Oak Forest Real Estate Market Update | February 06, 2023
Today I will be sharing with you our perspective on the local real estate market here in Houston, Texas, specifically a market update for the neighborhood of Oak Forest. 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 Oak Forest?
We currently have 26 homes pending, with 6 homes sold in the last two weeks, averaging a sale price of $324 a square foot. Six homes sold over the asking price, with one home selling 1.4% above the listing price.
Compared to the two weeks prior: Homes sold are up from 5 homes sold to 6 homes sold and the average sales price is also up: $846,762 ($705,300 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 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 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 Oak Forest.
Jo's Two Cents
What is happening in the real estate market nationally?
The Federal Reserve lowered its interest rate hike to 0.25% last week. Mortgage rates were trending lower in the beginning of the week but ended the week trending higher after some unexpectedly elevated numbers in the employment situation reports. Home price appreciation continued cooling in November. January’s ADP nonfarm employment change was lower than expected while job openings on the Job Openings and Labor Turnover Survey (JOLTS) were higher than expected, as were the jobs reports in the employment situation. Construction spending decreased in December. Both continuing and initial jobless claims declined.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
- What the Fed’s rate hike means for the housing market. Read Now >>
- How the Fed’s next decision could impact mortgage rates. Watch Now >>
- 7 ways to capitalize on your home equity. Read Now >>
- The FHFA house price index fell 0.1% month-over-month in November after remaining unchanged in November. Annual home price appreciation slipped from 9.8% to 8.2%.
- The 20-city Case-Shiller home price index declined for the fifth consecutive month in November, falling 0.5%. Annual price appreciation fell from 8.7% to 6.8%.
- After rising for three consecutive weeks, mortgage application submissions dropped 9% during the week ending 1/27. The Refinance Index fell 7% while the Purchase Index slipped 10%.
- The ADP nonfarm employment change in January was lower than expected, rising 106,000 compared to the 178,000 predicted.
- Construction spending slipped 0.4% month-over-month in December, a larger-than-anticipated drop.
- Job openings on the JOLTS rose higher than expected in December, up to 11,012,000 vs. the 10,250,000 anticipated
- The Federal Open Market Committee (FOMC) voted for a smaller interest rate hike once again – slowing the pace to 0.25% after a 0.50% hike in December. This brought the Federal funds rate to a range of 4.50% - 4.75%
- Continuing jobless claims slipped slightly to a level of 1,655,000 during the week ending 1/21, down from 1,666,000 the week before. Initial jobless claims fell by 3000 during the week ending 1/28, bringing the total number to 183,000.
- Average hourly earnings climbed 0.3% in January and 4.4% annually. The average workweek increased slightly to 34.7 hours, up from 34.4 hours. Government payrolls increased by 74,000 jobs, manufacturing payrolls increased by 19,000, nonfarm payrolls increased by 517,000, and private payrolls increased by 443,000. The participation rate increased slightly to 62.4% and the unemployment rate slipped to 3.4%. Overall, the employment situation was much better than expected, which could have some less-than-ideal effects in the bond market and rate trends.
Review of Last Week
THE FED, THE JOBS... Stocks ended with the Dow a bit off, but the S&P 500 and Nasdaq up nicely. The week featured an expected quarter percent hike from the Fed and an unexpected 517,000 gain in January nonfarm payrolls!
But Fed Chair Powell acknowledged, "we have more work to do," implying there would be ongoing rate hikes until inflation came under control. We also had the ISM Manufacturing Index showing contraction in January.
However, the January ISM Non-Manufacturing Index booked a return to growth mode for the dominant services sector of the economy. Plus, productivity increased in Q4, and the week's initial and continuing jobless claims fell.
The week ended with the Dow down 0.2%, to 33,926; the S&P 500 UP 1.6%, to 4,136; and the Nasdaq UP 3.3%, to 12,007.
With the good jobs report, bonds dipped a tick overall, the UMBS 5.5% slipping .04, to $101.12. The national average 30-year fixed mortgage rate continued down 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… Freddie Mac noted the 30-year fixed rate is down from November, allowing “as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price.”
JOBLESS CLAIMS, CONSUMER SENTIMENT... A quiet week for economic data, but we'll keep an eye on Unemployment Claims, expected up a tad from last week. A healthy labor market is of course good for real estate. The preliminary February read on University of Michigan Consumer Sentiment is forecast to continue heading up, another good sign.
Spending on residential construction in December was a tick below November’s read. But for all of 2022, residential builders spent just under $900 billion, a 13.3% increase over 2021!
Realtor.com reports the active inventory of for-sale homes is now 69% above a year ago, with homes spending 14 more days on the market compared to last year, giving buyers more time to evaluate more options.
Nationally, home price growth continues to stabilize. The S&P CoreLogic Case-Shiller Index registered a 7.7% annual increase in November, down from 9.2% in October. This was the seventh straight month of annual price decelerations.
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.
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