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 26 homes pending, with 10 homes sold in the last two weeks, averaging a sale price of $307 a square foot. Ten homes sold over the asking price, with one home selling 4% above the listing price.
Compared to the two weeks prior: Homes sold are up from 9 homes sold to 10 homes sold and the average sales price is also up to $834,700 ($641,167 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 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 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 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?
Mortgage rates cooled slightly last week. Construction spending declined in May, while job openings were higher than expected. Mortgage application submissions declined a couple weeks ago. The ADP nonfarm employment change came in lower than expected in June. Jobless claims came in higher than expected. The employment situation showed weakness in June.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- CMG’s Melissa Harbourne and Candy Nowak named 2024 Women of Influence. Read Now >>
- Housing market could be showing signs of softening, benefitting hopeful buyers. Watch Now >>
- The Fed is winning its war against the labor market, which could mean good news for rates. Read Now >>
Market Recap
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Construction spending slipped 0.1% month-over-month in May. It was expected to climb by 0.3%.
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In May, job openings on the Job Openings and Labor Turnover Survey (JOLTS) were roughly 200,000 higher than the expected level of 7,960,000.
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Mortgage application submissions dropped 2.6% during the week ending 6/28. The Refinance Index decreased 2% from the previous week and was 29% higher compared to the same time last year. The seasonally adjusted Purchase Index decreased 3% from one week earlier.
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The ADP nonfarm employment change came in lower than expected in June, at 150,000 (versus 163,000).
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Continuing jobless claims were at 1,858,000 during the week ending 6/22, which was higher than expected and an increase from the previous week. Initial jobless claims increased by 4,000 during the week ending 6/29, bringing the total level to 238,000.
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The collection of employment situation reports showed some weakness in the job market in June. Though the headline number of nonfarm payrolls came in slightly higher than expected at 206,000 (versus 191,000), there were big negative revisions to the previous two months’ numbers. Additionally, private nonfarm payrolls came in well below expectations at 136,000. Manufacturing payrolls shed 8,000 jobs while government payrolls added 70,000 jobs. Average hourly earnings declined slightly at 0.3% month-over-month and 3.9% year-over-year. While the participation rate inched up 0.1% to 62.6%, the unemployment rate rose to 4.1%, which is the highest level since November 2021.
Review of Last Week
CLOSER TO CUTS… Led by the June jobs report, the economic data revealed a slowing economy. Thinking that data will push the Fed closer to rate cuts, traders sent the S&P 500 and the Nasdaq to new record highs.
Nonfarm payrolls increased 206,000 in June, but the net gain was 95,000 after April and May were revised down by 111,000. The unemployment rate hit 4.1%, up from 3.6% a year ago, while wage growth slowed to 3.9% annually.
ISM Services fell to its lowest level in more than four years, showing that major economic sector is contracting, along with manufacturing. But a rate cut could help the Fed engineer a soft landing for the economy and avoid recession.
The week ended with the Dow UP 0.7%, to 39,376; the S&P 500 UP 2.0%, to 5,567; and the Nasdaq UP 3.5%, to 18,353.
Bonds also rose overall, though the 30-Year UMBS 6.0% slipped just 0.05, to $100.12. After a few weeks of declines, the national average 30-year fixed mortgage rate edged up a tick 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… Freddie Mac now has a platform to help housing professionals assist buyers with down payment assistance (DPA) programs. DPA One® is a one-stop shop to match buyers to the eligibility requirements of DPA products.
Market Forecast
MORTGAGE APPLICATIONS, INFLATION, CONSUMER SENTIMENT… We'll check the MBA Mortgage Applications Index for any increase in purchase applications. Economists expect inflation growth to moderate in June in both the Consumer Price Index (CPI) and the wholesale Producer Price Index (PPI). University of Michigan Consumer Sentiment should remain at a low level in July.
Summary
Spending on residential construction in May came in just a tick below April, but builder spending is up more than 6% from May a year ago. Plus, spending on much-needed single-family homes is almost 14% ahead of last year.
According to CoreLogic, price growth is already slowing. Their Home Price Insights (HPI) report had prices in May up only 0.6% from April, with the annual gain at just 4.9%–the first time it’s fallen below 5% this year.
Realtor.com reports the number of homes actively for sale in May was 35.2% higher than a year ago, the seventh straight month of annual growth. Plus, sellers were more active, with a 6.2% gain in newly listed homes versus last 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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