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 Oak Forest. 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 Oak Forest?
We currently have 28 homes pending, with 9 homes sold in the last two weeks, averaging a sale price of $276 a square foot. Nine homes sold over the asking price, with one home selling 2% above the listing price.
Compared to the two weeks prior: The number of homes sold is still the same. The average sales price in the neighborhood is $641,167. 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 Oak Forest.
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?
Last week, mortgage rates trended slightly higher. Retail sales declined in May, as did both housing starts and building permits. Mortgage application submissions rose while housing market sentiment dipped in June.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
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Market Recap
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Retail sales declined 0.1% month-over-month in May, falling below the expected 0.3% increase.
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The National Association of Home Builders (NAHB) housing market sentiment index dipped to a level of 43 in June. Experts had predicted the index would remain at a reading of 45.
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Mortgage application submissions rose 0.9% the week ending 6/14. The Refinance Index dipped marginally. The purchase index climbed 1.6% from the week prior.
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Building starts declined 3.8% month-over-month in May, falling short of the 0.7% predicted increase and dipping to a level of 1.386M.
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Housing starts slipped 5.5% month-over-month in May. While experts had predicted a monthly increase of 0.7%, housing starts fell to a level of 1.277M.
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Continuing jobless claims climbed by 18,000 to reach a level of 1,828,000 during the
week ending 6/8. Initial jobless claims fell by 5,000 the following week, dipping to a level
of 238,000. -
Existing home sales declined slightly in May, dipping 0.7% month-over-month to a level of 4.11M. Following April’s 1.9% drop, May’s reading was higher than expected.
Review of Last Week
STILL POSITIVE… The three major stock indexes posted positive results for the holiday-shortened week despite some negative data, led by University of Michigan Consumer Sentiment, now 30% below its pre-pandemic level.
Folks aren't thrilled that prices overall have risen about 21% since 2020, the largest four-year increase over the past 40 years. Small wonder we got weaker-than-expected May Retail Sales.
We also saw the Leading Economic Index down for the second month in a row. But stronger-than-expected Industrial Production and in-line Business Inventories should allay concerns about a hard-landing for the economy.
The week ended with the Dow UP 1.5%, to 39,150; the S&P 500 UP 0.6%, to 5,465; and the Nasdaq UP less than 0.1%, at 17,689.
Prices slipped in the bond market, the 30-Year UMBS 6.0% dipping 0.06, to $99.06. The national average 30-year fixed mortgage rate fell for the third straight week 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… A recent Harris Poll found that over half of Americans erroneously believe mortgage rates are now at an all-time high, and only 36% know that a down payment of 20% is NOT required to purchase a home.
Market Forecast
NEW AND PENDING HOME SALES, HOME PRICES, INFLATION… There should be a rebound in May for both New Home Sales and the Pending Home Sales index of signed contracts on existing homes. Analysts expect home price growth to slow as measured by both the S&P Case-Shiller and the FHFA home price indexes. Friday, PCE Prices, the Fed's favorite inflation measure, is forecast to slow.
Summary
Housing Starts slipped about 5% in May, but demand should improve. Low existing home inventory is sending buyers to new builds, and millennials, the largest living generation in the U.S., are entering the housing market in force.
Because of that low inventory, Existing Home Sales dipped in May, but just down less than 1% for the month. And there are signs of progress. Inventories have risen 18.5% the past year, and that trend looks to continue.
A Harvard University study revealed a whopping 13% of Americans move every year. This underscores the fact that the life events that cause people to move keep happening regardless of market conditions.
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
If you are looking to relocate to the Houston Area, we would love to meet you, and hear your story. Below you will find all of my contact information, as well as some homes for sale in the area. We truly look forward to hearing from you! P.S. Don't forget to check out our YouTube Channel!
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?!
• Navigate our Blog: https://byjoandco.com/categories-to-help-you-navigate-the-blog/
• Download our Moving to Texas ebook! http://byjoandco.com/movingtotexasebook.
• Download our Where to Live in Houston Texas ebook! http://byjoandco.com/wheretoliveebook.
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