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 6 homes pending, with 4 homes sold in the last two weeks, averaging a sale price of $132 a square foot. Four homes sold over the asking price, with one home selling 7% above the listing price.
Compared to the two weeks prior: Homes sold are up from 3 homes sold to 4 homes sold and the average sales price is also up: $494,250 ($425,500 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 homes are going, 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
Mortgage activity is on the rise in June, ahead of an expected change of course by the Federal Reserve.
The seasonally adjusted purchase index increased 8 percent from the previous period in the week ending on June 9, according to the Mortgage Bankers Association’s weekly survey. Mortgage rates declined for the second consecutive week. The average contract 30-year fixed-rate mortgage with conforming loan balances ($726,200 or less) fell modestly from 6.81 percent to 6.77 percent. While not directly tied to mortgage rates, interest rates cast a heavy shadow on the mortgage market; the Fed is widely expected to pause rate hikes.
What is happening in the real estate market nationally?
Mortgage rates were relatively unchanged last week. The Federal Reserve left the benchmark interest rate unchanged. Inflation continued cooling in May, mortgage application submissions increased, and continuing jobless claims rose. Retail sales posted an unpredicted increase in May.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Logan Mohtashami on the Fed’s rate pause, and what it will do next. Listen Now >>
- Realtor.com chief economist talks surge in demand. Watch Now >>
- What Fed’s pause on rate hikes means for buyers. Read Now >>
Market Recap
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The consumer price index showed that inflation continued to cool in May, rising just 0.1% month-over-month. The previous month, it rose 0.4%, and it was expected to climb 0.2% in May. Annual inflation fell below expectations as well, climbing 4% versus the 4.1% expected and 4.9% from the month before. Core inflation was right on the mark.
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Mortgage application submissions surged a composite 7.2% during the week ending 6/9. The Refinance Index increased 6% while the Purchase Index increased 8%.
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The Federal Open Market Committee (FOMC) voted unanimously to leave the benchmark interest rate at its current level. However, the Committee did make note that this was a ‘skip’ in rate hikes versus a ‘pause,’ indicating more hikes will likely follow.
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Continuing jobless claims were at 1,775,000 during the week ending 6/3, a 20,000 increase from the week before. During the week ending 6/10, initial jobless claims were at 262,000 – the same level as the week prior.
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Retail sales were projected to fall 0.1% in May but increased 0.3%, largely due to the sales of motor vehicles and building materials.
Review of Last Week
NO HIKE, STOCKS SPIKE… After hiking rates for 10 straight FOMC meetings, the Fed last week held off. Stocks rallied on the hopes of a less-aggressive Fed which might actually succeed in avoiding a recession.
Fed Chair Powell emphasized this wasn't the end of rate hikes, as inflation is still above their 2% target. But the May Consumer Price Index (CPI) showed inflation on a downward trend, hitting 4%, a two-year low.
Also, a sharp decline in wholesale price inflation indicated lower CPIs ahead. A boost in Retail Sales showed consumers still contributing, though University of Michigan Consumer Sentiment reported people expect economic difficulties.
The week ended with the Dow UP 1.2%, to 34,299; the S&P 500 UP 2.6%, to 4,410, and the Nasdaq UP 3.2%, to 13,690.
Bonds rose a tick overall, with the 30-Year UMBS 5.5% inching UP 0.05, to $100.03. Freddie Mac's Primary Mortgage Market Survey found the national average 30-year fixed mortgage rate edged lower again. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Analysts say Gen Xers (age 41 to 56) are the #1 demographic cohort when it comes to the ability to buy homes. They’re at their peak earning years and have benefited from stock market and home price growth.
Market Forecast
HOME BUILDING, EXISTING HOME SALES, JOBLESS CLAIMS… It's expected we'll see builders treading water in May, with Housing Starts holding at April's annual rate. Looking to the future, things should get more active, with May Building Permits up from April. May Existing Home Sales are also forecast to be in a holding pattern, thanks to tight inventory. But analysts predict weekly Initial Unemployment Claims will recede from their recent elevated levels.
U.S. stock and bond markets are closed today, June 19, in observance of Juneteenth National Independence Day.
Summary
Zillow reports home values rose 1.4% from April to May, faster than the two spring markets before the pandemic. Low inventory is the reason, which can lead to “bidding wars as buyers compete for limited options.”
The Mortgage Bankers Association reports purchase loan applications were up 8% versus the week before, and “the average loan size…decreased for the third straight week, as we continue to see more first-time homebuyer activity.”
Homebuyers are on the move. In the first three months this year, almost 60% of all Realtor.com listing page views in the top 100 metros were for homes outside the shopper's metro, up from the prior quarter and year-over-year.
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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