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 10 homes pending, with only 1 home sold in the last two weeks, averaging a sale price of $115 a square foot. One home sold over the asking price.
Compared to the two weeks prior, we haven’t seen big changes in the market. The average sales price in the neighborhood is $435,000. 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.
I know the interest rates rising has been one deterrent from some buyers purchasing right now, but that isn’t your ideal buyer anyways! And the educated buyer still knows, they need to buy ASAP. 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.
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
GOOD NEWS, BAD NEWS… The Fed only hiked the rate by 0.50%—good news—but estimated their final rate would top 5%—bad news—and indicated they wouldn't pivot to rate cuts during 2023. Stocks dropped.
Investors feared the Fed's commitment to sit on an elevated rate until inflation fell to 2% would trigger a recession. Disappointing Retail Sales and Industrial Production data made it look like we're headed in that direction.
But CPI inflation saw a lower-than-expected monthly rise, and a big drop from 7.7% to 7.1% year-over-year, so inflation is clearly slowing. Plus, initial jobless claims fell by 20,000.
The week ended with the Dow down 1.7%, to 32,920; the S&P 500 down 2.1%, to 3,852; and the Nasdaq down 2.7%, to 10,705.
Bond prices overall showed some strength, although the UMBS 5.5% slipped 0.13, to $101.13. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate dropped for the fifth straight week. 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 expects the median home price will stay flat in 2023, up just 0.3%, to $385,800, noting “half of the country may experience small price gains, while the other half may see slight price declines.”
Market Forecast
HOME BUILDING, HOME SALES, INFLATION, GDP… Both Housing Starts and Building Permits are expected to report small dips in November. New and Existing Home Sales are also forecast to be off a tad. Gaining, unfortunately, should be PCE Prices, the Fed's favorite inflation measure. The GDP-Third Estimate for Q3 is predicted to come in unchanged.
Friday December 23, the stock markets are open, but the bond markets close early in observance of Christmas Eve. Monday December 26, all financial markets are closed in observance of Christmas Day.
Summary
Last week, the Fed’s decision to slow the pace of rate hikes from 0.75% to 0.50%, along with lower-than-expected consumer price inflation, sent mortgage rates lower. Both signaled that inflation may be starting to cool.
Freddie Mac confirmed: “Mortgage rates continued their downward trajectory this week…. The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand.”
The Mortgage Bankers Association chimed in with the view that declining rates should “encourage more homebuyers to return to the market in early 2023,” as overall mortgage applications already rose 3.2% last week.
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/
• Download our Moving to Texas ebook! http://byjoandco.com/movingtotexasebook.
• Download our Where to Live in Houston Texas ebook! http://byjoandco.com/wheretoliveebook.
• Browse our Ebooks and Relocation Guides: http://byjoandco.com/ebooks
• Schedule a phone call or appointment with us! http://byjoandco.com/appointment.
• Email us! [email protected].
• Looking for a buyer’s agent? Fill out our buyer questionnaire! http://byjoandco.com/q.
• Ready to find your dream home? Search, http://search.byjoandco.com.
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