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 3 homes sold in the last two weeks, averaging a sale price of $121 a square foot. Three homes sold over the asking price.
Compared to the two weeks prior: Homes sold are slightly down from 5 sold, but the average sales price per square foot is up to $121 ($117 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 media coverage of the real estate market has been pretty doomsday. Mortgage rates have increased this week, and 21% of Americans in a recent Gallup poll think it is a bad time to buy a house. But the good news is that the median sales price of a home was up 32 percent in the first quarter of 2023 from the same period in 2020 according to Census data. And inventory in the most desirable areas is at a record low. I personally still think it is a great time to sell due to that low inventory and a great time to buy if you are patient and need a home.
Did you know?!
Texas is the fastest-growing state in the nation.
The Real Deal
- The only state with more than three of the nation’s fastest-growing cities is Texas.
- In fact, six of the 15 fastest-growing cities in the U.S. are in Texas, according to the U.S. Census Bureau.
- Central Texas saw people flocking to the region, as three of the fastest growing were on the outskirts of Austin.
- Georgetown, Texas was the fastest-growing city for the second year in a row with a population growth of 14.4 percent in 2022.
- San Antonio also experienced rapid growth, with 18,889 people added, which ranked it as the third fastest-growing city in terms of pure volume.
- The Houston-The Woodlands-Sugar Land metro area had the second largest increase with 124,281 new residents.
- All four of the Texas Triangle cities of Dallas, Austin, Houston, and San Antonio were in the top 10 of the list for population for the first time.
- Texas also ranked number one in terms of housing growth with Harris County adding 32,700 housing units.
The 30-year mortgage rate just hit 7%. Here’s how much it will cost homeowners.
- If you haven’t heard, mortgage interest rates are up.
- The recent debt ceiling debate has only caused more economic uncertainty, which drives rates up.
- The 30-year fixed mortgage rate climbed to more than 7 percent this week, up from 6.95 percent last week, according to Mortgage News Daily.
- “Whatever the source, these higher rates are a difficult pill for buyers to swallow, and they give homeowners all the more reason to sit tight and avoid listing their homes,” said the senior economist at Zillow.
- An average of $121 has been added to monthly mortgage payments since last year.
- For those waiting for rates to come down, don’t hold your breath, said the chief economist at Bright MLS.
- “In the short term, the debt-ceiling debate has created uncertainty and will likely keep rates elevated, or perhaps push them even higher,” she explained.
- Zillow has stated that it expects the mortgage rate to move above 8 percent if the U.S. defaults on its debt.
What is happening in the real estate market nationally?
Mortgage rates trended lower last week. Home price appreciation increased. Mortgage application submissions decreased, job openings rose in April, and the ADP nonfarm employment change jumped in May. Both continuing and initial jobless claims increased slightly. Construction spending climbed higher, and the employment situation had mixed results.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Here’s how home builders are capitalizing on first-time buyers. Read Now >>
- Caruso CEO discusses luxury retail, real estate demand, and consumer spending. Watch Now >>
- HousingWire discusses mortgage rates and the debt ceiling. Watch Now >>
Market Recap
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The FHFA home price index increased 0.6% month-over-month in March, which was lower than the previous month but three times as high as the expected monthly increase. On an annual basis, home prices were 3.6% higher than March of last year.
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The 20-city Case-Shiller home price index increased a shocking 0.5% month-over-month in March. It was expected to see a 0.4% monthly decrease. Annually, home price appreciation fell 1.1%.
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Mortgage application submissions decreased 3.7% during the week ending 5/26. Refinance application submissions decreased 7% while purchase application submissions decreased 3%.
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Job openings on the Job Openings and Labor Turnover Survey (JOLTS) were at 10,103,000 in April, a 358,000 increase from March. The projected number of job openings was 9,775,000.
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The ADP nonfarm employment change was at 278,000 in May, soaring beyond the expected level of 170,000.
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Continuing jobless claims were relatively unchanged during the week ending 5/20, rising by just 6,000 to reach a level of 1,795,000. Initial jobless claims were relatively unchanged as well, climbing by just 2,000 to reach level of 232,000 during the week ending 5/27.
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Construction spending surpassed expectations tremendously in April, rising by 1.2% month-over-month versus the 0.1% increase expected. Though public residential construction fell by 1%, private residential construction increased by 0.5%. Typically, the more the US spends on construction, the higher the level of economic activity.
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The Bureau of Labor Statistics (BLS) employment situation had mixed results in May. Average hourly earnings were slightly lower than projections, up 0.3% month-over-month vs. 0.4% expected. The average workweek was shorter than expected at 34.3 hours. Government payrolls increased by 56,000. Manufacturing payrolls slipped by 2,000. The biggest payroll data was the nonfarm payroll increase – soaring past the projection of 180,000 to a level of 339,000. Private payrolls jumped as well, reaching a level of 283,000. The participation rate jumped to 62.6% but the unemployment rate increased to 3.7%.
Review of Last Week
GOOD JOBS… After a way-better-than-expected May jobs report calmed recession and rate hike fears and Congress passed a debt-ceiling deal, traders sent the three major stock indexes solidly ahead for the week.
A 339,000 gain in nonfarm payrolls showed labor market strength and indicated we're not on the verge of a recession. Plus, lower hourly earnings growth and a gain in the unemployment rate might keep the Fed from hiking rates next week.
The ISM Manufacturing Index reported a drop in new orders, but also a dip in the Prices Paid Index, signaling lower inflation. Two FOMC voters came right out and said the Fed could skip a rate hike at the coming meeting.
The week ended with the Dow UP 2.0%, to 33,763; the S&P 500 UP 1.8%, to 4,282, and the Nasdaq UP 2.0%, to 13,241.
Bonds also scored a positive week overall, with the 30-Year UMBS 5.5% UP 0.77, to $99.83. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate moved up again. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… New-home sizes have trended lower for the past five quarters. The NAHB reports Census data for the first quarter of 2023 shows the median single-family home is now down to 2,261 square feet.
Market Forecast
MORTGAGE APPLICATIONS, SERVICES, JOBLESS CLAIMS… Weekly MBA Mortgage Applications are expected to rebound. The ISM Non-Manufacturing Index should indicate the huge services sector of the economy is still expanding. Weekly Initial Unemployment Claims are predicted to keep heading up.
Summary
Builders ramped up activity in April, sending spending on residential construction up 0.5% for the month to an $845.4 billion annual rate. Single-family construction spending is still down from a year ago, but multifamily is up.
The Case-Shiller Index reported March home prices rose from a year earlier for the second straight month, noting “the decline in home prices that began in June 2022 may have come to an end.”
One more indication home prices may have turned the corner came when the FHFA index of prices for homes sold with conforming mortgages headed up 0.6% in March, hitting a new high, up 0.7% from the prior record.
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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