Hi neighbor, Today I will be sharing with you our perspective on the local real estate market here in Houston, Texas, specifically a market update for the 77070 Zip Code. 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 77070?
We currently have 9 homes pending, with 4 homes sold in the last two weeks, averaging a sale price of $143 a square foot. Four homes sold over the asking price, with one home selling 2.3% above the listing price. Compared to the two weeks prior: Homes sold are slightly down from 15 sold, but the average sales price is up to $440,000 ($387,813 previously). Every home is different, with different features, so don’t forget to ask us for your annual equity review if you are curious about your personal home. You can text AER to 79564 or email us here.
If we look at how fast the move-in-ready (modern) homes are going (must not be overpriced), the supply in this area has not surpassed the demand, making it still a great time to sell. Buyer agents around Houston are seeing a slow in the real estate market, but it isn’t affecting every neighborhood. I know the interest rates rising has been one deterrent from some buyers purchasing right now, but that isn’t your ideal buyer anyways!
The most desirable homes in the area are still selling the first weekend or first week they hit the market (a really good coming soon campaign, like we do at Jo & Co. allows you to sell faster, for more money).
Check out the graphic below for a larger overview of the real estate market for the last two weeks in 77070.
What is happening in the real estate market nationally?
Mortgage rates trended slightly higher last week. New home sales fell in July, bringing more balance between buyers and sellers. Mortgage application submissions saw a composite decrease. Pending home sales were better than expected in July. Both continuing and initial jobless claims fell. The Q2 GDP estimate was slightly higher this month. Core inflation cooled, personal income increased, and consumer spending inched up.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Will student loan forgiveness boost homeownership? Listen Now >>
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Market Recap
- New home sales slipped 12.6% month-over-month in July, down to a seasonally adjusted annual rate of 511,000. Many economists believe that the steady decline in new home sales is one of many signs pointing to an economic slowdown, which typically brings lower interest rates. Buyers and sellers say normalcy is finally returning to the market.
- Mortgage application submissions fell a composite 1.2% during the week ending 8/19. Refinance application submissions dropped 3% while purchase application submissions dropped 1%.
- Pending home sales were better than expected in July — falling 1% rather than 4%. In June, pending sales slid nearly 9%. The much smaller drop in July is partly due to the cooling mortgage rates in recent months. According to NAR Chief Economist Lawrence Yun, “we may be at or close to the bottom in contract signings,” suggesting they could begin to increase again in the coming months.
- Continuing jobless claims decreased to a level of 1.42 M during the week ending 8/13. Initial jobless claims decreased as well during the week ending 8/20 – dropping by 2,000 to a level of 243,000.
- The GDP estimate for the second quarter of 2022 was at -0.6% — slightly higher than the previous estimate of -0.9%.
- Core inflation according to the PCE index was at a level of 4.6% year-over-year in July – down from 4.8% in June. Month-over-month core inflation increased just 0.1%. Including energy and food, the regular PCE index decreased 0.1% month-over-month. Personal income increased 0.2% month-over-month in July, while consumer spending slowed to a 0.1% monthly increase.
Review of Last Week
FED CHAIR SPOOKS STOCKS… At the Fed's annual Jackson Hole Symposium, Chair Jerome Powell confirmed rate hikes would continue “until the job is done” of getting inflation down to 2%. Stocks tanked big time and with good reason.
Powell: “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.” But that won't restrain him.
Inflation did show signs of moderating. PCE Prices retreated to 6.3% annually, Core PCE (excluding food and energy) dipped to 4.6%. Michigan Consumer Sentiment rose to 58.2, but that's down from 70.3 a year ago.
The week ended with the Dow down 4.2%, to 32,283; the S&P 500 down 4.0%, to 4,058; and the Nasdaq down 4.4%, to 12,142.
Bonds fell sharply, the 30-year UMBS 4.5% down 0.79, to $99.31. After declining last week, the national average 30-year fixed mortgage rate sprang back up 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… The National Association of Realtors reports the inventory of unsold existing homes rose to 1.31 million by the end of July, or the equivalent of 3.3 months at the current monthly sales pace.
Market Forecast
CONSTRUCTION SPENDING, MANUFACTURING, JOBS ALL SLOW… For July, Construction Spending is expected to slip a bit overall, but we'll see how the residential part fares. The ISM Manufacturing Index should still show expansion in that sector, but at a slower rate. The same goes for July Nonfarm Payrolls where job growth is forecast to diminish.
Summary
New Home Sales fell 12.6% in July, hitting the lowest sales rate since 2016, put to declining affordability. But inventory rebounded to the highest level since 2008, translating to 10.9 months of supply, up 81.7% from a year ago.
The Pending Home Sales index of signed contracts on existing homes dipped just 1.0% in July. The National Association of Realtors Chief Economist feels, “we may be at or close to the bottom in contract signings.”
Freddie Mac notes: “The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market.” But “there are still potential homebuyers on the sidelines waiting to jump back into the market.”
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.
We are so happy you found our little corner of the interwebs. We look forward to y'all reaching out to us. We love to answer questions and welcome them. Recently we created some local maps, and you can download those by clicking the image/link above. Below, you will find an index of some very helpful information to assist you in learning more about the Houston suburbs. If you are relocating to our neck of the woods, we hope you reach out to us, because we would love to help you by being your local realtor and friend. Thoughtfully written for you. Hugs, Jo.
We are Waiting for You
If you are looking to relocate to the Houston Area, we would love to meet you, and hear your story. Below you will find all of my contact information, as well as some homes for sale in the area. We truly look forward to hearing from you! P.S. Don't forget to check out our YouTube Channel!
If you are overwhelmed..
Now if you are feeling overwhelmed on where you should plant your roots, I would love to talk to you. You can schedule a call with me by click this link: http://byjoandco.com/call or just send us an email: [email protected]. There are some amazing communities all over the Houston suburbs. In this post, https://search.byjoandco.com/blog/best-neighborhoods-in-houston/, I deep dive into all the different suburbs/neighborhoods that you might want to consider, and why. There are many resources here, so please reach out if you are curious what to look at next! Thank you for trusting us.
What next?!
• Navigate our Blog: https://byjoandco.com/categories-to-help-you-navigate-the-blog/
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