The McAllen housing market in 2024 is presenting a mixed picture for potential buyers and sellers. While home values continue to rise steadily, the market has transitioned from a seller's frenzy to a more balanced state. Let's delve into the key trends shaping McAllen's real estate landscape this year.

McAllen, TX Housing Market Trends 2024

Price Trends: A Moderate Rise

Data from various sources like Zillow and Redfin suggests that McAllen's home values have experienced a moderate increase in 2024. Zillow reports an average home value of $225,857, reflecting a 5.9% rise year-over-year. While Redfin shows a slightly lower median sale price of $276,000, it 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 Options for Buyers

One of the most significant changes in the McAllen market is the rise in available inventory. According to Movoto, there were 798 active listings in May 2024, a considerable increase compared to previous years. This shift indicates a cooling down of the seller's market that dominated 2023. Realtor.com further confirms this by declaring McAllen a buyer's market in May 2024, meaning there are more houses for sale than there are buyers actively looking. This translates to potentially more leverage for buyers in terms of negotiating price and sale terms.

Time on Market: Finding Equilibrium

The days on market (DOM) metric provides valuable insight into the buying process. Redfin reports that McAllen homes are currently selling after an average of 55 days on the market. While this is higher compared to the brisk 36-day average in 2023, it suggests a more balanced market. Movoto also shows an average selling time of 42 days, indicating a return to a more normal pace after the fast-moving market of the previous year.

Affordability: A Relative Advantage

McAllen's median sale price remains significantly lower than the national average. Redfin reports McAllen's median sale price to be 39% lower than the national benchmark. This affordability factor continues to attract buyers, particularly those priced out of more expensive housing markets.

Looking Ahead: Factors to Consider

While the McAllen market seems to be stabilizing, several factors could influence its future trajectory. Rising interest rates, national economic trends, and local developments are all aspects to keep an eye on. Additionally, specific neighborhoods within McAllen may experience their own unique market dynamics.

McAllen, TX Housing Market Predictions 2024

The McAllen housing market in 2024 has presented a shift from the seller's frenzy of previous years. While home values are still rising, a more balanced market is emerging. But what does the future hold? Let's delve into the McAllen Metropolitan Statistical Area (MSA) forecast for the next few months and 2025, based on the provided data (assuming its accuracy).

Forecast Breakdown: A Gradual Rise

The data by Zillow suggests a gradual increase in McAllen's housing market over the specified period. Here's a month-by-month breakdown:

• June 2024 (0.2%): A modest increase of 0.2% is expected for June 2024, which aligns with the current trend of moderate growth.
• Q3 2024 (0.4%): The forecast predicts a slightly higher rise of 0.4% in the third quarter (July-September 2024). This could indicate a small uptick in buyer activity during the traditional summer selling season.
• 2025 (1.3%): The most significant increase is projected for 2025, with a 1.3% rise. This suggests a potential return to a more robust market pace next year.

Crash or Boom? Finding Equilibrium

While the forecast indicates continued growth, it's unlikely to be a boom. The moderate increases point towards a market finding its equilibrium. Here's why a crash is also improbable:

• Underlying Affordability: McAllen's housing market remains significantly more affordable than the national average. This affordability is likely to continue attracting buyers, preventing a drastic decline in prices.
• Steady Local Economy: The Rio Grande Valley, where McAllen is situated, boasts a diversified economy with a strong healthcare and manufacturing presence. This relative economic stability provides a foundation for continued housing demand.

Important Considerations:

It's crucial to remember that forecasts are based on predictions and can be influenced by unforeseen circumstances. Here are some factors that could impact the McAllen market:

• National Economic Trends: A significant downturn in the national economy could potentially dampen buyer confidence and slow down the McAllen market.
• Interest Rate Fluctuations: Rising interest rates could make mortgages more expensive, impacting affordability and potentially slowing down the market.
• Local Development Projects: Major infrastructure projects or new business developments in McAllen could increase demand and push prices upward.

While the forecast suggests a gradual rise in McAllen's housing market, a more comprehensive conclusion can be drawn by incorporating insights from local market experts, factors specific to different McAllen neighborhoods, and the overall economic climate.

Is the McAllen Housing Market Expensive?

McAllen is actually considered quite affordable compared to the national average. Here's a breakdown of some key cost-of-living factors:

• Housing: McAllen boasts housing costs significantly lower than the national average. RentCafe reports McAllen housing to be 43% cheaper than the U.S. average. While home prices have risen, they remain well below the national benchmark (reported as 39% lower by Redfin).
• Groceries and Clothing: Everyday essentials like groceries and clothing are also cheaper in McAllen. Payscale estimates grocery prices to be 17% lower and clothing costs 13% lower compared to the national average.
• Transportation: The cost of transportation, including gas and public transport, is also lower in McAllen, with Payscale indicating it's 13% cheaper than the national average.

However, there are some exceptions:

• Utilities: Utilities in McAllen can be slightly more expensive than the national average. Payscale reports them to be around 5% higher.

Overall, McAllen offers a relatively low cost of living, particularly when it comes to housing. This affordability makes it an attractive option for many people.