Memorial Northwest Real Estate Market Update | January 30, 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 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 7 homes pending, with only 1 home sold in the last two weeks, averaging a sale price of $123 a square foot. One home sold over the asking price.
Compared to the two weeks prior: Homes sold are slightly down from 2 sold, but the average sales price is up to $360,000 ($232,500 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 Memorial Northwest.
Jo's Two Cents
What is happening in the real estate market nationally?
Mortgage rates were relatively unchanged last week. Mortgage application submissions increased yet again, continuing jobless claims climbed, and initial jobless claims fell. The GDP estimate for Q4 cooled slightly compared to the previous estimate. New home sales and pending home sales both had unexpected gains last month. Inflation continued cooling in December as did personal income and consumer spending.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
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- Mortgage application submissions rose a composite of 7% during the week ending 1/20, likely resulting from the lower trend in mortgage rates. Refinance application submissions continued their resurgence from the previous week, climbing an additional 15%. Purchase application submissions didn’t disappoint either, increasing by 3%.
- Continuing jobless claims jumped by 20,000 during the week ending 1/14 to reach 1,675,000. Initial jobless claims slid by 6,000 during the week ending 1/21 down to 186,000.
- GDP climbed 2.9% in the most recent fourth-quarter estimate of 2022. This was higher than expectations but lower than the previous estimate.
- New home sales climbed 2.3% month-over-month in December, a shocking gain vs. the 4.7% decline that was expected. This marks the third consecutive month of new home sales gains. Home builders are one of the biggest assets to housing supply in the current market, so they’re seeing jumps in sales.
- The Federal Reserve’s preferred method of measuring inflation showed that prices continued cooling in December. Month-over-month, inflation climbed 0.1%, which was lower than expectations. The annual PCE index was at 5% -- much lower than the 5.5% expected. The Federal Reserve mostly focuses on the core PCE index, which was in line with expectations at 0.3% month-over-month and 4.4% annually. Personal income dropped from 0.3% in November to 0.2% in December. Consumer spending fell for the second month in a row, dropping 0.2%.
- Pending home sales posed a surprising 2.5% monthly gain in December. This marks the first gain in six months. They were expected to fall by 0.9%. A big dip in mortgage rates was a likely contributor.
Review of Last Week
BACK TO THE RALLY... After the prior week's losses, traders put their rally caps back on and sent the three major stock indexes up strongly on signs the Fed is curbing inflation without a big boost in unemployment.
The PCE Price index, the Fed's favorite measure, showed inflation moderated from November's 5.5% read to 5.0% in December. Meanwhile, initial weekly jobless claims fell by 6,000, to 186,000.
In addition, the economy grew at a 2.9% annual rate in Q4, there were some strong quarterly corporate results, and Durable Goods Orders and University of Michigan Consumer Sentiment came in better-than-expected.
The week ended with the Dow UP 1.8%, to 33,978; the S&P 500 UP 2.5%, to 4,071; and the Nasdaq UP 4.3%, to 11,622.
Bond prices ended flat overall, but the UMBS 5.5% rose .05, to $101.16. Freddie Mac's Primary Mortgage Market Survey showed the national average 30-year fixed mortgage rate continued to trend down. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… New Home Sales and Pending Home Sales are timelier indicators of where real estate is heading because they’re calculated when contracts are signed. So, it was good news that both trended up in December.
CONSTRUCTION SPENDING, MANUFACTURING, SERVICES, JOBS, THE FED... December Construction Spending is expected to come in flat. The ISM Manufacturing Index is forecast to show contraction, but ISM Non-Manufacturing may reveal expansion. There should be modest gains in Nonfarm Payrolls, Average Hourly Earnings, and the Unemployment Rate. We'll also get the Fed's FOMC Rate Decision, projected to be a quarter percent hike.
New Home Sales headed up 2.3% in December. They’re still down from a year ago but the recent trend has been positive—nationally, sales activity has been rising for the past three months in a row.
More good news: the supply of completed homes has risen rapidly. There is now a 9.0 months’ supply of new homes for sale, a significant increase from the 3.3 months’ supply early in the pandemic.
Also encouraging, the Pending Home Sales index of signed contracts on existing homes rose for the first time since last May. The NAR observed, “recent declines in rates are clearly helping to stabilize the market.”
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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