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 10 homes pending, with 2 homes sold in the last two weeks, averaging a sale price of $109 a square foot. Two homes sold over the asking price.
Compared to the two weeks prior: Homes sold are slightly down from 4 sold, but the average sales price is up to $432,500 ($362,500 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 Memorial Northwest.
My Two Cents: What I learned this week
As you know, I love to stay up to date on what is happening in the market on a local and national level. Here are some of my key takeaways in the last two weeks:
If you take a step back and look at the big picture, today's mortgage rates aren't anything out of the ordinary. Here's an interesting fact: since way back in October 1971, the average rate for a 30-year mortgage has hovered around 7.74%.
Even now, houses are flying off the market quicker than before the pandemic shook things up. Here's an interesting nugget: In October, the average home switched from being up for sale to pending in just 16 days.
Buyers are still relatively uneducated. There are so many financing options available right now, and get this, a whopping 54% of potential homebuyers don’t even know what pre-approval means.
The eagerly awaited inflation figures that came out this week were surprisingly lower than what everyone anticipated, and that turned out to be fantastic news for the mortgage scene. Plus, there was a noticeable dip in consumer spending compared to last month. All in all, this led to a drop in mortgage rates as the week wrapped up.
If you are still asking yourself, is now a good time to buy? It just depends on your scenario. Please reach out to me, if you would like to have a discussion about buying or selling.
What is happening in the real estate market nationally?
Mortgage rates continued trending lower last week after good inflation news from the consumer price index (CPI). Mortgage application submissions increased for the second consecutive week. Retail sales fell in October. Continuing and initial jobless claims increased. Home builder confidence fell in November. Housing starts and building permits each rose in October.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable New
- CMG Financial announces the addition of Shamrock Home Loans, expanding its presence across the Northeast. Read Now >>
- HousingWire Lead Analyst talks about how much lower rates can go. Listen Now >>
- Property Brothers: there’s still money to be made in the real estate business. Watch Now >>
Market Recap
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Inflation cooled more than expected on October’s CPI. Despite the projected increase of 0.1%, the index remained unchanged month-over-month. Annually, the index was expected to be at 3.3% but came in at 3.2% instead. Both the monthly and annual measurements on the core index, which strips food and energy costs, were 0.1% below expectations as well.
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Mortgage application submissions rose by a composite 2.8% during the week ending 11/10. The Refinance Index increased 2% from the previous week while the seasonally adjusted Purchase Index increased 3%.
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Retail sales fell 0.1% month-over-month in October, which was a smaller decline than the 0.3% drop expected.
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Continuing jobless claims came in higher than expected during the week ending 11/4, rising by 32,000 to reach a level of 1,865,000. Initial jobless claims came in higher than expected as well, rising by 13,000 to reach a level of 231,000 during the week ending 11/11.
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According to the National Association of Home Builders (NAHB) housing market sentiment index, home builder confidence dropped to a level of 34 in November, a 6-point decrease from October’s level of 40. This result was much lower than expected but could be seasonal since the index’s three components were around the same levels as last fall/winter.
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Building permits were at a seasonally adjusted annual rate of 1,487,000 in October, a 1.1% increase from the month before. This was above the expected level of 1,450,000. Housing starts were at a seasonally adjusted annual rate of 1,372,000, a 1.9% increase from the month before. This was above the expected level of 1,345,000.
Review of Last Week
THREE IN A ROW… Traders put the October correction in the rearview mirror and logged a third winning week for stocks, anticipating a soft landing for the economy and the possibility of Fed rate cuts in the first half of 2024.
The soft landing scenario was supported as initial and continuing jobless claims gained, yet stayed at relatively low levels, while Retail Sales dipped slightly, indicating slowing consumer demand.
But a better-than-expected Consumer Price Index (CPI) showed inflation is moving in the right direction, making investors think the Fed wouldn't be moving rates any higher, and may start cutting them as early as May.
The week ended with the Dow UP 1.9%, to 34,947; the S&P 500 UP 2.2%, to 4,514; and the Nasdaq UP 2.4%, to 14,125.
The good CPI sent inflation-hating bonds solidly north, with the 30-Year UMBS 6.0% UP 1.04, to $99.25. The national average 30-year fixed mortgage rate dropped for the third straight week 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… The latest forecasts say home prices will finish this year up 2.8% overall, then go up another 1.5% by the end of 2024. Those forecasts, on average, put sales just under 5 million this year, rising to 5.2 million in 2024.
Market Forecast
EXISTING HOME SALES, CONSUMER SENTIMENT, FED MINUTES… Three days until Thanksgiving, and three key reports. Economists expect October Existing Home Sales to slip a tad from September and the final University of Michigan Consumer Sentiment read for November to remain historically low. We'll examine FOMC Minutes from the Fed's last meet for signs of when rate cuts may start.
U.S. financial markets are closed Thursday, November 23, for Thanksgiving. Friday, stock markets will close early at 1 p.m. and bond markets at 2 p.m.
Summary
October saw Housing Starts increase 1.9% over September, as builders answer growing demand. Looking to the future, they also took out 1.1% more Building Permits than the month before.
Purchase mortgage applications rose for the second week in a row according to the Mortgage Bankers Association, which noted, “both purchase and refinance applications increased to the highest weekly pace in five weeks.”
Realtor.com reports that last week both new listings and active inventory were up from a year ago. Demand remains strong, as homes spent two fewer days on the market compared to last 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.
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If you are overwhelmed..
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