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 30 homes pending, with 9 homes sold in the last two weeks, averaging a sale price of $282 a square foot. Nine homes sold over the asking price, with one home selling 1% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 11 sold, but the average sales price is up to $918,384 ($775,960 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 Oak Forest.
Jo's Two Cents
Nationally inventory dipped to record lows in the last few weeks, with the total number of homes for sale declining 15 percent year over year, making the largest annual decline in two years according to industry analysts. New listings fell 30.6% year over year but despite this, demand is steadily ticking up and now we are seeing the resurgence of bidding wars, something that has pushed the median sales price in the U.S. to $426,056 for June. This is only 1.5% away from the record all-time high of $432,397 from May 2022. And we are seeing these bidding wars locally. Every house, excluding new construction, that I have helped clients purchase recently were involved in a multiple-offer situation. But don't worry, we still won all of our bids in June.
What is happening in the real estate market nationally?
Mortgage rates trended higher last week. Retail sales increased at a slower pace in June. Home builder sentiment increased once again in July. Mortgage application submissions climbed. Housing starts and building permits fell in June. Continuing jobless claims rose higher while initial claims dropped. Existing home sales slowed in June.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
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Retail sales were lower than expected in June, rising just 0.2% month-over-month. Core retail sales, which exclude automobiles, also increased at a slower-than-expected pace of 0.2%. This could indicate continued inflation cooling in the future.
The National Association of Home Builders’ (NAHB) housing market sentiment index increased by one point in July, rising to a level of 56. Anything over 50 is considered a positive outlook on the housing market. The component measuring traffic of prospective buyers increased by three points.
Mortgage application submissions increased a composite 1.1% during the week ending 7/14. The Refinance Index jumped 7% – likely due to the downward trend in rates – while the seasonally adjusted Purchase Index fell 1%.
Housing starts took a semi-unsurprising tumble in June, falling 8% month-over-month. The decline can largely be attributed to the abnormal 18.7% gain the month before. Many see the decline as a balancing out vs. a negative fall. Building permits decreased 3.7% on a monthly basis. Single-family permits, on the other hand, climbed 2.2%, signaling continued relief for housing inventory.
Continuing jobless claims increased by 33,000 during the week ending 7/8 while initial jobless claims decreased by 9,000 during the week ending 7/15.
Existing home sales slid by 3.3% in June as the market continues to struggle with existing home inventory. Most mortgages were either obtained or refinanced during the pandemic, meaning many owners have a great rate keeping them from selling.
Review of Last Week
GOLDILOCKS ON THE WAY?… Film fans obsessed about Barbie, but Wall Street was excited we might see Goldilocks—an economy neither too hot to quiet inflation, nor so cold it sinks into recession—and stocks mostly rose.
Cooling influences came from the housing data reported above, plus a June drop in Industrial Production and Capacity Utilization. On the warmer side, a bunch more Q2 corporate earnings reports came in better than expected.
In addition, initial jobless claims fell last week to 228,000, the lowest level since the middle of May, and Retail Sales rose in June, indicating that consumers are still holding up their 70% of the economy.
The week ended with the Dow UP 2.1%, to 35,228; the S&P 500 UP 0.7%, to 4,536; but the Nasdaq down 0.6%, to 14,033.
Bond prices overall moved up a smidge, though the 30-Year UMBS 5.5% dipped 0.86, to $99.15. The national average 30-year fixed mortgage rate fell 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… Realtor.com reported that for the week ending July 15, 102,000 newly listed homes were added to the country’s housing inventory, the largest number in five weeks.
NEW AND PENDING HOME SALES, HOME PRICES, THE FED, INFLATION… Both New Home Sales and the Pending Home Sales index of signed contracts on existing homes should reverse course and post gains for June. Not so for the Case-Shiller Home Price Index, predicted to show another small decline. The FOMC Rate Decision is expected to be a quarter point hike, while PCE Prices, the Fed's favorite inflation gauge, is forecast up slightly for June.
After May’s big surge in home building, things slowed down in June, as Housing Starts slipped slightly for the month. But, looking to the future, single-family Building Permits hit their highest level in 12 months.
The market for new homes is clearly improving. NAHB homebuilder sentiment saw its seventh straight gain in July, hitting the highest reading in over a year, as a solid majority of builders view conditions as good.
Existing Home Sales posted a small decline for June. But, good news for buyers, the median price has fallen a bit the past year. Good for sellers, tight inventories will prevent any large price drops.
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.
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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