coupled with future mortgage rate drops next year will likely spur some activity.

 

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