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 $121 a square foot. Five homes sold over the asking price.
Compared to the two weeks prior: Homes sold are up from 3 homes sold to 5 homes sold and the average sales price is also up to $440,400 ($352,667 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 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.
My Two Cents: What I learned this week
I've got some great news to share on the real estate front that's really got me excited. Recently, we've seen housing starts – basically the number of new homes being built – jump a whopping 14.8% from October to November. That's a seasonally adjusted annual rate of 1.56M homes. Even better? It's 9.3% higher than last December 2022. This kind of spike means a lot of new homes are hitting the market, which is great news for buyers and the industry alike.
Digging a bit deeper, it's interesting to see that multifamily units (think apartments and condos) are also on the rise, but still not quite at the levels from last year. And while we're seeing more homes getting completed (up 5% from October), there's still a bit of catching up to do from last year's rates.
Now, why this sudden boost? It looks like the recent dip in mortgage rates and a tight squeeze on available homes have pushed new construction. Alicia Huey from the National Association of Home Builders pointed out that lower rates and fewer old homes up for grabs are giving new construction a serious leg up. Still, builders are grappling with high costs, so it's not all smooth sailing.
On a broader scale, with more than half the world living in cities – a number expected to hit 70% in the next 30 years – it's clear that real estate isn't going anywhere. It's a busy world, and everyone needs a place to call home.
So, what's my take on all this? I'm genuinely optimistic about 2024 for real estate investment. I'm seeing signs that inventory will get a slight bump, and with interest rates still on a downward trend, it could be a great time to consider your options in the market. Whether you're looking to buy, sell, or invest, I'm here to help navigate these exciting times. Let's make this year a great one for real estate!
What is happening in the real estate market nationally?
The past couple of weeks have been the calmest in a year for mortgage rates. Last week, they inched slightly higher, but it was only minor movement. Home prices were relatively unchanged, jobless claims increased, and pending home sales were unchanged.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- How resilient are U.S. home prices right now? Listen Now >>
- Housing market predictions for 2024. Read Now >>
- National Association of Realtors (NAR) chief economist talks lower interest rates and home buyers. Watch Now >>
Market Recap
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The FHFA house price index climbed 0.3% month-over-month in October, which was much slower than September’s 0.7% climb and October’s expected climb of 0.5%. Year-over-year, the index increased to 6.3%.
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The 20-city Case-Shiller home price index inched up 0.6% month-over-month and 4.9% year-over-year, which was higher than the 3.9% annual gain the month before.
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Continuing jobless claims were at 1,875,000 during the week ending 12/16, a 14,000 increase from the week before. Initial jobless claims were at 218,000 during the week ending 12/23, a higher-than-expected increase of 12,000 from the week before.
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Pending home sales were unchanged in November following a 1.2% decline in October.
Review of Last Week
MORE HOLIDAY PRESENTS… The Santa Claus Rally continued, as the big man in the red suit gifted traders with the ninth straight week of gains for the three major stock indexes.
That represented the longest winning streak in almost 20 years for the S&P 500, which finished 2023 up more than 24%, just short of its all-time high, as investors anticipate lower Fed rates and a soft landing for the economy this year.
Consumers seem equally upbeat, with Consumer Confidence coming in at its highest read since July. And with the low level of initial jobless claims, the labor market remains in good shape, a plus for the housing market.
The week ended with the Dow UP 0.8%, to 37,690; the S&P 500 UP 0.3%, to 4,770; and the Nasdaq UP 0.1%, to 15,011.
The bond market also finished the week ahead overall, with the 30-Year UMBS 5.5% UP .08, to $100.16. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate continued its downward trend. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… According to an annual NAR survey, home buying in the suburbs has returned to its pre-pandemic rate of 50% of total sales, due in part to workers returning to the office.
Market Forecast
CONSTRUCTION SPENDING, MANUFACTURING, SERVICES, FED MINUTES, JOBS… November Construction Spending is expected to keep gaining overall, and we'll check the residential part. December ISM Manufacturing should show the sector still contracting, while economists predict ISM Services will have that far larger sector expanding. FOMC Minutes from the Fed's last meet may give us more intel on rate cuts. The December jobs forecast calls for fewer Nonfarm Payrolls and a higher Unemployment Rate, as the labor market cools.
Summary
The National Association of Realtors (NAR) November Pending Home Sales index of signed contracts on existing homes was the same as October, but the NAR noted “a surge in interest, as evidenced by a higher number of lockbox openings.”
Sellers are still getting good prices, as the October S&P CoreLogic Case-Shiller National Home Price Index posted its ninth straight monthly gain, and now sits a tick higher than its peak in 2022.
Freddie Mac’s chief economist notes, “Heading into the new year, the economy remains on firm ground with solid growth, a tight labor market, decelerating inflation, and a nascent rebound in the housing market.
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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