Our team has watched the ebbs and flows of the housing market for over 28 years. Ever since starting our design/build firm and later expanding our services to interior design and handyman lines, we’ve had a constant pulse on what homeowners are buying and selling.
What do the ebbs and flows mean, though? And why do we watch them?
More importantly, for you…what do they mean for homeowners who are looking to buy? Or even those who are thinking of renovating then selling their homes within the next few years?
Whatever moves you’re thinking about, you want to make informed decisions. You aren’t just purchasing a house…you want to end up loving your home. Whether that means renovating the one you’re in, buying a new build, or dreaming up an addition with all the comforts…well, after reading this article, YOU’LL decide what’s right for you!
Understanding the U.S. and Southwest U.S. Home Sale Trends in 2024
In the last six months, what’s happened in the overall U.S. housing market?…
Simple:
- In May 2024, the number of existing-home sales decreased just a little from previous months, but the decline came with a small hike in prices…which were already high.
- The median home price in the U.S. is now $419,300, which might not seem like THAT much in the Dallas/Fort Worth metro…but it’s a record high for the country. (This is a 5.1% jump from the same time last year.)
- The active inventory (meaning, the number of homes on the market) grew by 30% MORE in April 2024 than the same month last year!! Yet…sales didn’t spike…only prices did. What does this mean? It means buyers have more available options, and the “less desirable” homes on the market will have to drop in price to turn over, which will finally lead to a climb in the number of sales.
- Higher mortgage rates, too, are making certain home purchases more complex…and sometimes unattainable. Even high-income households buying homes of $1 million or more are looking instead at the benefits of building additions instead of buying new homes. They get more return on enjoyment out of it in some cases.
In the Southwest, and Texas, and Fort Worth…
Now let’s focus on the Southwest and states like Texas…here are the recent market trends:
- Listing prices have been more stable in Texas than the rest of the country, however the region did see an increase in the inventory of homes just like everyone else.
- With more homes on the market, pending sales still declined a little in May 2024. In fact, they dropped even more than the national average declined…
So…what’s that mean??
There will probably be less competitive bidding wars between homebuyers now that the inventory has grown SO much. This will mean the number of homes successfully sold will grow finally, too.
Prices might come down, also…or at least remain relatively stable.
Higher mortgage rates still make buying homes a tough decision…is it always the financially sound move?
…Well, that depends what you want. Are you after your dream home? Or a “for now” home? With the end of bidding wars, you can finally ask that question!!
READ: if your priority is to find the perfect home, that sanctuary, that space with all the comforts and amenities you want…then buying might not do the trick. Everything is more personalized now, from home design to the kitchen appliances. An addition (so you can skip the high mortgage rates altogether) might deliver a greater return on enjoyment in some cases. This is something serious to consider.
Do you live around Fort Worth?
The Dallas/Fort Worth area (and our own bubble of the metro in Keller, Texas) have already seen price dips in listing prices as bidding wars slow down…
The number of new home listings in the area has also grown more than the national average, with a 41% jump year-over-year. That is a LOT of houses on the market, y’all!!
Homes that are still the most sought-after are those with certain luxury amenities…for some of us, these are essentials!! There are indoor-outdoor kitchens, pools, storm shelters, and other outdoor living spaces that complement the Texan summer in lifestyle-changing ways.
(For example, see what this family decided to do for their dream indoor-outdoor haven instead of moving to a new home…)
If you’re in the market for a luxury home…expect to find more properties on the market with the high-end amenities you want for your comfort and safety.
BUT, there’s a catch…
Trends in New Home Builds: Quality vs. Quantity
The market for new home builds in the Fort Worth area, specifically, is booming…but it’s not without its pitfalls.
We KNOW there’s been an increase in new builds because areas of the metro are all reporting higher demand for building permits.
Does a building permit cover it all, though? For example…did you know that Texas is a state which DOESN’T require specific certifications for design/build remodelers, builders, or interior designers?
Yeah…the alphabet soup you see after names like ours (like the company’s NARI accreditation) are voluntary in the state of Texas. That tells you something…it’s why we’re one of only TWO NARI accredited remodelers in the STATE. That does mean that NOT all new builds or renovations will be of the same quality, safety, or ultimate satisfaction…
The inflation of building material costs have pressured builders even MORE this year to cut corners, too, which has NOT been conducive to craftsmanship or quality…
What’s a homebuyer to do??
If you’re concerned about building standards (in a new build OR an older home), you’re right to be thinking about this!! The rush to meet higher demand for housing has meant declining standards and a HUGE impact on the return on enjoyment families get from the homes they buy.
Did you see the video in our private design group where we share things we’ve seen in new builds that are either against code, poorly built, WAY under the price-point of the home, or totally BACKWARDS for the way homes are used?! Watch it now… to give you a preview, we’ve seen (in NEW builds, mind you):
- Live wires shoved into walls
- Light switches that don’t do anything
- Light switches downstairs that turn something on UPSTAIRS!
- A powder room built right in the line of sight of the front door (what a weird first impression for guests who walk through!!)
- And, our recent favorite, cabinets in a NEW $1.2 million home made with particle board. They weren’t even finished on the bottom!!
Here’s what you can do to make the best decision if you do plan on buying a home, new or old:
- Hire your OWN inspector and conduct a thorough inspection of everything
- Research the reputation of the builders, in the case of new homes
- Ask the neighbors…homes built in a similar timeframe might have similar problems…AND the neighbors might remember when they saw work done on the home
- Consider the benefits of an addition instead of buying a home, depending on your priorities
- Get a renovation or design firm to come in and walk through for a lifestyle inspection, too…for instance, would you think of the implications of the direction doors swing, or the size of the windows, or the placement of the bathrooms? A professional designer can help you ask all the right questions…
- Patience pays off…these days, that is…now that bidding wars are slowing down, you can wait for the well-built home, even if it takes longer to find
The current market conditions are getting MUCH better for buyers…but if you buy a new home, be prepared to either commit to the renovations right away that turn the house into your home, or go in with your most trusted design professionals beforehand to find the perfect house that seems almost designed for you…
Meanwhile, stay informed!! Join the conversation in our private design group, and sign up for our quarterly design magazine for more inspiration…
The end result of any decision you make should be you, loving your home, in all the ways you dream of.
For personalized guidance and design insights tailored to your needs, feel free to reach out. Happy home hunting!!
About the author
Robin Burrill, RID, NCIDQ, ASID, IDS, CAPS, is an award-winning professional kitchen, bath, and interior designer. Robin and her husband, Robert Mathews, have owned Signature Home Services, Inc. for nearly three decades, establishing a superior in-house team with a widespread reputation for delivering meticulous design to their many repeat clients.
In 2022, the national publication, Kitchen and Bath Design News magazine, named Robin to their Top Innovator list in recognition of her achievements in the field of kitchen and bath design. In 2024, she was named one of the Fall 2024 Market Pros and “tastemakers” by ANDMORE at High Point Market. Also in 2024, Fixr identified her as one of the Top Professional Interior Designers for their nationwide audience. Over her extensive career, Robin has been quoted in Architectural Digest and Forbes multiple times; her design work has been featured in top national trade publications; and she has been interviewed for Designers Today magazine’s “Profiles in Design” video series, among others. Widely respected for the depth of her knowledge, Robin is a sought after speaker and judge for many design industry events.
In 2023, Robin designed a bench for Charleston Forge, making her foray into product design. Robin currently serves as a volunteer on the board of the Dallas/Ft. Worth chapter of the Interior Design Society.
Thanks so much, Amy!! It’s so important to us to keep homeowners informed. We’ve been focusing on Texas, of course, but from what we’ve seen in national trends, it does seem like you guys are seeing LOTS of the same in your area.
Yes, exactly, Janet! It would be nice to assume that the homes with the higher sticker prices are kept to high standards, but it’s appalling now *not* true that is. Everyone has to be their own advocate, especially with an investment as tremendous as a house.
Yes, Leslie!! Buyers having OPTIONS is a big shift from where we’ve been the last few years…and now, having options also means greater due diligence.
What a wealth of information! I see so many parallels to what is happening to our real estate market in the Northeast. Hoping there will be a balancing out of prices and mortgage rates in the year to come. Filled with great advice on what to watch out for, this is a great post!
These are such important considerations for anyone looking for a new home or considering a renovation. We’ve seen similar trends here in the Northeast with soaring home prices and some questionable quality in new builds – I’m often appalled at what passes for acceptable design and finishes in a $1.5 million + home!
Hi Robin ~ What a wonderfully informative post, especially for those in your local area who are considering whether building, buying or adding an addition is the best move for them to maximize their return on enJOYment!
It’s good to see inventory building, though.. at least that means people have options..something they haven’t had in quite a while.