Hi neighbor,
Today I will be sharing with you our perspective on the local real estate market here in Cypress, Texas, specifically a market update for the neighborhood of Fairfield. 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 Fairfield?
We currently have 19 homes pending, with 2 homes sold in the last two weeks, averaging a sale price of $157 a square foot. Two homes sold over the asking price, with one home selling 1% above the listing price.
Compared to the two weeks prior: The number of homes sold is still the same, but the average sales price is up to $476,000 ($340,000 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.
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 Fairfield.
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 trended higher last week after a stronger-than-expected inflation report came out. Mortgage application submissions increased, as did continuing jobless claims. Initial jobless claims posted a decrease despite expectations for an increase. Retail sales from February were weak.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Do we need to worry about double digit rates? HousingWire Lead Analyst discusses.
Listen Now >> - Diana Olick talks about the weekly rise in mortgage demand. Watch Now >>
- AirBnb restricts the use of security cameras. Read Now >>
Market Recap
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The consumer price index (CPI) showed that inflation was higher than expected in February, coming in at 3.2% year-over-year vs. the 3.1% expected. Month-over-month levels were as expected at 0.4%, however, the core consumer price index (which strips food and energy costs), came in 0.1% hotter than expected both monthly and annually.
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Mortgage application submissions jumped once again, rising 7.1% during the week ending 3/8. The Refinance Index increased 12% while the seasonally adjusted Purchase Index increased 5%.
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Continuing jobless claims were at 1,811,000 during the week ending 3/2. Though this was a 17,000 increase from the week before, it was lower than expected. Initial jobless claims were at a level of 209,000 during the week ending 3/9. Despite expectations that initial jobless claims would increase, they actually fell by 1,000 week-over-week.
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Retail sales were lower than expected in February, rising by 0.6% month-over-month versus 0.8%.
Review of Last Week
WAITING ON THE FED… The major stock indexes logged modest declines as higher inflation reads and mixed economic data kept traders at bay, waiting for this week’s Fed meeting to provide clarity on how all this affects rate cuts.
February's Treasury Budget reported the budget deficit ballooned to $296 billion from $262 billion a year ago. Thanks to high rates, the interest payment to fund that deficit once again exceeded spending on national defense.
University of Michigan Consumer Sentiment remains well below where it was before the pandemic, yet Retail Sales rebounded in February, jobless claims are far from recession levels, and manufacturing output saw a small uptick.
The week ended with the Dow off 8 points, to 38,715; the S&P 500 down 0.1%, to 5,117; and the Nasdaq down 0.7%, to 15,973.
Bond prices were off for the week overall, though the 30-Year UMBS 5.5% went UP .78, to $99.01. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate decreased for the second straight week. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Younger people are ready to move. A new study found 63% of Gen Z and 59% of millennial respondents said they planned to buy a home in 2024, versus 45% of Gen X and 21% of baby boomers.
Market Forecast
HOME BUILDING, EXISTING HOME SALES, THE FED… Builders are expected to report increased activity in February, with Housing Starts up. But Building Permits should be down a tad, as pipelines are getting full, while Existing Home Sales will slip a bit. Wednesday, all eyes will be on the Fed, though virtually no one thinks the FOMC Rate Decision will be a cut.
Summary
More homebuyers are appearing as we move into the hot spring selling season. Demand for purchase mortgages rose for the second week in a row—up 7.1% for the week, according to the Mortgage Bankers Association.
Good news for buyers. Realtor.com reports the median listing price last week came in lower than it did in the same period a year ago. That marked the first week of year-over-year price declines since July of last year.
Inventory is clearly picking up. There were 500,000 single-family homes in active for sale inventory in the week ending March 8—100,000 more than a year ago—a monumental 21% increase.
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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