77379 Real Estate Market Update | July 17, 2023
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 77379. 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 77379?
We currently have 41 homes pending, with 8 homes sold in the last two weeks, averaging a sale price of $149 a square foot. Eight homes sold over the asking price, with one home selling 2% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 14 sold, but the average sales price per square foot is up to $149 ($148 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 text AER to 79564 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 77379.
Jo's Two Cents
I know this isn't new news, but the lack of active listings continues to weigh on existing home sales, while new construction inventory is up, which has the potential to meet some of the home demand. New construction isn't for everyone with its very apparent pros and cons, but I think all buyers should consider new construction this summer. Just in case you are curious, I wanted to chime in on the pros and cons from my perspective: Pros of new construction: - Built-in and extended warranties at no extra cost - Most builders are offering large incentives - Many options at all price points - Options in almost every city - Huge price cuts due to inventory high - Builders are typically willing to pay down interest rates - Low cost of maintenance - Brand new amenities Cons of new construction: - Typically a higher tax rate - Some new construction neighborhoods don't have their amenities built out yet - The schools might not be as highly-rated as the established areas - Typically on the edge of town If you are considering new construction, I would love to be your realtor. Duh, I know. Lol. This week's real estate facts and statistics:
- Nationally, existing home sales have dropped 20% in comparison to last year.
- According to the National Association of Realtors, existing home sales had their largest price decrease in 11 years. And this might have a correlation with the fact that many of the homes going under contract have longer days on the market because they are less desirable, driving the cost down.
- Total housing inventory was down last month by 6.1% compared to the same period in the previous year.
- New home sales jumped 20% in May, a 12.2% jump from April.
- New home inventory was 31% of the total inventory in May. Historically it is typically 10% to 15%.”
- The median sale price of new homes sold in May was $416,300 — down from the May 2022 median price of $449,000. The average sale price was $487,300, a decrease from the May 2022 average of $511,400. Locally we aren't seeing this in the neighborhoods with high demand and low inventory.
What is happening in the real estate market nationally?
Rate trends saw a huge improvement last week, tumbling lower after the release of June’s consumer price index. The index showed favorable inflation numbers. Additionally, consumer credit was much lower than expected in May and mortgage application submissions saw a composite increase. Continuing jobless claims rose while initial jobless claims fell.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
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Consumer credit was much lower than expected in May, at just 7.24 billion vs the 20.5 billion expected.
- Mortgage application submissions increased a composite 0.9% during the week ending 7/7. Though the Refinance Index decreased 1%, the seasonally adjusted Purchase Index increased 2%.
Inflation on the consumer price index (CPI) continued to cool in June and was below expectations across the board. Month-over-month, the CPI was at 0.2%, down from 0.4% the month before and lower than 0.3% expected. Annual inflation as at 4.8% versus the 5% expected. Monthly and annual core inflation, which strips food and energy costs, was below expectations as well, providing some nice relief for rate trends.
- Continuing jobless claims increased by roughly 10,000 during the week ending 7/1, rising to a total of 1,729,000. Initial jobless claims went in the opposite direction, falling by 10,000 to a level of 237,000.
Review of Last Week
LOWER INFLATION, HIGHER STOCKS... Seeing consumer prices head down, traders sent the major stock indexes up solidly for the week, believing the economy will avoid a recession and the Fed is close to ending rate hikes.
The June Consumer Price Index (CPI) posted inflation at a 3.0% annual rate, down from 4.0% in May, and at a third of its level a year ago. Wholesale prices and the Import-Export Price Index also reported inflation trending down.
Plus, initial weekly jobless claims are running well below recession levels, July University of Michigan Consumer Sentiment showed surprising improvement, and the first Q2 corporate earnings reports beat expectations.
The week ended with the Dow UP 2.3%, to 34,509; the S&P 500 UP 2.4%, to 4,505; and the Nasdaq UP 3.3%, to 14,114.
Inflation-hating bonds rallied too, the 30-Year UMBS 5.5% gaining 1.86, to $100.01. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate moved up. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Industry experts say the top home features this year are an abundance of natural light, followed by usable outdoor space, a kitchen island, laundry room, an energy-efficient HVAC system, and a home office.
HOME BUILDING, EXISTING HOME SALES, RETAIL SALES… June Housing Starts and Building Permits are expected to be down from May, as home builders concentrate on finishing projects already started. Thanks to low inventories, June Existing Home Sales are also forecast down. June Retail Sales should show a gain over May, indicating the economy is still in growth mode.
Black Knight’s home price index hit a new record high in May, showing that last year’s home price correction has now fully reversed. May’s 0.7% monthly gain equates to an 8.9% annualized growth rate going forward.
CoreLogic’s analysis revealed home prices grew in May for the fourth straight month. However, annual price growth dropped below 2% for the first time in 11 years, but CoreLogic forecasts a 4.5% price gain by May 2024.
Zillow reports the typical home value in June broke through $350,000 for the first time ever. The new peak of $350,213 eclipses the prior record set in July 2022 and will hopefully motivate more people to sell.
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.
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.
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If you are overwhelmed..
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