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 77070. 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 77070?
We currently have 6 homes pending, with 2 homes sold in the last two weeks, averaging a sale price of $134 a square foot. Two homes sold over the asking price, with one home selling 2% above the listing price.
Compared to the two weeks prior, we haven’t seen big changes in the market. The average sales price in the neighborhood is $505,000. 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.
I know the interest rates rising has been one deterrent from some buyers purchasing right now, but that isn’t your ideal buyer anyways! And the educated buyer still knows, they need to buy ASAP. 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 77070.
My Two Cents: What I learned this week
Just got an update from my colleague and mortgage expert Dan Frio that I thought you’d find interesting. We’ve been seeing the lowest interest rates in over a month now. This comes especially after some eagerly awaited economic data dropped since the last big inflation report on Feb 13. This week's figures were quite encouraging, and it looks like next week’s inflation data is going to be a real game-changer for rates.
Dan mentioned something about the Non-Manufacturing Index from ISM which, although not a household name, seems to play a big role in moving markets. Apparently, lower numbers on this index are good news for interest rates, and that's what we got this time. It aligns with a cooling trend over the last couple of years.
He also touched on the “prices paid” index within the ISM Services data, which is a big deal for tracking inflation trends. Good news is, the latest report showed a drop, which kind of neutralizes a previous spike that had everyone worried.
Then there was a mention of the Job Openings survey which, despite not causing a huge stir this week, didn’t bring any bad news either. This data, along with the “quits” rate that shows how many workers are leaving their jobs voluntarily, seems to suggest the economy's momentum is shifting since people are less likely to quit in a contracting economy.
A bit of a surprise came with Friday’s jobs report, particularly the Nonfarm Payrolls which were way above expectations. Even though there was a big revision downward for the previous month, it somehow balanced out the potential negative impact. Still, jobs are more plentiful now than before the pandemic, which is interesting to note.
Despite the surprising jobs data, other report components, like a dip in wage growth and a slight rise in unemployment, helped ensure interest rates didn’t go up. Dan finds it all quite fascinating, especially considering these mixed signals could indicate a shift in the employment landscape.
Overall, the past 7 business days have been pretty great for interest rates, pushing back against the rising trend we saw in the first two months of the year. And with the next Consumer Price Index report due Tuesday, all eyes are on inflation to see where rates might head next. Dan hints that a surprising CPI figure could sway the Fed's upcoming policy announcement and rate projections big time.
Thought you’d appreciate the heads-up! Let me know if you want more details or have any questions.
What is happening in the real estate market nationally?
Mortgage rates saw a nice downward trend last week. Mortgage application submissions jumped, and ADP employment data was below expectations from February. Job openings were above expectations in January. Consumer credit was higher. Continuing jobless claims increased while initial jobless claims were unchanged. The employment situation was mixed.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Biden lays out plan for lower housing costs. Read Now >>
- HousingWire Lead Analyst talks about rates and Jerome Powell. Listen Now >>
- U.S is desperate for more housing supply. Watch Now >>
Market Recap
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Mortgage application submissions jumped a composite 9.7% during the week ending 3/1. The Refinance Index jumped 8% while the purchase Index jumped 11%.
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The ADP nonfarm employment change for February was at 140,000 – lower than the 149,000 expected.
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Job openings on the Job Openings and Labor Turnover Survey (JOLTS) were at 8,863,000 in January. This was higher than the 8,800,000 expected number of openings.
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Continuing jobless claims were at a level of 1,906,000 during the week ending 2/24, an increase of 8,000 from the week before. This was a higher-than-expected increase. Initial jobless claims were at a level of 217,000 during the week ending 3/2, unchanged from the week before.
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Consumer credit in January was above expectations in January at a level of 19.49 billion.
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The employment situation had some numbers that were weaker and some numbers that were stronger than expected in February. Though nonfarm payrolls were expected to come in at 198,000, they were at a level of 275,000. Private payrolls were above expectations as well at a level of 223,000. However, it’s important to note that there will likely be revisions to these numbers like we saw in January. Other reports within the employment situation came in weaker. Average hourly earnings were at 0.1% month-over-month and 4.3% year-over-year vs the 0.2% and 4.4% expected. The average workweek was at 34.3 hours. Government payrolls were unchanged at 52,000. The participation rate was unchanged as well at 62.5%. The unemployment rate, however, increased from 3.7% to 3.9%. Manufacturing payrolls fell by 4,000 even though they were expected to climb by 10,000.
Review of Last Week
PROFIT TAKING, RATE CUT HOPES… Traders kept selling, taking profits after the recent record highs, but the three major indexes dropped only modestly, as Friday’s February jobs report boosted hopes for a Fed rate cut.
February’s 275,000 new jobs belied a labor market that’s weakening. January’s blowout read was revised lower by 124,000 jobs, wage growth slowed to a measly 0.1%, and unemployment rose to a two-year high.
All these negatives are positives for the Fed, which is waiting for the economy to cool and hiring to recede before dropping rates. Yet the data isn't pointing to a recession, supporting the hoped-for “soft landing” scenario.
The week ended with the Dow down 0.9%, to 38,723; the S&P 500 down 0.3%, to 5,124; and the Nasdaq down 1.2%, to 16,085.
Bond markets closed the week higher overall, though the 30-Year UMBS 5.5% slipped .05, to $98.23. The national average 30-year fixed mortgage rate dipped down 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… Location is no longer the number one buyer priority. A recent survey found that 56% of U.S. consumers said price is now the most important factor when choosing a home.
Market Forecast
MORTGAGE APPLICATIONS, RETAIL SALES, INFLATION… We’ll watch the Mortgage Bankers Association Mortgage Applications Index to see if buyer demand continues to grow. The February Retail Sales report should show consumers back contributing to the economy after their January pullback. The Consumer Price Index is expected to show inflation heading in the wrong direction in February, though well below the growth rate of a year ago.
Summary
Buyers are back. The Mortgage Bankers Association reports applications for purchase mortgages, down for more than a month, jumped 11% over the prior week. Even refinance applications were up 8% for the same period.
Sellers are back too. Realtor.com: “The first couple of months of 2024 have proven to be positive for inventory levels, as the number of homes actively For Sale was at its highest level since 2020.”
And sellers have plenty of equity to work with. Analytics firm CoreLogic reports that the average homeowner with a mortgage ended the year with $298,000 in equity, gaining more than $24,000 in Q4 alone.
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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