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 11 homes pending, with 2 homes sold in the last two weeks, averaging a sale price of $145 a square foot. Two homes sold over the asking price, with one home selling 5% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 4 sold, but the average sales price is up to $470,000 ($458,375 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 77070.
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. The house price index rose in April while new home sales and pending home sales each fell in May. Mortgage application submissions increased.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- Buyers shifting towards more expensive homes. Watch Now >>
- Logan Mohtashami: A winning streak for mortgage demand. Listen Now >>
- Home prices begin to cool as active listings jump 35%. Read Now >>
Market Recap
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The house price index rose 0.2% month-over-month and 6.3% year-over-year in April. The monthly gain fell slightly below experts’ prediction of 0.3%.
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Mortgage application submissions increased 0.8% the week ending 6/21. The Refinance Index was essentially unchanged from the previous week and the seasonally adjusted Purchase index increased 1%.
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Building permits fell 2.8% month-over-month in May, a smaller decline than the expected 3.8% drop.
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New home sales plummeted in May, falling 11.3% month-over-month.
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Continuing jobless claims jumped by 18,000 the week ending 6/15, climbing to a level of 1,839,000. The week ending 6/22, initial jobless claims saw a decline of 6,000, falling to a level of 233,000.
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Pending home sales reported a monthly decline of 2.1% in May, falling short of experts’ predictions of a 0.6% monthly increase.
Review of Last Week
AHEAD AT THE HALF… For the week, two of the major stock indexes ended a tick down, one a tick up, but all three finished well ahead for the first half of the year, the Dow up 3.8%, the S&P 500 up 14.5%, and the Nasdaq up 18.1%!
Investor optimism has been fueled by hopes the Fed's elevated rates would slow the economy to a “soft landing” without a recession, and bring down inflation, so the central bank could then start cutting rates.
Evidence of moderating inflation came with May PCE Prices. A slowing economy was seen with continuing jobless claims the highest since 2022, while the case for a soft landing was supported by increased consumer spending.
The week ended with the Dow down 0.1%, to 39,119; the S&P 500 down 0.1%, to 5,460; and the Nasdaq UP 0.2%, to 17,733.
Bond prices fell overall, though the 30-Year UMBS 6.0% finished UP 1.11, at $100.17. Freddie Mac's Primary Mortgage Market Survey reported the national average 30-year fixed mortgage rate continued down, “hitting the lowest level in almost three months.” Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Flippers are seeing better returns. ATTOM Data reports that in Q1 this year, a typical flip at the national level netted $72,375, up from $65,000 in the prior quarter, and closing in on the 2022 peak of $80,000.
Market Forecast
CONSTRUCTION SPENDING, FED MINUTES, JOBS… May Construction Spending is expected to be up a bit overall, and we'll keep any eye on the residential part. We'll also check the FOMC Minutes from the Fed's last meet for signs of when the first rate cut could happen. Friday's May jobs report should show some weakening in the labor market, with new Nonfarm Payrolls drifting under 200,000 and the Unemployment Rate at 4.0%.
All U.S. financial markets will close early on Wednesday, July 3, and will be closed Thursday, July 4, in observance of Independence Day.
Summary
Following back-to-back monthly gains, New Home Sales declined in May. But good news for buyers, total new home inventories hit a new post-pandemic high, and the median sales price is now 9.3% below its 2022 peak.
The Pending Home Sales index of signed contracts on existing homes dipped in May. But the National Association of Realtors noted, “supply and demand movements suggest easing home price appreciation in upcoming months.”
That easing is already happening. The FHFA’s Home Price Index noted “the appreciation rate slowed in April,” while Case-Shiller reported their home price index “has decelerated from the start of the year.”
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/
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