High Sales Volumes: Home sales in Devonshire continued at a brisk pace in the third calendar quarter of 2024 (Q3 2024), with 89 closings from July through September. This quarterly sales volume, while down 6% from Q2, was up 24% compared to Q3 of 2023. Sales volumes are typically higher in the summer months, reflecting a seasonal trend that has been consistent over the years. The community currently has about 2,700 homes and is expected to reach a total size of approximately 4,000 homes eventually.
Larger Homes: Interestingly, new homebuyers in Devonshire are increasingly opting for slightly larger homes. The average square footage of homes sold in Q3 2024 increased to 2,561 from 2,425 in Q3 2023. This trend could be attributed to several factors. One possibility is that builders are offering more spacious homes, catering to the growing demand for larger living spaces. Another factor could be the falling mortgage rates, which have made it more affordable for buyers to purchase bigger homes.
Longer Time on Market: Despite the brisk sales pace, it’s taking longer to sell homes in Devonshire. The median days on market (DOM) for homes sold in Q3 2024 increased to 71 days, compared to 51.5 days a year ago. This increase in DOM could be due to a variety of reasons, including buyers being more selective or waiting for better deals as mortgage rates fluctuate.
Median Home Prices Flat: The median home price in Q3 2024 was $410,000, which is 2% higher than the previous quarter but still down 1% from Q3 2023. This slight decrease in year-over-year prices might be influenced by the steady supply of homes and the cautious approach of buyers amid economic uncertainties.
Mortgage Rates Decline: Mortgage rates have seen a significant drop, falling to 6.08% from a one-year high of 7.79%. This reduction in rates has likely encouraged more buyers to enter the market, although some are still waiting on the sidelines for further rate cuts and more stability post the upcoming election cycle.
Builders’ Strategies and Market Expectations: Builders in Devonshire are determined to maintain their sales volumes at around 90 closings per quarter. This consistent supply is helping to keep prices relatively stable, despite the fluctuations in demand. The builders’ strategy seems to be focused on sustaining sales volumes rather than pushing for higher prices, which could be a response to the current economic climate and buyer behavior. Many buyers are rumored to be waiting for further rate cuts and the resolution of political uncertainties before making their purchase decisions. This cautious approach is understandable, given the potential for significant economic policy changes following the November elections.
Future Market Outlook: Looking ahead, we expect an uptick in home prices as the Federal Reserve continues its rate-cutting measures through 2025. Both political parties have announced expansionary economic policies on their campaign trails and debates, which could stimulate the housing market further. While the Devonshire housing market has seen some fluctuations in sales volume, home sizes, and days on market, the overall trend remains positive. The combination of falling mortgage rates and builders’ strategies to maintain sales volumes is likely to keep the market dynamic and attractive for both buyers and sellers. As we move into the next quarter and beyond, the market’s response to economic policies and political developments will be crucial in shaping its future trajectory.
For personalized real estate advice from a Devonshire expert, call Brendan Hirschmann, REALTOR® at 972-559-4648. Brendan can provide you with the insights and guidance you need to navigate the current market trends and make informed decisions.