Hi neighbor, Today I will be sharing with you our perspective on the local real estate market here in Spring, Texas, specifically a market update for the neighborhood of Terranova. Whether you are looking to buy, sell, or just keep an eye on the market, we look forward to being your resource.
What is happening in the real estate market in Terranova?
We currently have 5 homes pending, with 2 homes sold in the last two weeks, averaging a sale price of $118 a square foot. Two homes sold over asking price, with one home selling 1.5% above the listing price. It is important to note that most homes are going to sell 5-7% over asking price in Terranova, and sometimes all the way up to 10% over asking price. Move in ready inventory has been down, but we are seeing an uptick.
Compared to the two weeks prior: Homes sold are up, but the average sales price per foot is down. This could be a fluke, so we will be sure to keep an eye on it over the next couple of weeks. If we look at how fast the move in ready homes are going the supply in this area has not surpassed the demand, making it still a great time to sell. We cannot pinpoint another time in history where you were almost guaranteed to get over your homes current market value.
Buyers agents around Houston are seeing a slow in the real estate market, but it isn't affecting the neighborhoods with such high demand, like Terranova, so that is good news for anyone that waited until summer to sell. I know the interest rates rising has been one deterrent from some buyers purchasing right now, but with how healthy the prices are in Terranova, it shouldn't affect us too much.
P.S. The median days on market historically has been very low, but right this second we are lacking that move in ready inventory, which means any home that becomes listed that is move in ready, will go fast and well over asking price.
Check out the graphic below for a larger overview of the real estate market for the last two weeks in Terranova.
What is happening in the real estate market nationally?
Mortgage rates trended downward last week. New home sales decreased, as did mortgage application submissions. Continuing jobless claims increased slightly while initial jobless claims fell. The GDP estimate for Q1 of 2022 dropped. Pending home sales declined as well. Inflation according to the PCE index showed a slower pace. Personal income increased as did consumer spending.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Sandra Thompson is confirmed as FHFA director. Read Now >>
- What does the future of home prices hold? Watch Now >>
- Openings may emerge for hopeful buyers as market cools. Read Now >>
Market Recap
- New home sales slipped in April, falling 16.6% to a seasonally adjusted annual rate of 591,000. After their large spike in the beginning of the COVID pandemic, the rate of new home sales is finally starting to stabilize, returning to its pre-pandemic levels.
- Mortgage application submissions fell 1.2% during the week ending 5/20. The Refinance Index decreased 2% while the Purchase Index remained unchanged.
- Continuing jobless claims increased slightly during the week ending 5/14, rising to a level of 1.35 million. Initial jobless claims decreased to a level of 210,000 during the week ending 5/21.
- The GDP estimate for quarter one of 2022 fell 1.5%.
- Pending home sales decreased 3.9% in April, with the pending home sales index falling to a level of 99.3.
- The PCE index showed a slower pace of inflation in April, up 0.2% month-over-month. This compares to the 0.9% increase in March. Year-over-year, inflation reached 6.3% — also lower than its level the previous month. Personal income increased 0.4% month-over-month in April while consumer spending increased 0.9% month-over-month.
Review of Last Week
REBOUND… After seven straight weeks of declines, the three major stock indexes bounced back sharply on news of positive retail earnings, hints the Fed may slow rate hikes, and signs inflation may be peaking.
All was not copacetic, however, as University of Michigan Consumer Sentiment fell from 82.9 a year ago to 58.4, its lowest level in 10 years. Continuing jobless claims rose and new home sales cratered.
But, hey, the Fed's favorite PCE Prices inflation measure slowed to 6.3% from 6.6% in March, indicating rising prices may have peaked. And minutes from the Fed's May confab suggested rate hikes could ease in September.
The week ended with the Dow UP 6.2%, to 33,213; the S&P 500 UP 6.6%, to 4,158; and the Nasdaq UP 6.8%, to 12,131.
Bond prices overall rose strongly for the week, the 30-year UMBS 4.5% UP 0.85, to $102.04. Higher bond prices signal lower rates, so the national average 30-year fixed mortgage rate fell for the second straight week in Freddie Mac's Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Since December, increased home prices and mortgage rates have resulted in a 42% boost in monthly payments for a median priced new home with a 30-year mortgage and a 20% down payment.
Market Forecast
CONSTRUCTION SPENDING GAINS, MANUFACTURING, SERVICES, AND JOB GROWTH SLOWS… April Construction Spending should come in stronger overall but we'll monitor the residential part of the data. The ISM Manufacturing and ISM Services Indexes are expected to show slower rates of growth in May, same as the number of new Nonfarm Payrolls in Friday's jobs report.
Summary
New Home Sales dove 16.6% in April, falling for the fourth straight month, to a 591,000 annual rate, down 26.9% from a year ago. The big drop was blamed on declining affordability due to higher mortgage rates and home prices.
The National Association of Realtors Pending Home Sales index of signed contracts on existing homes fell 3.9% in April. But they noted, “There is an ongoing housing shortage, and properly listed homes are still selling swiftly.”
Realtor.com reports that active listings posted size-able gains for the first time in three years—up 5% versus a year ago. The number of sellers has grown year-over-year six of the last seven weeks, as inventory gradually builds.
Can we sell yours?
So if you are in need of a listing agent, we would love the opportunity to see your home and meet you of course. My husband, Edward, and I, look forward to being the brokerage and team for you! You can reach out to us via email: [email protected] & [email protected] or telephone: 832-493-6685.
Read more:
If you are curious ‘How to get more money for your home when listing it for sale', check out this blog post.
I hope you have found this blog post super helpful. If there is anything else we can do for you, including helping you sell (or buy) a home, I would be honored to assist. I hope you have a great day/evening. Cheers, E + J.
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