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 Spring Creek Oaks. 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 Spring Creek Oaks?
We currently have 4 homes pending, with 1 home sold in the last two weeks, averaging a sale price of $132 a square foot. One home sold over the asking price.
Compared to the two weeks prior: Homes sold are up from 0 home sold to 1 home sold with the average sales price of $495,000. 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 Spring Creek Oaks.
My Two Cents: What I learned this week
It's quite surprising to see that last week, 50,000 new listings emerged on the national market. What's even more surprising is this marks a 16% increase from last year. What could this mean? Here are a few thoughts:
1. This surge might signal a shift towards a buyer's market in locales where an abundance of move-in-ready homes have appeared. This could significantly alter the buying landscape.
2. It may indicate that boomers are beginning to release their properties into the market, potentially catalyzing a wave of opportunities for first-time homebuyers. Besides the lowering of interest rates, this is the other domino the real estate market is dying for right now.
3. This uptick could also be a reflection of the recent layoffs, with nearly 40,000 jobs lost in January and February of this year just in the tech sector.
There is no way to predict exactly why and how and what of this real estate market, so we need to be banking on smart choices. I have been preaching this for awhile now, but the smartest choice right now is going to be in the direction of temporary buy downs, and seller credits. The easiest way to achieve this is going to be new construction.
What is happening in the real estate market nationally?
Mortgage rates were relatively unchanged last week. New home sales increase in January, home prices appreciated in December, and mortgage application submissions declined a couple weeks ago. The GDP estimate for the fourth quarter of 2023 was below expectations. Jobless claims increased, inflation was as expected in January, personal income was higher than expected, and consumer spending was on target. Pending home sales and construction spending both declined in January.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- The FHFA announces new credit score requirements come 2025. Read Now >>
- New home construction expected to grow in 2024. Read Now >>
- How the Biden administration is tackling rising housing costs. Read Now >>
Market Recap
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New home sales were at a seasonally adjusted annual rate of 661,000 in January, a 1.5% month-over-month climb.
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The FHFA house price index inched up 0.1% month-over-month and 6.6% year-over-year in December. This was slightly below the expected increase.
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The 20-city Case-Shiller home price index climbed 0.2% month-over-month, which was on target. The annual increase was slightly above expectations at 6.1%.
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Mortgage application submissions slipped 5.6% during the week ending 2/23. Refinance application submissions decreased 7% and purchase application submissions decreased 5%.
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The GDP estimate for quarter four was below expectations at 3.2%.
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Continuing jobless claims were at 1,905,000 during the week ending 2/17 – a 45,000 increase from the week before. Initial jobless claims were at 215,000 during the following week – a 13,000 increase from the week before.
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The core PCE index climbs 0.4% month-over-month in January, which was as expected. Personal income was much higher than expected, rising 1% versus 0.4%. Consumer spending was right on target at 0.2%.
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Pending home sales slipped 4.9% month-over-month in January. They were expected to climb 1.4%.
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Construction spending was lower than expected as well, slipping 0.2% month-over-month in January.
Review of Last Week
STOCKS ROAR AHEAD… Friday, March came in like a lion on Wall Street, as the S&P 500 and the tech-heavy Nasdaq set new record highs, while the Dow ended positive on the day, though off a tick for the week.
There were disappointments. February ISM Manufacturing registered a slowdown, Consumer Confidence revealed folks are a bit more pessimistic, and January Durable Goods sent a poor signal about business spending.
But Q4 corporate earnings have been strong, and the PCE Price Indexes showed year-over-year inflation continued to cool in January. The Fed focuses on these reads, so traders felt we're closer to the start of rate cuts. Let's hope so.
The week ended with the Dow down 0.1%, to 39,087; the S&P 500 UP 0.9%, to 5,137; and the Nasdaq UP 1.7%, to 16,275.
Bonds did well overall, the 30-Year UMBS 5.5% ending UP 0.11, at $98.28. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate inched up just four basis points (0.04%). Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Both new listings and total inventory were up last week by a larger margin than the week before. Homes are moving quickly but sellers aren’t getting greedy, as the median listing price is up just 0.4% from a year ago.
Market Forecast
MORTGAGE APPLICATIONS, SERVICES SECTOR, JOBS… The Mortgage Bankers Association Mortgage Applications Index should tell us if we get a bounce back in purchase activity. Economists expect the ISM Non-Manufacturing Index to show a small pullback in February, but the huge services sector is still in growth mode. Forecasts for Friday's February Employment Report call for some slowing in the labor market.
Summary
January sales of new single-family homes rose for the second month in a row and are up from a year ago. Good news for buyers, the median sale price is down 15.3% from its 2022 peak and supply is up 160% from its 2022 bottom.
Unfortunately, existing homes still have an inventory problem, which is one of the reasons Pending Home Sales fell by 4.9% in January. This index of signed contracts on existing homes is also down from its level a year ago
But more homes are on the way. Spending on residential construction in January was up overall from December. Most notably, spending on much-needed single-family builds is now 12.5% ahead of the same time 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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