Fairfield Real Estate Market Update | February 05, 2024
Today I will be sharing with you our perspective on the local real estate market here in Cypress, Texas, specifically a market update for the neighborhood of Fairfield. 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 Fairfield?
We currently have 14 homes pending, with 4 homes sold in the last two weeks, averaging a sale price of $159 a square foot. Four homes sold over the asking price.
Compared to the two weeks prior: Homes sold are slightly down from 6 sold, and the average sales price is down as well. This is most likely a coincidence, so we will be sure to keep an eye on it over the next couple of weeks. 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 the neighborhoods. 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 Fairfield.
My Two Cents: What I learned this week
I can't help but feel a sense of anticipation - it's like the calm before the storm. My fingers are constantly on the pulse of the market, meticulously tracking website analytics. Recently, there's been an unmistakable uptick in buyer activity, a trend that has me genuinely excited about what's on the horizon.
This surge isn't just a blip on the radar. In my conversations with potential sellers, many are strategically waiting for March to list their properties. This decision isn't arbitrary; it reflects a growing confidence in the market's potential. The promise of increased inventory is exhilarating, not just for us in the industry, but for buyers and sellers alike.
Now, let's talk numbers – specifically, interest rates. Currently hovering in the 5s and 6s, these rates are playing a pivotal role. They're not just figures on a page; they represent the dreams and aspirations of real people looking to find their place in the world.
As we edge closer to spring, I'm struck by a sense of optimism. The market is poised for a revival, reminiscent of the 'good ol' days.' It's a time when opportunities abound, and the thrill of the hunt for the perfect home is as alive as ever. Stay tuned, as we may soon witness a vibrant spring market, bustling with activity and brimming with potential.
What is happening in the real estate market nationally?
Last week, mortgage rates trended higher. Mortgage application submissions declined, and jobless claims increased. The house price index increased in November, as did the seasonally adjusted Case-Shiller home price index. Construction spending ticked up in December.
|MORTGAGE RATES CURRENTLY TRENDING
|THIS WEEK'S POTENTIAL VOLATILITY
- Mortgage Rates dip after Fed meeting. Freddie Mac expects rates to decline more.
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- How many Fed rate cuts will we see in 2024?. Listen Now >>
- Federal Reserve holds interest rates steady, sets the stage for cuts. Watch Now >>
The house price index climbed to 417.4 in November, a 0.3% month-over-month and 6.6% year-over-year gain.
The seasonally adjusted Case-Shiller home price index increased 0.1% month-over-month in November, which was lower than the 0.5% expected gain.
The Job Openings and Labor Turnover Survey (JOLTS) climbed to a level of 9,026,000, which was higher than expectations.
The ADP National Employment Report dropped to a rate of 107,000, much lower than the expected level of 145,000.
Mortgage application submissions declined a composite 7.2% during the week ending 1/26. The seasonally adjusted Purchase Index fell 11% while the seasonally adjusted Refinance Index climbed 2%.
The Federal Open Market Committee (FOMC) voted to hold interest rates steady, leaving the benchmark interest rate at 5.50%.
Continuing jobless claims were at 1,898,000 during the week ending 1/20, a 70,000 surge from the week before. Initial jobless claims were at 224,000 the week ending 1/27, an increase of 9,000 from the week prior.
Construction spending exceeded expectations and rose 0.9% month-over-month in December.
In January, average hourly earnings increased 0.6% month-over-month while the average workweek slipped to 34.1 hours. Government payrolls were at 36,000, while manufacturing payrolls were at 23,000. Nonfarm payrolls were higher than expected at 353,000 and private nonfarm payrolls soared to 317,000. Though experts predicted a slight increase, the participation rate was unchanged at a level of 62.5%. The unemployment rate inched up to 7.2%.
Review of Last Week
NEW HIGHS... The S&P 500 and the Dow logged fresh record highs and the Nasdaq a new 52-week high, as traders sparked to a way-better-than-expected jobs report and strong earnings from some tech giants.
January's 353,000 new Nonfarm Payrolls, 0.6% hike in hourly earnings, and 3.7% unemployment rate delighted traders, who were disappointed Wednesday when Fed Chair Powell pretty much took a March rate cut off the table.
Yes, Powell is playing it cautious with rate cuts, fearing a return to rising inflation, yet he has to be happy with the labor market strength, increased business spending, lower labor costs, and higher productivity.
The week ended with the Dow UP 1.4%, to 38,654; the S&P 500 also UP 1.4%, to 4,959; and the Nasdaq UP 1.1%, to 15,629.
Overall bond prices also headed north, the 30-Year UMBS 5.5% finishing UP 0.84, at $100.12. Freddie Mac's Primary Mortgage Market Survey showed the national average 30-year fixed mortgage rate ticked down from the week before. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… An online real estate database reports a homebuyer with a $3,000 monthly budget can now afford a $453,000 home—up from $416,000 in October—a $37,000 increase in purchasing power.
MORTGAGE APPLICATIONS, SERVICES, JOBLESS CLAIMS... We'll keep an eye on the Mortgage Bankers Association MBA Mortgage Applications Index to check in on homebuyer activity. The ISM Non-Manufacturing Index is expected to show the dominant services sector of the U.S. economy still growing. Initial Unemployment Claims are forecast to come in lower for the week, indicating a still healthy labor market.
Spending on residential construction in December went up 1.4% from November, with spending on single-family homes up a solid 1.6%. Spending is up 9.9% on single-families compared to December a year ago.
The national S&P Case-Shiller Index reports home prices in November fell a tick, the first dip in 10 months, but they’re up 5.1% annually, and 6.6% by the FHFA price index of homes financed with conforming mortgages.
Realtor.com reports active inventory continues to grow. The number of homes for sale not under contract is now 10.1% above the level of a year ago, helped by an increase in new listings, up 2.1% 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.
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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