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 17 homes pending, with 0 home sold in the last two weeks.
Compared to the two weeks prior, no homes have sold in Memorial Northwest neighborhood. This is most likely a coincidence, so we will be sure to keep an eye on it over the next couple of weeks. 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 the neighborhoods. 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.
Insight From Jo
I recently came across an article on Realtor.com that caught my attention, and I wanted to share some thoughts with you. The article, titled “Brace Yourself: The Price Per Square Foot of an Average U.S. Home Has Jumped More Than 50% Since 2019,” revealed a staggering increase in the price per square foot of homes over the past five years.
While we often focus on the total size, list price, and location when house hunting, the price per square foot is an essential factor that's often overlooked. According to the latest monthly housing report from Realtor.com, the price per square foot has increased by a whopping 52.7% between May 2019 and May 2024. In comparison, the overall list price increase was smaller at 37.5%, bringing the national median to $442,500.
So, why does the price per square foot matter? Well, it allows us to easily compare homes of different sizes, assess the value of a property based on its location and condition, and identify price changes in specific areas. However, it's important to remember that the price per square foot is just one piece of the puzzle when evaluating a home's value. To get a more complete picture, we should also look at comparable properties, or “comps,” in the area.
I hope this insight helps you better understand the significance of price per square foot when considering a home purchase.
And there is one more thing I want to share with you this week…
In another article, “Mortgage rates at 3% were an ‘anomaly.' Here's what a normal 30-year rate looks like,” I gained a deeper understanding of the current state of mortgage rates and how they compare to historical norms.
As many of you may have noticed, mortgage rates have doubled to over 7% since the Fed raised interest rates in 2022. This increase has had a significant impact on home affordability. According to a Redfin analysis, at a rate of 7%, the median monthly mortgage payment for a $392,200 home is roughly $2,800, which is near a record high. In contrast, at a rate of 3%, that monthly payment would be close to $1,800.
It's important to note that while the 3% mortgage rates we saw during the pandemic were incredibly attractive, they were an anomaly. Historically, 6% mortgage rates are considered normal. However, after being spoiled by the very low rates during the pandemic, many buyers are finding it challenging to adjust to the current market conditions.
Looking ahead, Fannie Mae doesn't expect rates to return to 3% in our lifetimes. Instead, they predict a more normal range of 4.5% to 6% in the coming years. On a positive note, Fannie Mae also forecasts rates to fall below 7% as early as the start of next year, with home price growth slowing down as well.
While the current mortgage rates may seem daunting, it's important to keep things in perspective and understand that the market is gradually returning to a more balanced state.
If you have any questions or want to discuss this further, feel free to reach out! I'm here to help you navigate this market and make informed decisions.
Hugs, Jo
What is happening in the real estate market nationally?
Mortgage rates slid lower last week thanks to a cooler-than-expected consumer price index (CPI) report from May. Mortgage applications surged. The benchmark interest rate remained unchanged and jobless claims climbed higher.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- VA change to agent fees & latest updates on commission lawsuit settlements.
Listen Now >> - 5 things sellers can control in the current market. Read Now >>
- When will the Fed’s move alleviate the lock-in effect? Read Now >>
Market Recap
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Mortgage application submissions skyrocketed 15.6% during the week ending 6/7. The Refinance Index jumped 28% from the previous week while the seasonally adjusted Purchase Index climbed 9%.
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The consumer price index showed that inflation came in below expectations in May. While it was expected to climb 0.1% month-over-month and 3.4% annually, it was unchanged monthly and at 3.3% annually. The core index, which strips food and energy costs, was below expectations as well.
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The benchmark interest rate remained unchanged; however, the Federal Reserve did take two rate cuts off the table for 2024.
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Continuing jobless claims climbed by 30,000 during the week ending 6/1 – a higher-than-expected gain. Initial jobless claims jumped by 13,000 the following week, despite their predictions to fall.
Review of Last Week
GOOD NEWS FOR BULLS… The Dow slipped, but the tech-y Nasdaq finished at a new record high and the broadly-based S&P 500 ended just shy of one, as bullish traders reacted to Fed, inflation, and labor market news.
The Fed didn't touch rates, but announced there will likely be just one rate cut this year, down from the three they forecast in March. Yet they expect to get to 3.1% by 2026, so the end goal and timeframe didn't change.
Consumer Price Index (CPI) inflation came in lower in May, nice to see after the string of hotter inflation reads we've had, while an upward drift in jobless claims hinted at the looser labor market the Fed wants to see.
The week ended with the Dow down 0.5%, to 38,589; the S&P 500 UP 1.6%, to 5,432; and the Nasdaq UP 3.2%, to 17,689.
Bond prices headed up overall, though the 30-Year UMBS 6.0% fell by 1.10, to $99.12. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate continued to move down. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Although Realtor.com reports 16.6% of listed homes had price reductions in May, actual selling prices are still rising and are expected to keep doing so.
Market Forecast
HOME BUILDING, EXISTING HOME SALES, RETAIL SALES… Analysts expect home builders to ramp up activities in May, with both Housing Starts and Building Permits ahead for the month. More new homes will be welcome, as tight inventory is predicted to push down Existing Home Sales in May. Retail Sales are forecast up a bit in May, showing consumers keep helping things out.
All U.S. financial markets will be closed Wednesday, June 19, in observance of Juneteenth National Independence Day.
Summary
The Mortgage Bankers Association (MBA) reports purchase mortgage applications shot up 9%, while refinance applications surged 28% from the week before, 28% higher than a year ago.
The MBA also reported mortgage applications for new homes in May rose 13.8% over a year ago. Their home builders survey estimates May sales hit a 702,000 annual rate, the highest since last October.
CoreLogic says homeowners nationwide saw their equity increase the first three months of the year by 9.6%—an average gain of $28,000—over the same three months a year ago. It was the biggest gain since 2022.
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
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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?!
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