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 40 homes pending, with 11 homes sold in the last two weeks, averaging a sale price of $288 a square foot. Eleven homes sold over the asking price, with one home selling 3% above the listing price.
Compared to the two weeks prior: Homes sold are up from 9 homes sold to 11 homes sold and the average sales price per square foot is also up: $288 ($282 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 Oak Forest.
Jo's Two Cents
With kids starting school this Wednesday for Klein ISD and the follow two weeks for our neighboring school districts, we will start to see a 2-3 month lull in real estate sales. Which will hopefully take us out of the multiple offer situations we have been seeing on homes in the desirable neighborhoods this summer. The low inventory has really hindered my personal buyers over the last 2-3 weeks. Where we are seeing less completion, are homes over $600k, homes not zoned to A-rated schools, the new construction market, and when it comes to cash purchases.
A group of economists are foreseeing a significant drop in interest rates for the upcoming year. This would clearly be good news for the housing market. Meanwhile, the rental market has remained robust, even amid rental price increases.
I think there are still lots of opportunities if you want a fixer upper or new construction. My favorite opportunities have been in Harper’s Preserve, The Highlands, Grand Central Park, Woodforest, Bridgeland, and Sunterra.
Here is a link to new construction in the Houston suburbs. | Click here
What is happening in the real estate market nationally?
Mortgage rates trended higher throughout the majority of last week, but Friday’s jobs report brought some relief. Construction spending was lower than expected in June. Job openings were also lower than expected while the ADP nonfarm employment change nearly doubled expectations. Mortgage application submissions declined. Jobless claims were as expected. The employment situation largely underperformed in July.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- How much will home prices climb over the next year? Read Now >>
- Home equity just hit a new record high. Watch Now >>
- The summer housing market is still heating up despite interest rates. Read Now >>
Market Recap
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Construction spending was slightly below expectations in June with a monthly increase of 0.5% — likely due to higher costs.
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Job openings on the Job Openings and Labor Turnover Survey (JOLTS) for June were at 9,582,000. This was lower than the expected number of openings, which is a good sign that aligns with the Federal Reserve’s goals to help lower rates faster.
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Mortgage application submissions saw a composite decrease of 3% during the week ending 7/28. Both the Refinance Index and Purchase Index fell by 3% as well.
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The ADP nonfarm employment change for July was 324,000 – nearly double the expected number, which contrasts the job openings’ story of a slowing jobs market and economy.
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Continuing jobless claims were right on par with expectations, at 1,700,000 during the week ending 7/22. Initial jobless claims were also as expected at 227,000 during the week ending 7/29.
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The employment situation largely underperformed in July. Average hourly earnings were above expectations both month-over-month and year-over-year at 0.4% and 4.4% respectively – but that may be a result of some of August’s wage gains getting pulled into July. The average workweek was slightly shorter at 34.3 hours. Government payrolls were lower than the month before at 15,000. Manufacturing payrolls fell by 2,000. Nonfarm payrolls – arguably the most influential report of the employment situation – was lower than expected at 187,000 vs. the 200,000. Private nonfarm payrolls were also lower than expected at 172,000. The participation rate was at 62.6% and the unemployment was at 3.5%.
Review of Last Week
BAD EARNINGS, GOOD JOBS, DOWN MARKET… Corporate earnings growth has been dropping more than expected, and good July jobs numbers could have the Fed holding rates high for longer, so stocks sank for the week.
New Nonfarm Payrolls fell below 200,000, now two months in a row, yet the labor market stays strong, with unemployment down to 3.5%, and hourly earnings up 4.4%, making the Fed's 2% inflation target harder to reach.
Curbing inflation, July Manufacturing contracted and Unit Labor Costs declined, But the Services sector expanded and Productivity picked up. So, we may get that desired soft landing—an economic slowdown without a recession.
The week ended with the Dow down 1.1%, to 35,066; the S&P 500 down 2.3%, to 4,478; and the Nasdaq down 2.8%, to 13,909.
Overall, bond prices were also down, the 30-Year UMBS 5.5% slipping 0.18, to $98.12. The national average 30-year fixed mortgage rate increased slightly 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… CoreLogic’s chief economist notes that in today’s real estate market, “almost four in 10 sales are all-cash transactions.”
Market Forecast
INFLATION, JOBLESS CLAIMS, CONSUMER SENTIMENT… On the inflation front, economists expect small moves for both the Consumer Price Index (CPI) and the Producer Price Index (PPI) of wholesale prices. Initial Jobless Claims are forecast to keep edging up, indicating a weakening labor market that should help quell inflation. Analysts predict University of Michigan Consumer Sentiment will continue recovering in August.
Summary
Builder activity in June sent residential Construction Spending up nearly 1% over May. Spending is still down from last year, but builders are now doing more single-family homes, up more than 2% for the month.
The CoreLogic Home Price Index (HPI) showed annual price growth edged up to 1.6% in June. Month-over-month price growth has slowed, yet CoreLogic expects annual price growth to reach about 7% by early 2024.
Inventory is heading back. Zillow found nearly one quarter of homeowners either have their home listed for sale or are considering listing it in the next three years—4 in 10 of them in the next 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?!
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