Oak Forest Real Estate Market Update | October 17, 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 20 homes pending, with only 2 homes sold in the last two weeks, averaging a sale price of $257 a square foot. Two homes sold over the asking price, with one home selling 2% above the listing price.
Compared to the two weeks prior: Homes sold are slightly down from 12 sold, but the average sales price is up to $770,000 ($667,792 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 Oak Forest.
Jo's Two Cents
I assume you know who Opendoor is. Opendoor is an online company that buys and sells residential real estate. Headquartered in San Francisco, it makes instant cash offers on homes through an online process, makes repairs on the properties it purchases, and relists them for sale. For many months of the last few years, they have manipulated our real estate market in positive and negative ways. And today I want to share with you what they are up to right now.
- According to a column by Mike DelPrete in Inman, Opendoor is selling homes for less than it paid for the first time in its existence.
- People in the industry have talked about whether buying would be as successful in a down or even normal market. Zillow exited the buying market last year and instead partnered with Opendoor. It was a classic example of “if you can’t beat them, join them.”
- Now, DelPrete reports that the buy-to-sale premium of Opendoor has reached a record, negative low.
- Opendoor is selling around 2,000 houses per month with an average sale price of $400,000. A buy-to-sale loss of two percent amounts to a $16 million loss.
- As I type this, Opendoor has the second-largest number of listings for sale in the HAR MLS with 652 properties for sale. It is also ranked fifth in terms of year-to-date listing side transactions.
- Opendoor Exclusives, where the parent company, which is not an MLS subscriber, puts properties up for sale for 14 days before they go into the MLS under Opendoor Brokerage, are only active in Austin, Dallas-Fort Worth, and Houston currently. It will be interesting to see how successful that effort is and whether they expand to other markets.
- DelPrete also reports that Opendoor is racking up seller concessions and buyer agent bonuses to unseen levels.
I believe a lot of things have created the situation described above. I view it as a perfect storm. And what are the components of this perfect storm? The individuals in charge of buying the homes are not invested and they are purchasing homes above market value, the homes being purchased are lemons with lots of issues that are not repaired before being listed, and there is something "wrong" with many of these homes that only a local would pick up on. I feel for the Opendoor founders and investors, but their loss is your gain. If you are looking for a deal, you might want to look at an Opendoor listing.
Also on my mind these days is the excessive talk of doom in the real estate world in relation to our futures. Too much of the real estate and economic news these days isn’t overly positive. I do recognize that there is a market shift, but I also recognize this has created new and different opportunities. And what is actually happening is a normalization of the market. I truly believe that. As do all others who aren't trying to sell newspapers or throw their clickbait in your face.
And I have some good news to share with you. But first I think it is super important to study the real estate market on a micro level.
So it was reported by the First American Real House Price Index, as reported by Inman News (real estate news provider), that the number of US housing markets considered 'overvalued' quadrupled in 2022. But the good news is that Houston was not on the list that included 19 housing markets. Markets that were on the list include six markets in California, Tampa, Miami, Austin, and San Antonio.
What is happening in the real estate market nationally?
Mortgage rates were relatively unchanged last week. Mortgage application submissions fell, while jobless claims inched up. The consumer price index for September came in hotter than expected. Retail sales were unchanged.
|MORTGAGE RATES CURRENTLY TRENDING
|THIS WEEK'S POTENTIAL VOLATILITY
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Mortgage application submissions slipped 2% during the week ending 10/7. Both purchase application submissions and refinance application submissions decreased 2%.
Continuing jobless claims increased a slight 3,000 during the week ending 10/1. Initial jobless claims increased by 9,000 during the week ending 10/8.
The consumer price index for September increased 0.4% month-over-month, doubling the expected increase and much higher than the 0.1% increase in August. Annual inflation was higher than expectations as well, up 8.2%. Core inflation, stripping out food and energy had the same monthly increase as August – 0.6%. Annual core inflation was higher than expectations at 6.6%.
Monthly retail sales were unchanged in September. Year-over-year, retail sales were up 8.41%, slightly lower than the annual increase in August.
Review of Last Week
INFLATION DEFLATION... The Fed, the stock markets, and the rest of us are all looking for a sign inflation is easing, but it didn't come with September's higher-than-expected 8.2% Consumer Price Index (CPI).
Plus, Core CPI, excluding food and energy, rose to its highest level in 40 years and the Producer Price Index (PPI) saw wholesale prices up 8.5%. The S&P 500 and the Nasdaq ended the week deflated, the Dow with a modest gain.
Flat September Retail Sales showed inflation has consumers trimming spending and University of Michigan Consumer Sentiment posted higher inflation expectations, both pointing to more aggressive rate hikes from the Fed.
The week ended with the Dow UP 1.2%, to 29,635; the S&P 500 down 1.6%, to 3,583; and the Nasdaq down 3.1%, to 10,321.
Inflation-hating bonds got hammered, the 30-year UMBS 5.5% down 0.99, to $98.09. Lower bond prices mean higher rates, so the national average 30-year fixed mortgage rate moved up 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… Existing home sales have been forecast at 5.15 million in 2022, down 15.8% from 2021’s 15-year high. But compared to the average existing home sales of the eight years before the pandemic (2012-2019), 2022 is down only 0.9%
HOUSING STARTS, EXISTING HOME SALES, JOBLESS CLAIMS ALL SLIP... September reports should show Housing Starts slowing, although Building Permits are expected to gain, a good sign. September Existing Home Sales are forecast down, but the drop in weekly Initial Jobless Claims will show the labor market stays strong.
Realtor.com reports active inventory continued to grow in the week ending October 1, 30% above one year ago, although down from pre-pandemic levels. Homes spent six more days on the market than a year ago.
Fitch Ratings expects home prices to fall but sees more of a correction rather than a crash, citing “still constrained” housing inventory, a “strong job market,” and “prudent lending standards.”
The Mortgage Bankers Association noted, “The news that job growth and wage growth continued in September is positive for the housing market, as higher incomes support housing demand.”
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.
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