Hi neighbor, Today I will be sharing with you our perspective on the local real estate market here in Magnolia, Texas, specifically a market update for the 77354 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 77354?
We currently have 56 homes pending, with 20 homes sold in the last two weeks, averaging a sale price of $214 a square foot. Twenty homes sold over the asking price, with one home selling 8% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 23 sold, but the average sales price is up to $654,699 ($577,472 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 demand in this area has not surpassed the supply, 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 77354.
Deep Dive on Home Prices Trajectory
What is happening in the real estate market nationally?
Mortgage rates trended higher last week. Home builder sentiment slipped lower in October, mortgage application submissions decreased, building permits increased, and housing starts fell. Continuing jobless claims increased while initial jobless claims fell. Existing home sales
slipped slightly.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Buyers are in a much better position than a few months ago. Read Now >>
- How will inflation data continue to affect mortgage rates? Listen Now >>
- For-sale homes are spending more time on the market. Read Now >>
Market Recap
- Home builder sentiment decreased to a level of 38 in October, lower than the expected level of 44. All three components dropped on the NAHB housing market sentiment index – current sales conditions fell 9 points to 45, sales expectations in the next six months dropped 11 points to 35, and prospective buyer traffic decreased 6 points to 25.
- Mortgage application submissions fell 4.5% during the week ending 10/14. Refinance application submissions decreased by 7% and purchase application submissions decreased by 3%.
- Building permits increased 1.4% month-over-month in September to a seasonally adjusted annual rate of 1.56 million units. Experts had predicted a decrease to 1.53 million units. Housing starts fell 8.1% month-over-month to a seasonally adjusted annual rate of 1.44 million units.
- Continuing jobless claims increased by roughly 20,000 during the week ending 10/8, climbing to a level of 1.39 million. Initial jobless claims decreased by 12,000 to a level of 214,000 during the week ending 10/15.
- In September, existing home sales were at a seasonally adjusted annual rate of 4.71 million units, a 1.5% decline from August but a higher-than-expected level according to economists’ expectations.
Review of Last Week
UP DOWN UP… After rallying midweek on the Fed's dovish rate hike comments and improved inflation data, then tanking on Friday's better-than-forecast November jobs report, stocks still finished ahead for the second week in a row.
Investors loved hearing Fed Chair Powell say rate hikes could moderate “as soon as December.” This was followed by PCE Price inflation dropping from September's 6.2% annual rate to 6.0% in October.
But Friday's November jobs data–higher-than-expected 263,000 new Nonfarm Payrolls and 5.1% annual wage growth–showed the Fed still has a ways to go before its rate hikes cool the labor market and inflation along with it.
The week ended with the Dow UP 0.2%, to 34,430; the S&P 500 UP 1.1%, to 4,072; and the Nasdaq UP 2.1%, to 11,461.
Bonds had another strong week overall, the UMBS 5.5% UP 0.95, to $101.22. With bond prices up, rates go down, and the national average 30-year fixed mortgage rate fell again 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 conforming loan limit–the maximum mortgage amount Fannie Mae or Freddie Mac will guarantee–goes up in 2023 to $726,200 in most counties and to $1,089,300 in designated high-cost areas, as well as in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
Market Forecast
DATA ON THE SERVICES SECTOR, WHOLESALE PRICES, THE CONSUMER… Expect November's ISM Non-Manufacturing Index to recede but remain above 50, in growth territory. Unfortunately, November wholesale price inflation is also forecast to grow, according to the Producer Price Index (PPI). Analysts predict the preliminary December read on University of Michigan Consumer Sentiment will remain at historically low levels.
Summary
October Residential Construction was just a smidge below September’s read, at a seasonally adjusted annual rate of $887.2 billion . This is still 8.6% ahead of a year ago, with growth focused on the multifamily sector.
The Pending Home Sales index of signed contracts on existing homes slipped in October. But the NAR sees “a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
Homebuyers on the sidelines should note those lower rates, along with the growing active inventory (49% above a year ago) that’s giving them more choices. Plus, Case-Shiller home price gains have now decreased six months in a row.
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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