The year-over-year median price decrease from Q1 2023 to Q1 2024 cannot be solely attributed to mortgage rates, as the difference was only about 0.3% to 0.4% lower last March.
A more significant factor is the nearly 188-square foot decrease in the average size of homes sold in Q1 2024 compared to Q1 2023. Despite the median $/SF of Devonshire home sales only falling by 5%, the median price dropped by 13%.
Additionally, there has been a slight uptick in the number of homes sold, accompanied by a substantial 40% increase in available inventory. This increased supply has intensified competition and exerted downward pressure on prices, contributing significantly to the decline in median sales price.
Looking ahead, it's an opportune time to invest in the Devonshire community, as once fully developed, the available new supply in the area will likely tighten, driving home values up. Local infrastructure investment and retail development in the greater Forney area are expected to support home prices as the region reaches more mature economic growth stages. The increase in the average mortgage interest rate to 6.6% by the end of 2023 did contribute to the decline in prices, but the anticipation of lower rates next year could facilitate increased homebuying activity and potentially stabilize prices.
