The McAllen housing market presents a mixed picture for potential buyers and sellers in 2024. Home prices continue to rise steadily, but the market is transitioning from a sellers’ frenzy to a more balanced state. Let’s take a closer look at the major trends that will shape the McAllen real estate market this year.
McAllen, Texas Housing Market Trends 2024
Price Trend: Slow Increase
According to data from a variety of sources, including Zillow and Redfin, McAllen home prices are growing slowly in 2024. Zillow reports that the average home price is $225,857, indicating a 5.9% increase over the previous year, while Redfin shows a slightly lower median sales price of $276,000, but still indicates a 0.2% increase compared to 2023. This suggests that McAllen’s housing market is experiencing continued growth, but at a slower pace compared to the previous year’s surge.
Inventory Shift: More Choices for Buyers
One of the most notable changes in the McAllen market is the increase in available inventory. According to Movoto, there were 798 active listings in May 2024, a significant increase from the previous year. This change indicates a subsidence of the sellers’ market that prevailed in 2023. Realtor.com further supports this by declaring McAllen to be a buyers’ market in May 2024, meaning the number of homes for sale is greater than the number of buyers actively searching. This means buyers may have more leverage in negotiating price and terms of sale.
Time in the Market: Finding Equilibrium
Days on Market (DOM) metrics provide valuable insight into the buying process. Redfin reports that homes in McAllen are currently selling after an average of 55 days on market. This is high compared to the active average of 36 days in 2023, but indicates a more balanced market. Movoto also shows the average days on market is 42 days, indicating a return to a more normal pace after the market’s rapid movement the previous year.
Affordability: A relative advantage
McAllen’s median sales price remains significantly lower than the national average — Redfin reports that McAllen’s median sales price is 39% lower than the national benchmark — and this affordability factor continues to attract buyers, especially those who can’t afford more expensive housing markets.
Looking ahead: factors to consider
While the McAllen market appears to be stable, several factors may influence its future trajectory. Rising interest rates, national economic trends, and local developments are all aspects to keep an eye on. Additionally, certain areas within McAllen may experience unique market trends.
McAllen, Texas Housing Market Forecast 2024
The McAllen housing market in 2024 is seeing a shift from the sellers’ frenzy of the past few years. Home prices are still rising, but a more balanced market is emerging. But what does the future hold? Let’s take a closer look at predictions for the McAllen Metropolitan Statistical Area (MSA) for the coming months and for 2025, based on the data provided (assuming it’s accurate).
Forecast Breakdown: Moderate Increase
According to Zillow data, McAllen’s housing market appears to have been gradually increasing over the specified time period. Here’s the month-by-month breakdown:
- June 2024 (0.2%): A modest increase of 0.2% is expected in June 2024, which is in line with the current trend of moderate growth.
- Q3 2024 (0.4%): Forecasts call for a slightly higher increase of 0.4% in the third quarter (July-September 2024), which could indicate a slight increase in buyer activity during the traditional summer selling season.
- 2025 (1.3%): The most notable increase is projected for 2025, at 1.3%, suggesting a return to a more robust market pace next year.
Bust or boom? Finding the balance
Forecasts predict continued growth, but a surge is unlikely. A gradual increase would suggest the market is finding an equilibrium point. A crash is also unlikely, for the following reasons:
- Fundamental Affordability: McAllen’s housing market remains significantly more affordable than the national average, and this affordability will likely continue to attract buyers and prevent prices from dropping too quickly.
- Stable local economy: McAllen is located in the Rio Grande Valley, which has a diversified economy with thriving healthcare and manufacturing industries. This relatively stable economy provides the foundation for continued housing demand.
Important considerations:
It is important to remember that forecasts are based on projections and can be affected by unforeseen circumstances. Factors that may affect the McAllen market include:
- National economic trends: A significant downturn in the national economy could erode buyer confidence and slow growth in the McAllen market.
- interest Fluctuating interest rates: Rising interest rates can make mortgages more expensive, affecting your ability to make mortgage payments and slowing the market.
- Community Development Projects: Major infrastructure projects and new business developments in McAllen could increase demand and drive up prices.
While forecasts suggest that McAllen’s housing market will gradually increase, a more comprehensive conclusion can be drawn by incorporating the views of local market experts, factors specific to McAllen’s various neighborhoods, and the overall economic climate.
Is the McAllen housing market expensive?
McAllen is actually considered to have a fairly affordable cost of living when compared to the national average. Here’s a breakdown of the main contributing factors to the cost of living:
- housing: Housing costs in McAllen are significantly lower than the national average: According to RentCafe, housing costs in McAllen are 43% lower than the U.S. average, and while home prices are rising, they’re still far below the national standard (39% lower, according to Redfin).
- Food and clothing: Everyday items like groceries and clothing are also cheaper in McAllen: PayScale estimates that grocery prices are 17% lower than the national average, and clothing prices are 13% lower.
- Transportation facilities: Transportation costs, including gasoline and public transportation, are also low in McAllen, 13% lower than the national average, according to PayScale.
However, there are some exceptions.
- utility: Utility rates in McAllen can be a little higher than the national average: According to Payscale, utility rates are about 5% higher.
Overall, McAllen has a relatively low cost of living, especially when it comes to housing. This affordability makes it an attractive option for many.
