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 neighborhood of Oak Forest. 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 Oak Forest?
We currently have 32 homes pending, with 12 homes sold in the last two weeks, averaging a sale price of $289 a square foot. Twelve homes sold over the asking price, with one home selling 8% above the listing price.
Compared to the two weeks prior: Homes sold are up from 10 homes sold to 12 homes sold. 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.
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 Oak Forest.
Jo's Two Cents
Will new construction help meet the demand that we need to stabilize the market? Homebuilders are certainly trying to fill that gap. Insurance continues to be a factor for homeowners and buyers in states that experience significant natural disasters, as rates skyrocket. And we know all too well about weather incidents as we are still under a heat advisory right now in Texas. Everyone in our industry knows that one of the most significant issues for the real estate market is the lack of inventory. Fortunately, new construction homes jumped 21.7% in May, as homebuilders attempt to meet the surge in demand from buyers. Until mortgage rates come down to what consumers see as more reasonable levels, we will likely continue to see increased rental activity and low inventory of available homes for sale.
What is happening in the real estate market nationally?
Mortgage rates took a slight downward trend last week. Home builder confidence climbed once again in June, housing starts skyrocketed in May, and building permits increased. Mortgage application submissions increased, continuing, jobless claims decreased, and initial jobless claims were unchanged. Existing home sales climbed in May.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- CMG Financial Pivots into Total Mortgage Space with the Addition of Courtney Thompson, EVP, Head of Servicing. Read Now >>
- HUD launches Office of Manufactured Housing Programs. Read Now >>
- Home prices could dip before getting higher. Watch Now >>
Market Recap
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The National Association of Home Builders (NAHB) housing market sentiment index for June jumped from 50 to 55. It was projected to come in at 51. Anything above 50 is a positive sign for the housing market.
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Housing starts skyrocketed 21.7% month-over-month in May. They were expected to fall 0.8% but as existing home inventory remains limited, many are looking to new builds. Building permits jumped as well, rising 5.2% month-over-month.
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Mortgage application submissions climbed a composite 0.5% during the week ending 6/16. The Refinance Index decreased 2% while the Purchase Index increased 2%.
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Continuing jobless claims slipped by 13,000 during the week ending 6/10 while initial jobless claims remained unchanged at 264,000 during the week ending 6/17.
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Existing home sales surprisingly increased in May, inching up by 0.2% month-over-month. Existing home prices fell by the largest year-over-year amount since 2011.
Review of Last Week
PROFIT TAKING, PLUS… The three major stock indexes ended the holiday-shortened week down, as traders took profits following the market’s recent run up, while fearing more rate hikes might induce a recession.
Those fears came after Chair Powell told Congress the Fed wasn’t through raising rates to fight inflation. In addition, the Leading Economic Index fell for the 14th straight month, and the June manufacturing PMI showed contraction.
Yet, as reported above, Housing Starts came in really strong, purchase mortgage applications lifted 2% for the week, initial jobless claims were unchanged, and continuing claims fell by 13,000.
The week ended with the Dow down 1.7%, to 33,727; the S&P 500 down 1.4%, to 4,348; and the Nasdaq also down 1.4%, to 13,493.
Bond prices barely moved up overall, while the 30-Year UMBS 5.5% slipped 0.12, to $99.91.The national average 30-year fixed mortgage rate dipped 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… Freddie Mac’s Chief Economist noted, “a recent rebound in single-family housing starts is an encouraging development that will hopefully extend through the summer.”
Market Forecast
NEW AND PENDING HOME SALES, HOME PRICES, INFLATION… Both New Home Sales and the Pending Home Sales index of signed contracts on existing homes are expected to slip a tad for May. Same goes for the April S&P CoreLogic Case-Shiller Home Price Index. Happily, PCE Prices, the Fed's favorite inflation measure, is also forecast to continue down.
U.S. financial markets will close early next Monday, July 3, and will be closed Tuesday, July 4, in observance of Independence Day.
Summary
Housing Starts shot up almost 22% in May, the biggest monthly gain since 2016 and 5.7% ahead of a year ago. Builders have lots of projects in the pipeline, so building permits rose a less dramatic 5.2% for the month.
The NAHB builder sentiment index hit 55 in June, signaling most builders see conditions as good. Small wonder. The NAR reports “newly constructed homes are selling at a pace reminiscent of pre-pandemic times.”
Even Existing Home Sales gained in May, up 0.2%, and, good news for buyers, the median price was down 3.1%. But prices shouldn’t crater, as there’s only 3 months of inventory, versus 5 months in a normal market.
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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