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 23 homes pending, with 6 homes sold in the last two weeks, averaging a sale price of $338 a square foot. Six homes sold over the asking price, with one home selling 5% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 9 sold, but the average sales price per square foot is up to $338 ($291 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 request your free home evaluation here 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.
My Two Cents: What I learned this week
The current real estate market in the United States is facing several challenges and uncertainties. I am going to share with y’all some of my assessments.
1. Public Opinion: The majority of Americans polled believe it's a bad time to buy a home, and they don't anticipate mortgage rates decreasing soon. This sentiment could indicate caution among potential buyers, which might affect the market.
2. Call to the Federal Reserve: The Mortgage Bankers Association, National Association of REALTORS, and National Association of Home Builders have requested the Federal Reserve's intervention to stabilize the housing finance market by not raising rates further and withholding the sale of mortgage-backed securities. This reflects concerns about market stability.
3. Cash Deals: The high percentage of cash deals for single-family homes over $1 million suggests that wealthier individuals are still investing in real estate, potentially driving prices in that segment.
4. Migration to Low-Tax States: The movement of wealthier individuals to low-tax states can lead to increased demand in those areas, potentially driving up prices and inflation.
5. Rent vs. Mortgage Costs: The fact that monthly rent is cheaper than a monthly mortgage payment for many indicates that purchasing a home has become more expensive, primarily due to rising borrowing costs.
6. Insurance Premiums: Increased claims related to natural disasters have caused insurance premiums to rise significantly, which could affect homeownership affordability.
The real estate market is influenced by a mix of factors, including public sentiment, government interventions, wealthier individuals' behavior, and economic conditions. It's a complex landscape, and potential buyers and investors should carefully consider these factors before making decisions in the current market. But keep in mind, there are still lots of opportunity to be had. Especially in new construction, where we are seeing the largest incentives we have ever seen before.
What is happening in the real estate market nationally?
Mortgage rates trended lower last week. Refinance applications increased while purchase applications slipped. New and pending home sales surged in September. Jobless claims increased. The GDP estimate for quarter three jumped above expectations. The personal consumption expenditures (PCE) index, consumer spending, and personal income were all in line with expectations in September.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- If buyer demand is weak, why aren’t home prices falling? Watch Now >>
- New home sales defy gravity. Read Now >>
- Federal Reserve may not hike interest rates. Here’s what it might mean for you. Read Now >>
Market Recap
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Composite mortgage application submissions slipped 1% during the week ending 10/20. Though refinance application submissions increased by 2%, seasonally adjusted purchase application submissions decreased by 2%.
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New home sales were at 759,000 in September, a 12.3% increase from the month before.
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Continuing jobless claims jumped by roughly 60,000 during the week ending 10/14 to reach a level of 1,790,000. Initial jobless claims were at 210,000 during the week ending 10/21, a 10,000 increase from the week before.
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New home sales were at a seasonally adjusted annual rate of 759,000 in September, a 12.3% increase from the month before.
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Pending home sales climbed by 1.1% in September, despite the forecast for a 1.8% fall.
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The GDP estimate for the third quarter jumped to 4.9%, a notable increase from 2.1%.
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The core PCE index, stripping food and energy costs, remained at 0.3% month-over-month in September and 3.7% year-over-year. Consumer spending increased 0.7% month-over-month, nearly double the level from the month before. Personal income was relatively unchanged at 0.3%.
Review of Last Week
CORRECTION TERRITORY… That's where the S&P 500 and the Nasdaq landed, having fallen 10% below their recent highs in late July. The Dow isn't quite there yet, though it posted another down week.
Problems included high bond yields and Core PCE Prices, the Fed's favorite measure of inflation, down a bit, but at 3.7%, still well above the Fed's 2% target. Both point to the Fed's keeping rates higher for longer.
Advanced Q3 GDP had the economy growing at a hefty 4.9%, plus consumer spending and business investment were both up. So, the economy is too strong for the Fed to cut rates, but at least we're not in a recession.
The week ended with the Dow down 2.1%, to 32,418; the S&P 500 down 2.5%, to 4,117; and the Nasdaq down 2.6%, to 12,643.
Bond prices sank as well, the 30-Year UMBS 6.5% falling to $99.08. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate edged up. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Zillow reports that nearly 20% of couples now put “home funds” in their wedding registry, up 55% from 2018. In 2023, 43% of first-time buyers used gift funds from friends and family to help make their down payment.
Market Forecast
CONSTRUCTION SPENDING, HOME PRICES, JOBS, THE FED… September Construction Spending is predicted to be up overall, but our focus will be on the residential sector. The S&P Case-Shiller Home Price Index for August should continue its modest rebound. The October Nonfarm Payrolls report is expected up, though not matching September's blockbuster number. Finally, it's hard to find a single person on Wall Street who thinks the Fed's FOMC Rate Decision will raise the rate.
Summary
New Home Sales soared 12.3% in September, the biggest gain in more than a year, sending sales up 39.8% over the July 2022 low. Inventories were up by 3,000, while the median selling price was down 12.3% from a year ago.
The Pending Home Sales index of contracts signed on existing homes reversed its recent monthly slides, heading back up in September. This points to increased existing home sales in October and November.
The NAR predicts existing home sales will end 2023 down, then rise 13.5% in 2024, the median price up less than 1%. New home sales will be up 4.5% in 2023, and 19.4% in 2024, the median price down 5.9% in 2023, but up 3.5% in 2024.
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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