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 20 homes pending, with 5 homes sold in the last two weeks, averaging a sale price of $355 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 slightly down from 11 sold, but the average sales price is up to $943,040 ($565,206 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
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?
Mortgage rates inched slightly higher last week. Construction spending rose in November. Mortgage application submissions decreased over the past two weeks. Job openings were lower than expected in November. Jobless claims declined. The ADP nonfarm employment change was higher than expected, as was the employment situation.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Older Americans may be more likely to sell and downsize this year. Read Now >>
- Atlos Research founder discusses how the market seems to be heading north in 2024. Watch Now >>
- Design trends to watch in 2024. Read Now >>
Market Recap
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Construction spending inched up 0.4% month-over-month in November – slightly lower than expected.
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Mortgage application submissions slipped a composite 9.4%% during the two weeks ending 12/29. Though the holiday-adjusted Refinance Index slipped 38% week-over-week, it was 15% higher than it was during the same period one year prior. The seasonally adjusted Purchase Index decreased 5% week-over-week.
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Job openings on the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) came in below expectations for November. The survey was expected to end the month at 8,850,000 but came in at 8,790,000.
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Continuing jobless claims were at a level of 1,855,000 during the week ending 12/23, a decrease of roughly 30,000. During the following week, initial jobless claims slipped by 18,000 to 202,000.
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The ADP nonfarm employment change in December was higher than expected at 164,000 vs the 115,000 expected.
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The employment situation was largely better than expected in December. Average hourly earnings increased 0.4% while the average workweek slipped to 34.4 hours. Government payrolls were at 52,000, while manufacturing payrolls were at 6,000. The main report, nonfarm payrolls, were much higher than expected at 216,000. Private payrolls also exceeded expectations at 164,000. The participation rate decreased to 62.5%. The unemployment rate fell to 3.7%.
Review of Last Week
STOCKS TAKE A BREATHER… Stocks snapped their nine-week winning streak, as traders worried that a better-than-expected December jobs report could mean the Fed would do fewer rate cuts than expected this year.
In addition, minutes from the Fed’s December meet revealed the central bankers feel the rate is likely at or near its peak, yet they aren’t divorcing themselves entirely from the idea that they might still have to raise rates again.
But the economy is slowing. ISM Manufacturing showed the sector contracting for the fourteenth month in a row. The ISM Services index had that far larger sector expanding, though at a markedly slower pace.
The week ended with the Dow down 0.6%, to 37,466; the S&P 500 down 1.5%, to 4,697; and the Nasdaq down 3.2%, to 14,524.
Bonds also took a dive in the new year, the 30-Year UMBS 5.5% falling 0.88, to $99.28. After nine weeks of declines, the national average 30-year fixed mortgage rate held steady 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… ICE Mortgage Technology reports that in November, it took 35.9% of the median household income for the principal and interest payment on a median-priced home, down from 40.3% less than two months earlier.
Market Forecast
MORTGAGE APPLICATIONS, INFLATION, JOBLESS CLAIMS… We'll check if the MBA Mortgage Applications Index shows some growth in purchase loans in the new year. The big inflation read this week will be the Consumer Price Index (CPI), expected to show a small monthly increase. Initial Unemployment Claims are forecast up slightly, though still well below recession levels.
The stock and bond markets will be closed next Monday, January 15, for Martin Luther King Jr. Day.
Summary
Spending on residential construction in November grew a solid 1.1% above October, and 3.7% ahead of last year. Best of all, the emphasis was on single-family homes, where spending is up 5.5% the past year.
10,000 people a day are turning 65, fueling a “silver tsunami” in the housing market. The AARP estimates that among people over 50 (74% of homeowners), 51% of them have downsized their homes.
In 2023, new homes accounted for about 30% of total housing inventory and sales—more than twice the normal annual level. Industry experts feel new home sales are near their peak as a share of the total 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?!
• Navigate our Blog: https://byjoandco.com/categories-to-help-you-navigate-the-blog/
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