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 29 homes pending, with 10 homes sold in the last two weeks, averaging a sale price of $302 a square foot. Ten homes sold over the asking price.
Compared to the two weeks prior: Homes sold are up from 5 homes sold to 10 homes sold and the average sales price is also up to $647,350 ($365,000 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
Interest rates are back where they were in March, and inventory is high. With a seller buy down right now is a great time to buy.
We foreshadow once the interest rates drop, the increase of buyers to increase home prices, which will lead to a dry up of the move in ready homes. New construction is still offering some amazing opportunities. Feel free to schedule a call if you want to discuss your options.
With summer coming to a close over the next couple of weeks, we are enjoying the sunshine and look forward to meeting you soon.
What is happening in the real estate market nationally?
Mortgage rates hit their lowest levels of the year last week after the Fed opted to leave the benchmark rate unchanged (but hinted at a cut in September). Home price appreciation slowed, and the employment sector weakened. Mortgage application submissions decreased while jobless claims hit long-term highs. Pending home sales surged past expectations, while construction spending declined.
| MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
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Notable News
- HousingWire reporter talks local housing markets, inventory, and pricing. Listen Now >>
- Why are home payments skyrocketing? Watch Now >>
- How NAR is preparing the industry for upcoming practice changes. Read Now >>
Market Recap
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The 20-city seasonally adjusted Case-Shiller home price index inched up 0.3% month-over-month in May. Annually, the index was at 6.8%. Both the annual and monthly levels were a deceleration from the previous month.
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The Job Openings And Labor Turnover Survey (JOLTS) showed that there were 8,184,000 job openings in June. Though this was higher than the expected level, it was a decrease in openings from the month before.
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Mortgage application submissions decreased 3.9% during the week ending 7/26. Refinance application submissions decreased 7% while the purchase application submissions decreased 2%. Year-over-year, refinance application submissions were up 32%.
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The ADP nonfarm employment change in July came in below expectations at 122,000. This is a decline from June’s change of 155,000.
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Pending home sales soared 4.8% in June, more than double the expected increase of 1.4%.
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The Federal Open Market Committee (FOMC) voted to leave the benchmark interest rate unchanged this month, however, Jerome Powell hinted at a rate cut in September.
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Continuing jobless claims rose by roughly 30,000 to reach 1,877,000 – the highest level in 3 years – during the week ending 7/20. Initial jobless claims increased by 14,000 to reach a level of 249,000 during the week ending 7/27. This was the highest level in a year. Both numbers for initial and continuing claims point to weakness in the labor market.
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Construction spending slipped 0.3% month-over-month in June. It was expected to increase 0.2%, which is a possible signal of a weakening economy.
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The employment situation showed notable weakness in July. Average hourly earnings slipped to 3.6% annually with just a 0.2% increase month-over-month. The average work week shrunk to 34.2 hours. Government payrolls increased by 17,000, manufacturing payrolls increased by 1000, while nonfarm payrolls increased by 114,000. Nonfarm payrolls were expected to climb 176,000. Private payrolls fell below expectations too, coming in at just 97,000 versus the 148,000 expected. Though the participation rate inched up to 62.7%, the unemployment rate rose to 4.3%, which was its highest level since 2021.
Review of Last Week
OOPS!… As expected, the Fed did no rate cut Wednesday, but stocks cratered the rest of the week, as traders reacted to data that made them feel the economy is headed for a deeper slowdown while the Fed stays on pause.
Initial jobless claims ballooned to 249,000, indicating softening in the labor market. That was reinforced by a net gain of just 85,000 jobs in July, a jump to a 4.3% unemployment rate, and a deceleration in hourly earnings.
But there were some positive corporate earnings reports. Plus, we got better-than-expected productivity and slower labor cost growth, which will give the Fed more confidence inflation is easing.
The week ended with the Dow down 2.1%, to 39,737; the S&P 500 also down 2.1%, to 5,347; and the Nasdaq down 3.4%, to 16,776.
Traders flocked to bonds, pushing prices up solidly overall, with the 30-Year UMBS 5.5% UP 1.02, to $100.14. The national average 30-year fixed mortgage rate declined to its lowest level since February 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… Last year, 45% of home sellers were baby boomers (ages 59 to 77). Combined with sellers from the silent generation (78 and up), the two groups accounted for over half of all home sales, a trend expected to continue.
Market Forecast
MORTGAGE APPLICATIONS, SERVICES, JOBLESS CLAIMS… We'll check the weekly MBA Mortgage Applications Index for signs of increased activity as conditions improve for buyers. Economists expect the ISM Non-Manufacturing Index to show that dominant sector of the economy back in growth mode. Weekly Initial Jobless Claims are forecast to remain at their recently elevated level.
Summary
Pending Home Sales surprised to the upside in June, moving ahead nearly 5% over May. This measure of signed contracts on existing homes gained for the month in all four U.S. regions, thanks to the rise in housing inventory.
But inventories are still low, pushing up the Case-Shiller National Home Price Index for the 11th straight month. Still, the May annual home price gain was down from April, so prices are going up nationally at a slower pace.
Home builders spent at a slightly lower yearly rate in June than May. But we're still headed in the right direction, as spending on new home construction year-over-year is up more than 7% overall, and up almost 10% for single-families.
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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