Abilene Housing Insights: November 2024

As we near the end of 2024, the Abilene housing market has shown signs of stability, even while activity has cooled slightly compared to earlier in the year. Inventory levels, which peaked at 4.9 months in September, have settled to a balanced 4.5 months in November. New listings have begun to slow following the rapid growth seen in Q2 and Q3, while buyer demand continues to fluctuate alongside interest rates. This is a return to a more normalized market, with steady appreciation and inventory levels resembling pre-pandemic trends. If these patterns continue, we can expect annual appreciation in the 2-4% range, with inventory holding between 4-5.5 months—a healthy, balanced environment for buyers and sellers alike.

Interest Rates and Market Impact

Volatile interest rates remain a significant factor in the current market. Rates have seen sharp fluctuations in the second half of 2024, though they are still slightly improved from earlier highs. Experts predict we’ll see further decreases in 2025, with rates potentially stabilizing in the high 5% range. However, it’s important to note that the historic low rates of the COVID era are unlikely to return, so buyers and sellers must adapt to this new reality.

New Construction Trends

One of the more notable trends this year has been the slowdown in new construction. Listings for newly built homes are down nearly 20% year-over-year as the cost of construction materials remains high and demand has softened. In response, we’ve seen the rise of national builders focusing on smaller, more affordable homes to meet mid-range buyer demand. This is a key development, as it helps bridge the gap in affordability for families looking to enter the market.

Affordability: Abilene vs. Texas

Abilene continues to shine as an affordable option compared to the broader Texas housing market. In November 2024, the median home price in Abilene was $239,000—28% lower than the state median of $333,000. This affordability translates to significant value for homebuyers looking to settle in a vibrant, growing community. Abilene’s affordability and balanced market conditions make it an exceptional place to buy and sell real estate, offering homeowners both value and opportunity.