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 Memorial Northwest. 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 Memorial Northwest?
We currently have 7 homes pending, with 5 homes sold in the last two weeks, averaging a sale price of $117 a square foot. Five homes sold over the asking price, with one home selling 2% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 6 sold, but the average sales price is up to $457,300 ($453,333 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 Memorial Northwest.
Jo's Two Cents
The interest rates the last couple of weeks have been playing games, but all analysts are still pointing to interest rates dropping significantly this summer. I personally am not holding my breath, but still hopeful.
Sales (clients going under contract) at Jo & Co. were super strong the months of March and April. We are seeing a little slow down, but we expect things to pick back up once graduations and the last day of the semester are behind us.
New construction sales are still our strongest. Nationally this is a huge trend in cities with high amounts of inventory. Montgomery and Fort Bend our our most popular counties, with the Harris county portions holding Katy and Cypress in the top three list. The most popular school districts have been Katy ISD and Cypress ISD.
The biggest reasons why folks are choosing new construction is low cost of maintenance, low electricity bills, large builder incentives, many options to choose from, flexible close dates, master planned community amenities, a high concentration of people in the same stage of life, and who doesn’t love brand new!
In general though, the greatest problem affecting the real estate market is the lack of inventory. So a really popular question on the mind of others is, “if I sell my home, where do I go?” And lucky for us in the Houston area, new construction is a big option. I would never encourage someone to sell, if the home they desired wasn’t also available.
Correcting LLPA Misinformation
You may have seen conflicting stories regarding the changes due to Loan Level Price Adjustments (LLPAs). LLPAs are risk-based pricing adjustments charged during loan origination that vary based on credit score, loan-to-value (LTV) ratio, the type of mortgage, and other factors.
We wanted to set the record straight for you. First, the changes only affect Conventional loans. Yes, LLPA fees for Conventional loan borrowers with higher credit scores increased slightly this year. However, the fees are still greater for borrowers with lower credit. The changes do not penalize homebuyers with good credit. The small percentage adjustments were made to help make homeownership more accessible for those with lower credit, but is not rewarding borrowers with low credit.
It is typical for these types of adjustments to be made. This chart highlights the percentage fee changes:
In general, here is a high-level summary of the new pricing matrix changes on Conventional purchase loans:
- Includes new credit bands beyond a 740 score (previously, anyone with a FICO score of 740 would pay the same fees as someone with a score of 780).
- Borrowers with better credit will still pay less than someone with worse credit.
- Borrowers with credit scores between 680 and 779 with down payments between 10% and 20% will see a fee increase.
- First-time homebuyers with low or moderate household income pay no added fees whatsoever.
- All borrowers who put less than 5% down across all FICO scores will benefit.
Questions? I would love to connect you with a local lender to help clear up any confusion.
What is happening in the real estate market nationally?
Last week, mortgage rates trended higher. Retail sales increased by a smaller-than-expected amount in April. Home builder sentiment saw the biggest jump in two years. Mortgage application submissions slipped. Building permits decreased in April while housing starts increased. Jobless claims fell.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Housing Wire lead analyst on the spring housing market. Listen Now >>
- Why is housing inventory so low? Pandemic refinancing. Read Now >>
- Now might be a good time to buy due to rising rent prices. Watch Now >>
Market Recap
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Retail sales increased 0.4% month-over-month in April.
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The National Association of Home Builders (NAHB) housing market sentiment index jumped a decent amount in May, surging past the expected level of 45 to reach a level of 50.
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Mortgage application submissions slumped a composite 5.7% during the week ending 5/12. Refinance application submissions decreased 8% while purchase application submissions decreased 4.8%.
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Building permits slipped slightly in April, falling 1.5% to a level of 1,416,000 million. Housing starts, on the other hand, climbed 2.2% to reach a level of 1,401,000 million.
- Building permits slipped slightly in April, falling 1.5% to a level of 1,416,000 million. Housing starts, on the other hand, climbed 2.2% to reach a level of 1,401,000 million.
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Continuing jobless claims decreased slightly to a level of 1,799,000 during the week ending 5/6 while initial jobless claims decreased by 20,000 to a level of 242,000.
Review of Last Week
MIXED SIGNALS BUT STOCKS RISE… News about the debt ceiling deal in Washington was up and down, with economic data to match, yet the up sentiment prevailed and all three stock indexes ended ahead for the week.
Traders got a weaker-than-expected Leading Economic Index and Existing Home Sales data. Retail Sales were up 0.4% in April, but basically flat after adjusting for inflation, indicating weakening consumer demand.
Yet April Housing Starts gained and manufacturing output bounced back. That data, along with lower-than-expected weekly Jobless Claims, suggest the Fed might be able to engineer a soft-landing for the economy after all.
The week ended with the Dow UP 0.4%, to 33,427; the S&P 500 UP 1.6%, to 4,192, and the Nasdaq UP 3.0%, to 12,658.
Money going to stocks sent bond prices down, the 30-Year UMBS 5.5% off 0.61, to $100.00. Freddie Mac's Primary Mortgage Market Survey showed the national average 30-year fixed mortgage rate edged up a tad. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Good news for first-time buyers. Zonda, a building consultancy, predicts: “Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”
Market Forecast
NEW AND PENDING HOME SALES, GDP, INFLATION… April New Home Sales are expected to slip a bit, the same as April's Pending Home Sales index of signed contracts on existing homes. The GDP-Second Estimate for Q1 should show economic growth just barely positive. The PCE Prices read is predicted to report inflation still growing on a monthly basis.
Summary
Housing Starts rose in April for both single-family and multi-unit projects. Starts are still down from a year ago, but building has hardly stopped, with the number of homes under construction near its highest level since 1970.
With so many projects in the pipeline, builders are busy, so it was no surprise to see permits for new projects slip a tad in April. The NAHB builder sentiment index rose for the fifth straight month to its highest level since last July.
Sales of existing homes slowed in April, thanks to a less than 3 months’ supply of homes for sale, versus the 5 months of a normal market. But good news for buyers came with the median price now down 1.7% from a year ago.
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.
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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.
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