Real Estate Trends in Forest Hills, Dallas, TX: A Year in Review and Future Outlook
Forest Hills, experienced significant changes in its real estate market in 2023. Analyzing key metrics provides valuable insights into the market's dynamics and potential trends for the upcoming year.
**Median Sales Price and Market Trends:**
The neighborhood concluded 2023 with a median sales price of $845,000, indicating a 13% decline from the previous year and a notable 16% drop from the market peak in 2021. However, when compared to the aftermath of the 2008 Great Recession, the current median price represents an impressive 110% increase, showcasing the area's resilience and recovery over the years.
**Days on Market and Inventory Challenges:**
A noteworthy shift occurred in the average days on market, rising to 41 days, which is 18 days longer than in 2022. This increase is attracting attention, especially in the context of falling interest rates and a scarcity of available properties for sale. With fewer than 90 days considered a seller's market, Forest Hills is facing challenges as it inches towards a more balanced market.
**Lowest Homes Sold Since 2008:**
The number of homes sold in 2023 was the lowest since data tracking began in 2008, with only 10 homes sold. This marked a decline of 5 homes from the previous year and a substantial drop of 12 homes compared to 2008. The low inventory in Forest Hills and the wider DFW area appears to be a persistent issue, influencing sales figures and contributing to the competitive market conditions.
**Sales Price Distribution and Future Predictions:**
Sales price distribution revealed weaknesses, with 20% of homes sold in 2023 falling below the $600,000 range. The consecutive two-year decline in the median home sales price suggests a potential for further price decreases in 2024. This trend may impact the market dynamics and buyer-seller negotiations in the coming year.
**Outlook for 2024:**
Looking ahead to 2024, Forest Hills is expected to maintain a seller's market. Falling interest rates, with a 6.61% rate for a 30-year fixed mortgage as of December 31, 2023, will likely provide home sellers with favorable equity outcomes. However, the market may not witness the intense bidding wars seen in previous years. Affordability remains a challenge for buyers, as median home values hover around $845,000 in Forest Hills. Sellers considering listing their Forest Hills homes are encouraged to collaborate on effective strategies to navigate the evolving real estate landscape.
In conclusion, Forest Hills' real estate market is characterized by a decline in prices, extended days on market, and challenges posed by low inventory. As the neighborhood heads into 2024, stakeholders should remain vigilant and adaptable to capitalize on opportunities and mitigate potential risks in this dynamic real estate environment.
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Forest Hills Historical Real Estate Trends
The sales price distribution trend for Forest Hills is the pattern and distribution of home sale prices. The trend illustrates how properties are priced and sold across various value ranges, providing insights into the overall market dynamics and buyer/seller behavior.