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 6 homes pending, with 5 homes sold in the last two weeks, averaging a sale price of $127 a square foot. Five homes sold over the asking price, with one home selling 4% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 7 sold, but the average sales price per square foot is up to $448,400 ($415,129 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 Memorial Northwest.
My Two Cents: What I learned this week
Things have officially picked up. Don’t mind me over here doing my party dance. I have been seeing the increased online activity for about 6 weeks now, but this week people got in their cars and started house hunting. I have five clients ready to place orders, with half buying virtually.
I am seeing 1/3 financed resale, 1/3 new construction, and 1/3 cash. And all different price points and all different ages. 1/3 are coming from apartments and young and 2/3 are coming from out of state and as homeowners needing to sell.
The rumors were right this year, the spring market would hit late. And I did some research. Some of that is because other states, who are the ones that are buying right now, have spring break later in the year than us Texas folks.
There is good news in this though. I am still seeing new construction builders with interest rates 3.99% – 5% with resale looking at 6.5% before a buy down option. So there is something out there for everyone. I spent yesterday visiting three builders in the Porter area, and three builders in Katy, and they all have lowered their prices, many with high inventory. I am excited, and I cannot wait to hear from you.
What is happening in the real estate market nationally?
Mortgage rates trended lower last week thanks to the Fed’s rate cut projections for the remainder of the year. Builder confidence jumped higher in February, as did housing starts and building permits. Mortgage application submissions slipped slightly. Jobless claims were relatively unchanged and existing home sales surged in February.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Consumers are having a hard time deciding if they should buy or not. Watch Now >>
- Why we “dodged a bullet with the Fed, for now.” Listen Now >>
- NAR economist testified to Congress on behalf of first-time buyers. Read Now >>
Market Recap
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According to the National Association of Home Builders (NAHB) housing market index, builder confidence increased to positive territory in February, rising to a level of 51. This surged past expectations of a level of 48. Any reading above 50 is considered positive. Not only is this the highest level of confidence in eight months, but it is much higher than it was this time last year (a level of 44). In fact, all three of the index’s components exceeded their levels from March 2023.
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Housing starts and building permits also outperformed in February. Building permits were at a seasonally adjusted annual rate 1,518,000 – a 1.9% increase from the month before. The expected level was 1,500,000. Housing starts were at a seasonally adjusted annual rate of 1,521,000 in February, a whopping 10.7% increase from the month before. The expected level was 1,430,000.
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Mortgage application submissions slipped a composite 1.6% during the week ending 3/15. The refinance index decreased 3% while the seasonally adjusted purchase index decreased 1%.
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The Fed did not raise or cut interest rates at this month’s Federal Open Market Committee (FOMC) meeting. It did, however, release rate cut projections for the remainder of the year, which played to the favor of the bond market, and consequently mortgage rates.
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Continuing jobless claims were relatively unchanged during the week ending 3/9, rising just 4,000 to reach a level of 1,807,000. Initial jobless claims were relatively unchanged as well, falling by 2,000 during the week ending 3/16, down to a level of 210,000.
Review of Last Week
THREE CHEERS FOR THE FED… The Fed held rates but voted to stick with three rate cuts this year despite recent hot inflation reads. Traders cheered that news, sending the three major stock indexes to record highs.
The economy still gave mixed signals. The Philadelphia Fed Index of manufacturing activity in that region slipped in March, while weekly crude oil inventories fell, signaling increased demand and higher oil prices.
Nonetheless, initial weekly jobless claims remain well below recession levels, the Leading Economic Index for February stayed in positive territory, and we had the strong housing market data reported above.
The week ended with the Dow UP 2.0%, to 39,476; the S&P 500 UP 2.3%, to 5,234; and the Nasdaq UP 2.9%, to 16,429.
The bond markets also finished the week ahead, with the 30-Year UMBS 5.5% UP .09, to $99.10. After dropping two straight weeks, the national average 30-year fixed mortgage rate edged up slightly 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… Homesellers have just a few weeks to put their homes on the market during the best week to sell. Historically, listings posted the week of April 14 have seen the strongest buyer demand, the highest listing prices, and fewest days on the market, according to Realtor.com.
Market Forecast
NEW AND PENDING HOME SALES, CONSUMER SENTIMENT… We should see growth in New Home Sales for February, as builders cash in on growing demand. With existing home inventories increasing, the Pending Home Sales index of signed contracts on those homes is also expected to gain in February. University of Michigan Consumer Sentiment for March is forecast to reflect consumers' continued disappointment with inflation and the economy.
Summary
The housing market appears to be picking up. Existing Home Sales surprised with a 9.5% gain in February, the biggest in a year, following a healthy January increase. Inventories are up more than 10% the past year.
Plus, more new homes are on the way. Housing Starts went up more than 10% in February, with much needed single-family starts now up more than 35% from a year ago. Home completions are almost 20% up for the month.
Finally, more sellers are putting their homes on the market. In the week ending March 16, a whopping 17.8% more new listings hit the market compared to last year—the highest year-over-year growth rate in nearly three years.
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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