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 5 homes sold in the last two weeks, averaging a sale price of $117 a square foot. Five 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 0 home sold to 5 homes sold with the average sales price of $413,200. 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
Interest rates started pushing above 7% this week, and on the showing side, we have seen a slow in real estate. We won’t see the results of these increases for another 30 days on the closed side, but we will feel it soon enough.
Inventory is still low, and the most desirable neighborhoods will still see some competitive offers. But homes needing updates that aren’t move in ready will stay on the market for record lengths. This is because of the instability in the economy. If people have massive amounts of cash, they are going to hold on to as much as possible. Making renovations not a top desire right now.
But in other news:
- A significant influx of people from outside the U.S. are moving to Texas and purchasing homes, as Texas has become a top location for foreign investors, particularly from Mexico.
- According to NAR, Texas had the second-largest share of U.S. home purchases by foreigners from April 2022 to March 2023, tied with California, and following Florida (23%).
- Texas was the primary destination for homebuyers from Mexico with approximately half of all Mexican buyers in the U.S. choosing Texas.
- Texas home purchases from Mexico increased from 1,735 in 2022 to 4,059 in 2023.
- Texas is also among the top three states for homebuyers from both China and India.
- Foreign buyers contributed $53.3 billion to U.S. residential purchases between April 2022 to March 2023, which represents 2.3% of the $2.3 trillion volume of existing-home sales.
- A total of 84,600 foreign buyers acquired homes during this period, equating to 1.8% of all sales.
- About half of the foreign buyers in 2023 were residing in the U.S.
- The countries with the most buyers of U.S. properties were China (11,000 buyers), Mexico (9,300 buyers), Canada (8,500 buyers), India, (5,900 buyers), and Colombia (2,500 buyers).
- Canada was previously number one but fell to third in the most recent report.
- Among the buyers with the highest median sales price were those from China who had the highest median sale price at $723,200, often purchasing in high-cost areas like California and New York.
- Meanwhile, Mexican buyers had a median purchase price of $278,100, the lowest among the top five countries.
MarketWatch
- The 30-year mortgage rate is currently hovering around 7%, as home prices continue to rise.
- In July, 82% of consumers believed it was a “bad time to buy a home,” an increase from 78% in June according to Fannie Mae.
- With relatively few homeowners showing interest in selling, prices will potentially remain elevated.
- Sixty-four percent of those surveyed said it was a good time to sell, unchanged from the previous month.
- The sentiment of a “good time to sell” has remained steady in recent months.
- This steady sentiment indicates that the low number of homes for sale will likely persist.
- Sales of previously-owned homes dropped by 3.3% in June, with the shortage of homeowners selling being cited as the primary reason for the decline, according to NAR.
- The price of a typical resale home was $410,200, the second-highest since 1999.
- Even as there are fewer homes available for sale nationally (contrary to rising inventory in the Houston market), roughly 40% of respondents expect home prices to increase in the upcoming year.
What is happening in the real estate market nationally?
Despite some increases throughout the week, mortgage rates were little changed last week thanks to a downward trend on Wednesday following the news of some weaker economic data. Existing home sales fell in July while new home sales climbed. Mortgage application submissions declined once again, as did jobless claims.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Fed Chair Powell said the housing market shows signs of picking back up. Read Now >>
- Is America rejecting the Fed’s housing policy? Listen Now >>
- The housing market is one of the reasons the economy is still so strong. Watch Now >>
Market Recap
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Existing home sales were at a seasonally adjusted annual level of 4.07 million in July, a 2.2% drop from the month before.
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Mortgage application submissions decreased a composite 4.2% during the week ending 8/18. The Refinance Index decreased 3% while the seasonally adjusted Purchase Index decreased 5%.
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New home sales were at a seasonally adjusted annual level of 714,000 in July, a 4.4% increase from June.
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Initial jobless claims were at a level of 230,000 during the week ending 8/19, a 10,000 drop from the week before. Continuing jobless claims were at a level of 1,702,000 during the week ending 8/12, a 9,000 decline.
Review of Last Week
NO SURPRISES… Friday, Fed Chair Powell's much-anticipated speech at the Jackson Hole Symposium offered no big policy shocks, so traders sent the S&P 500 and the Nasdaq back up, though the Dow faltered.
As he's said before, Powell warned he may have to raise interest rates higher to quiet the economy and quell inflation, but he said he would proceed cautiously, which left traders feeling we may be near the end of rate hikes.
The negative reads on durable goods orders and existing home sales should make the Fed happy, but the positive reports on new home sales and jobless claims bode well for an economic soft landing with no recession.
The week ended with the Dow down 0.4%, to 34,347; the S&P 500 UP 0.8%, to 4,406; and the Nasdaq UP 2.3%, to 13,591.
Bonds overall ended on the upside, the 30-Year UMBS 6.0% finishing at $99.15. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate continued moving up. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… A new report from Zillow says the share of first-time homebuyers soared to 50% this year—up from 45% in 2022, 37% in 2021, and the highest share since 2010 when first-time buyers got a big tax credit.
Market Forecast
PENDING HOME SALES, CONSTRUCTION SPENDING, INFLATION, JOBS… Heading into Labor Day, we'll get the Pending Home Sales index of signed contracts on existing homes, expected down thanks to declining inventories. Construction Spending should keep growing overall, and we'll check the residential part. Economists are forecasting the Fed's favorite inflation measure, PCE Prices, will remain moderate, while Nonfarm Payrolls are predicted to grow.
Summary
After slipping slightly in June, sales of new single-family homes moved up 4.4% in July, and are now 31.5% higher than a year ago. Good news for buyers, the median sale price is down 12.1% from its peak last year.
Also down were existing home sales, off 2.2% from June to July, thanks the tight inventories. But good news here for buyers, the median price was barely ahead of a year ago.
The inventory of homes for sale is finally ticking up. Last week saw a decent weekly gain in single-family listings of almost 1%, and analysts expect inventories will keep climbing into September.
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.
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