Oak Forest Real Estate Market Update | June 13, 2022
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 39 homes pending, with 13 homes sold in the last two weeks, averaging a sale price of $257 a square foot. Thirteen homes sold over asking price, with one home selling 7.6% above the listing price.
Compared to the two weeks prior: We haven’t seen big changes in the market. This week we have lower sales prices. This is most likely a coincidence, so we will be sure to keep an eye on it over the next couple of weeks. 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 over 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 Oak Forest, 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 16 days, with most homes selling during the first 14-15 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 Oak Forest.
What is happening in the real estate market nationally?
Mortgage rates trended upward last week. Consumer credit increased, mortgage application submissions decreased, continuing jobless claims were unchanged, and initial jobless claims rose slightly. The consumer price index showed that inflation is still climbing.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
- Home equity skyrocketed in Q1 of 2022. Read Now >>
- The number of homes under construction has never been higher. Watch Now >>
- Recent data is showing hope for home buyers. Read Now >>
- In April, consumer credit increased at a seasonally adjusted annual rate of 10.1%. Revolving credit, which includes monthly debt like credit card statements, increased at an annual rate of 19.6%. Non-revolving credit, which includes longer term debt like student loans and auto loans but excluding mortgage debt, increased at an annual rate of 7.1%.
- Mortgage application submissions decreased 6.5% during the week ending 6/3. The seasonally adjusted Refinance Index fell 6% while the seasonally adjusted Purchase Index fell 7%.
- Continuing jobless claims remained unchanged at 1.31 million during the week ending 5/28. Initial jobless claims increased slightly, to a level of 229,000 during the week ending 6/4.
- The consumer price index increased 1% month-over-month in May – higher than the 0.2% monthly increase in April. Year-over-year, inflation is at a level of 8.6% -- the highest inflation level in 40 years. The core consumer price index, excluding food and energy, however, had an unchanged monthly pace of increase at 0.6%. Year-over-year, the core consumer price index showed slowing inflation at a level of 6%.
Review of Last Week
- INFLATION CATASTROPHE... What one report called "catastrophically bad" CPI inflation data sent stocks on their worst ride south since January as investors worried the Fed would crank up the rate hikes and cause a recession.
- The Consumer Price Index showed inflation up a full 1.0% in May, and up 8.6% annually, the biggest gain since 1981. Core CPI slowed a bit, but that's of little interest to consumers, as it excludes soaring food and energy prices.
- Those consumers drove the University of Michigan Consumer Sentiment index down from 58.4 in May to 50.2, its lowest reading on record since 1978. Some good news? Continuing jobless claims were unchanged.
- The week ended with the Dow down 4.6%, to 31,393; the S&P 500 down 5.1%, to 3,901; and the Nasdaq down 5.6%, to 11,340.
- Inflation-hating bonds tanked overall, the 30-year UMBS 4.5% fell 1.81, to $99.31. After three weeks of declines, the national average 30-year fixed mortgage rate rose again 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… It's reported that the Fed holds $2.7 trillion in mortgage bonds bought as part of its “quantitative easing” program to keep mortgage rates low. As the Fed now starts “quantitative tightening”—selling those bonds—interest rates could come under more upward pressure.
HOME BUILDING HOLDS, INFLATION AND RETAIL GAINS, THE FED HIKES... May numbers for Housing Starts and Building Permits should show home building activity holding steady. The Producer Price Index (PPI) of wholesale price inflation is forecast to continue higher, which typically precedes a hike in consumer prices. Retail Sales are predicted up, and the Fed is expected to boost rates a half percent or more to get inflation under control.
Realtor.com has reported a significant turnaround in the number of homes for sale. For the week ending June 4, active inventory rose to 13% above a year ago, with the new listings part of that inventory up 2% from a year ago.
Nevertheless, Black Knight found there are just two months of inventory of single-family homes across the top 100 metros in the country, a historic low. They say four to six months of inventory puts a market in equilibrium.
Freddie Mac: "as mortgage rates increase…the material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers.”
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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