Memorial Northwest Market Update | May 09, 2022
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 Memorial Northwest. 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 Memorial Northwest?
We currently have 11 homes pending, with 4 homes sold in the last two weeks, averaging a sale price of $125 a square foot. Four homes sold over asking price, with one home selling 7.7% above the listing price. The market continues to rise. We are seeing steadily growing numbers and the inventory is staying pretty steady. Some of the homes listed this week were listed way under market value. We will probably see a drop in numbers over the next two updates due to homes like this. Please remember to hire someone local, in your subdivision if possible. When these homes sell for less they affect everyone, from buyers who can't meet appraisal because of your comparable, to your neighbors trying to borrow against their equity. You really are doing a disservice to your community if you allow agents unfamiliar with the area to list your home.
Check out the graphic below for a larger overview of the real estate market for the last two weeks in Memorial Northwest.
What is happening in the real estate market nationally?
Last week, mortgage rates trended upward as the Federal Reserve hiked the benchmark interest rate after the Federal Open Market Committee (FOMC) meeting. Construction spending increased in March. Job openings reached a record high. Mortgage application submissions jumped. In April, ADP employment slowed in growth. Continuing jobless claims decreased while initial jobless claims increased. The employment situation was generally positive.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
- The National Association of REALTORS® (NAR) unveils plan to help inventory crisis. Listen Now >>
- What the rebounding birth rates mean for housing. Read Now >>
- Are HELOCs heading for a surge in demand? Read Now >>
- U.S. construction spending increased 0.1% month-over-month in March to reach a seasonally adjusted annual rate of $1.73 trillion. This rate is 11.7% higher than March 2021. Residential construction spending led the way in spending increases for private construction – up 1% month-over-month in March. Nonresidential private construction spending decreased 1.2%.
- The Job Openings and Labor Turnover Survey (JOLTS) for March showed that job openings reached a series high of 11.5 million. The number of quits also increased to a series high of 4.5 million.
- Mortgage application submissions increased 2.5% during the week ending 4/29. Though the Refinance Index inched up 0.2%, the Purchase Index soared 4%.
- The ADP employment report for April showed an increase of 247,000 nonfarm jobs – a smaller growth rate than the 479,000 nonfarm jobs added the month before.
- The Federal Open Market Committee (FOMC) voted unanimously to raise the benchmark interest rate by 50 basis points, or 0.5%. This marks the largest rate hike in 22 years. It also decided to start shrinking the balance sheet. Both actions are in an effort to help curb record-high inflation.
- Continuing jobless claims fell to a level of 1.38 million during the week ending 4/23 while initial jobless claims rose to a level of 200,000 during the week ending 4/30.
- The employment situation had varying results in April. Average hourly earnings increased 0.3% month-over-month while the average workweek remained unchanged at 34.6 hours. Government payrolls soared by 22,000 and nonfarm payrolls increased by 428,000. Manufacturing payrolls increased by 55,000 and private payrolls increased by 406,000. The participation rate dropped slightly to 62.2% while the unemployment rate was unchanged at 3.6%.
Review of Last Week
GOOD FED, BAD FED... The stock markets suffered another week of losses as investors wondered: was the Fed's half percent rate hike--the largest in 22 years--good for inflation but bad for the economy?
The market rallied Wednesday after Fed Chair Powell said three quarter percent hikes were off the table, quelling concerns big hikes would spark a recession. But stocks sank Thursday on fears the Fed wasn't being tough enough on inflation.
Friday, we got a decent April jobs report--though labor force participation fell, signaling a need for higher wages to attract workers to the record number of job openings. Of course, that would lead to more inflation!
The week ended with the Dow down 0.2%, to 32,899; the S&P 500 also down 0.2%, to 4,123; and the Nasdaq down 1.5%, to 12,145.
Inflation-hating bonds took a heavy hit, the 30-year UMBS 4.5% down 0.87, to $100.30. Lower bond prices signal higher rates, so the national average 30-year fixed mortgage rate was up 17 basis points 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… Attom Data found that from 2011 to 2021, home sales closing in mid-to-late May went for the highest price premium of the year. The best day to close was May 23 when homes went for an 18.3% premium!
INFLATION ADVANCES, JOBLESS CLAIMS, CONSUMER SENTIMENT RECEDE... Inflation is expected to keep rising in March, though at a slightly slower pace in both the Consumer Price Index (CPI) and the wholesale Producer Price Index (PPI). Initial Unemployment Claims should drop, but so will University of Michigan Consumer Sentiment, still posting historical lows.
Residential construction spending rose 1.0% in March to an $882.0 billion annual rate, an 18.4% gain over a year ago. For single-family homes, construction spending is up 19.4% the past year.
Part of that spending increase is due to the cost of building supplies. The National Association of Home Builders says that lumber prices raised the price of a typical single-family home more than $18,600 in a recent four month period.
The Mortgage Bankers Association forecasts mortgage rates “are likely to plateau near current levels. The financial markets have attempted to price in the impact of Fed actions over this cycle, and…the economic slowdown that will result.”
Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months. Last week, the Fed said it would stick to half percent rate hikes at each of the next three meetings. Wall Street at the moment is buying that scenario. Note: In the lower chart an 83.4% probability of change is an 83.4% probability the rate will rise.
Probability of change from current policy:
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..
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, Jo.
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