Memorial Northwest Real Estate Market Update | August 01, 2022
Hi neighbor, 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 15 homes pending, with 7 homes sold in the last two weeks, averaging a sale price of $115 a square foot. Seven homes sold over asking price, with one home selling 6.3% above the listing price. Compared to the two weeks prior: Homes sold are up from 4 sold to 7 home sold, and the average sales price is up: $465,857 ($345,125 previously). 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. We cannot pinpoint another time in history where you were almost guaranteed to get more than your homes current market value. Buyers agents around Houston are seeing a slow in the real estate market, but it isn’t affecting the neighborhoods with such high demand, like Memorial Northwest, so that is good news for anyone that waited until summer to sell. I know the interest rates rising has been one deterrent from some buyers purchasing right now, but that isn’t your ideal buyer anyways! And the educated buyer still knows, they need to buy ASAP. P.S. The median days on market is 6 days, with most homes selling during the first 4-5 days (aka a really good coming soon campaign like we do at Jo & Co. boosts that and your over asking price ratio!)
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?
Mortgage rates saw a sharp downward trend last week after the Federal Reserve’s rate hike and the GDP’s negative data. Home price appreciation slowed. New home sales fell. Mortgage application submissions saw a composite decrease. Pending home sales declined. Both continuing and initial jobless claims went down. Inflation increased, as did personal income and consumer spending.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
- Fed rate hike to create less competition in the housing market. Read Now >>
- Home price cuts are increasing as the end of summer draws near. Watch Now >>
- Home price growth will moderate soon. Listen Now >>
- The FHFA house price index showed that home price appreciation slowed to 1.4% in May, down from 1.5% in April. Year-over-year home price appreciation was 18.3%, which is 0.6% lower than the annual appreciation in April.
- The Case-Shiller home price index also showed slowed home price growth in May, down to 1.3% from 1.7% in April. Year-over-year, the 20-city index increased to 20.5%.
- New home sales fell 8.1% month-over-month in June, down to a level of 590,000. Possible causes could include higher rates and more existing homes available on the market.
- Mortgage application submissions fell a composite 1.8% during the week ending 7/22. Refinance application submissions fell 4% while purchase application submissions fell 1%.
- Pending home sales slipped 8.6% month-over-month in June as the middle of June was a period of particularly higher rates.
- The Federal Open Market Committee (FOMC) decided to raise the benchmark interest rate by another 75 basis points this month. This brings the federal funds rate to a range of 2.25% - 2.50%. In the FOMC statement regarding the hike decision, officials highlighted that job gains are still robust, unemployment is still low, but inflation levels still remain high.
- Continuing jobless claims fell to a level of 1.35 million while initial jobless claims fell to a level of 256,000.
- The GDP estimate for the second quarter of 2022 dropped 0.9%.
- Inflation according to the PCE index increased month-over-month and year-over-year – up 1% and 6.8% respectively. Personal income increased 0.6% and consumer spending increased 1.1%.
Review of Last Week
WEAK ECONOMY, STRONG MARKET... Investors digested disappointing economic news and a 0.75% Fed rate hike, yet they sent the three major stock indexes to big gains for the week and huge gains for the month.
They felt the bad news of a softer economy would bring the good news of slower Fed rate hikes. The bad news included a negative GDP read for the second straight quarter, the technical definition of a recession.
Investors shrugged off the highest PCE inflation reading since 1982, which could get the Fed hiking aggressively, and instead reveled in decent Q2 corporate earnings, with 76% of companies reporting beating forecasts.
The week ended with the Dow UP 3.0%, to 32,845; the S&P 500 UP 4.3%, to 4,130; and the Nasdaq UP 4.7%, to 12,391.
Bond prices gained overall, the 30-year UMBS 4.5% edging up to $101.25. After climbing for two weeks, the national average 30-year fixed mortgage rate fell 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… Realtor.com reports active inventory keeps growing, "rising 29% above one year ago.” Plus, “homes sold in June spent a record low time on market” and “data continues to suggest that homes priced well are selling.”
CONSTRUCTION SPENDING UP, MANUFACTURING AND SERVICES DOWN, MORE JOBS... June Construction Spending is expected to be up overall, but we'll check the residential part. Both ISM Manufacturing and ISM Non-Manufacturing Indexes are forecast down for July, though still indicating expansion. Analysts predict a 250,000 bump in Nonfarm Payrolls for July and Hourly Earnings increasing, yet not as much as inflation.
New Home Sales dove 8.1% in June, and are now down 17.4% from a year ago. This was blamed on declining affordability. Median prices are up 7.4% from a year ago. though they've fallen two months straight.
Pending Home Sales slipped 8.6% in June. The NAR’s chief economist blamed it on climbing mortgage rates, but added, “There are indications that mortgage rates may be topping or very close to a cyclical high in July.”
Home price growth is also slowing. The Case-Shiller index reported annual price gains decelerated in May, and the FHFA index of prices for homes financed with conforming mortgages dipped from its February peak.
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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