Fairfield Real Estate Market Update | July 10, 2023
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 28 homes pending, with 9 homes sold in the last two weeks, averaging a sale price of $167 a square foot. Nine homes sold over the asking price, with one home selling 4% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 11 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 text AER to 79564 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.
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?
Last week, mortgage rates trended higher. Construction spending in May increased. Mortgage application submissions decreased. The ADP nonfarm employment change for June was above expectations and the Job Openings and Labor Turnover Survey (JOLTS) for May was slightly below expectations. Continuing jobless claims declined and initial jobless claims climbed. The employment situation for June was a mixed bag.
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Construction spending saw a monthly increase of 0.9% in May.
Mortgage application submissions fell by a composite 4.4% during the week ending 6/28. The Refinance Index decreased by 4% while the Purchase Index decreased by 5%.
Continuing jobless claims declined by 13,000 during the week ending 6/24, bringing the total to 1,720,000 Initial jobless claims rose by 12,000 during the week ending 7/1, bringing the total to 248,000.
The ADP nonfarm employment change was at 497K in June. This is below the expected level of 228,000.
Job openings on the JOLTS were at a level of 9.824M in May.
Average hourly earnings were up 0.4%, which was above the expected increase of 0.3%. Average weekly hours were at 34.4, government payrolls were at 60,000, and manufacturing payrolls were at 7,000. Nonfarm payrolls were at 209,000, which was lower than the expected level of 225,000. The participation rate was at 62.6% and the unemployment rate was at 3.6%. Private nonfarm payrolls were at 149,000.
Review of Last Week
WEAK JOBS WEAKEN STOCKS... The three major stock indexes ended decidedly down for the week as June saw the fewest number of new jobs created in about two and a half years.
This showed the labor market is softening, although the increase in hourly earnings and drop in the unemployment rate allayed recession concerns, as more working consumers get more money to spend.
ISM Manufacturing was down, but ISM Non-Manufacturing showed the huge services sector still expanding. Initial jobless claims remained low and sales of cars and light trucks are up almost 21% from a year ago.
The week ended with the Dow down 2.0%, to 33,735; the S&P 500 down 1.2%, to 4,399; and the Nasdaq down 0.9%, to 13,661.
Like stocks, bonds were hammered, the 30-Year UMBS 5.5% falling 1.24, to $98.15. The national average 30-year fixed mortgage rate was up a tad 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… A survey from Realtor.com and Censuswide found that if newlyweds could create their wedding registry again, 80% would include an option for people to gift them money toward the down payment on a home.
INFLATION, JOBLESS CLAIMS… We'll see a few June inflation reports this week. Economists expect the Consumer Price Index (CPI) to edge up, as well as the Producer Price Index (PPI) of wholesale prices, which had moved down the month before. Initial Unemployment Claims should remain near their current low level. Unfortunately, these forecasts do not show the weaker inflation and labor market data the Fed wants to see.
Residential Construction Spending unexpectedly increased 2.2% in May, with a 1.7% gain in single-family builds. It was the first monthly gain in a year, as home builders ramp up to meet persistent homebuyer demand.
NAHB analysis of Census Bureau data showed that in the first three months of the year, almost 60% of single-family home building activity occurred in counties where baby boomers make up the majority of the population.
Home sale prices are rising again. A national online database reports that nationally the average home sale price came in above the original listing price for the first time since August of 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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