Midlothian Real Estate Market Forecast 2023

Midlothian Real Estate Market Forecast 2023

Midlothian, a suburb of Dallas found in Ellis County, has a population of around 31,533. As one of the greatest places to live in the state of Texas, Midlothian gives its inhabitants a rural feel not far from big city amenities. With highly rated public schools, the town is family-friendly and serves as an ideal place for both families and young professionals to put down roots.
For people looking to explore the Midlothian housing market, it is advantageous to have an idea of what the real estate market will do in the future. While it is, of course, impossible to be certain about predictions of the future, real estate experts can look at how the market changed in the past and evaluate current market trends to come up with an educated idea of how it will shift in the future. Here is the forecast for the real estate market of 2023 for those looking at homes for sale in Midlothian, Texas.

The current housing scene

According to the most recent housing reports by the MetroTex Association of Realtors, the median price of homes in Ellis County has risen 15.3% from November 2021 to November 2022. Currently, the median price sits at $415,000.
Additionally, the number of active listings has also increased substantially. As of November 2022, there are 897 active listings in Ellis County. This is a 133% increase over the year prior. It’s also important to note that the number of closed sales has decreased by 23%, with just 228 closed sales in November 2022. In addition, homes are spending an average of 56 days on the market before selling, compared to 39 days in November 2021. There are currently 3.9 months of inventory available, compared to just 1.4 months in November 2021. All of these trends mirror the cooling off of the market, as many buyers are hesitant to enter the house hunt due to rising mortgage rates and economic uncertainties nationwide.
As of July 2022, the total number of houses on the market in the Dallas-Fort Worth area, when compared to a year previously, had risen by 81%. Usually, higher inventory levels mean sellers reduce the prices of their houses, and the number of multiple offers and bidding wars decreases. These trends often tip the market in the buyer’s favor, as the buyers now have more homes to choose from and less competition with each other. Because of this, the market could shift into more balanced conditions as we look ahead to 2023.
With that said, many of the homes coming onto the market are still expensive, as the average value of housing has continued to rise, as discussed. In this case, sellers are more willing to negotiate on the price, partially due to current economic conditions like rising inflation, but buyers may also be hesitant to buy. This may end up creating what is called a housing glut, which is a market where there are more houses for sale than people willing to buy them.

Changes in interest rates

Recently, the market has been slowing down due to a rise in interest rates, and the trend is expected to continue into the following year. Since January 2022, rates have almost doubled, even though they are still thought to be lower than the historical average.
Even if the rates do not climb higher, the fact remains they have already risen considerably, and this is causing the market to cool as many buyers are priced out of the market. The trend is likely to continue into 2023, making buying a house more expensive and leading to less demand for housing as many buyers wait by the sidelines.

Price fluctuations and predictions

While many economists agree that housing prices are going to fluctuate in the coming year, they disagree about whether prices are going to rise or fall. The analysts who believe the prices will rise point to the record-breaking high prices of the summer of 2022. These analysts predict that home prices will continue to rise into 2023, although they admit that the increase will probably be slower than what we saw during the previous year. The rising prices will even further slow down the real estate market, as higher prices often lead to fewer buyers.
On the other hand, some experts believe that housing prices will drop in 2023. A group that conducts economic surveys and research called Capital Markets predicts housing prices will decrease, while inflation and loan interest rates will increase. Because of the rising interest rates, people will be less willing or unable to get loans and therefore, become less likely to buy a house. To compensate and attract buyers, sellers will lower the listing price on their homes or be more willing to negotiate with those who come in with lower offers.
In July of 2022, the median price of housing in metro areas nationwide was found to be down by 2.9% compared to the previous month, even though they were still up when compared to July 2021. The Dallas metro area, in particular, saw a year-over-year decrease of 1.9% in median sale prices. In addition, over the past year, the number of Dallas Fort Worth listings with a price reduction rose by approximately 17%.
Due to this evidence and the rising inventory levels and homes spending longer on the market, experts speculate that the market will continue to cool down and that prices will continue to fall into 2023. Unlike in 2021, when houses often sold for well above the asking price, now sellers are increasingly lowering their asking prices to attract more buyers. In other words, the Dallas and Midlothian real estate market is shifting into a buyer’s market.

Eric Gerald Enge

If you’re looking for homes for sale in Midlothian, TX, reach out to Eric Gerard Enge for the guidance you can count on. Eric has more than 15 years of experience in multiple areas, including real estate, customer service, and finance. Working hard to provide excellent service at all times, he and his team are dedicated to helping their clients navigate the real estate market, guiding them through every step of the buying or selling process from beginning to end. Contact Eric Gerard Realty today to learn more about what the team offers and get started hunting for your dream house.

*Header photo courtesy of Shutterstock

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