Oak Forest Real Estate Market Update | September 19, 2022
Hi neighbor, 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 11 homes sold in the last two weeks, averaging a sale price of $277 a square foot. Eleven homes sold over the asking price, with one home selling 8% above the listing price.
Compared to the two weeks prior: Homes sold are up from 6 homes sold to 11 homes sold and the average sales price is also up: $720,627 ($599,493 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
Nationally, we are seeing an increase in average days on market, which locally is only affecting 30-50% of homes. Which means, we are seeing an increase in inventory. Personally, we will be able to confirm this, when we have new market report data to look at October 1st. This is good news for buyers who recognize that mortgage interest rates in the five to six percent range may seem high compared to the last couple of decades, but they are still low compared to any year going back as far as 1970. The number of new listings coming on the market has waned, but the increase in inventories is seen more so from a sharper decrease in buyer demand. All of this provides possible opportunities for buyers who remain in the market and might be able to come to a sales price that sellers might not have agreed to even a few months ago.
New construction contract canncellations are up locally and nationally, bringing the available new construction inventory in the Houston MLS to 9,030 homes. This is insanely good news for anyone looking to buy an inventory home right now. The incentives that are being offered are the best I personally have ever seen. Most builders are offering between $10,000 and $30,000 towards closing costs and/or offering to buy down interest rates to the three percents and four percents. Here is a list I gathered a couple of weeks ago showcasing some of the builders offering really low-interest rate locks. The last two to three years were absolutely abnormal, so with normalcy and stabilization on the horizon, we should see the market pick back up post November.
Recently the Mortgage Bankers Association reported that mortgage applications are also at 22-year lows, according to a MarketWatch article. That is due to a combination of lower sales but also a refinancing market that has dried up. They do say they see things turning around in the not-too-distant future, as economic data shows the job market is strong. That means higher wages, which means people can afford more. That combined with more inventory on the market means sales should eventually increase.
What is happening in the real estate market nationally?
Mortgage rates trended higher last week after inflation levels for August came in much hotter than expected. Mortgage application submissions dropped. Initial jobless claims decreased while continuing jobless claims increased. Retail sales increased in August.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
- Wells Fargo’s Equity Research Division names CMG Financial a Best Mortgage
Company to Work For. Read Now >>
- CMG Financial raises conforming loan limits early. Read Now >>
- HELOC origination is surging. Listen Now >>
While experts had predicted inflation would fall in August, it rose 0.1% month-over-month according to the consumer price index. Annual inflation levels were also higher than expected, at 8.3% vs. 8.1% predicted. Surprisingly, the main contributors to the rise didn’t appear to be gas or energy due to the core consumer price index levels that were twice as high as expectations, rising 0.6% month over month.
Mortgage application submissions dropped a composite 1.2% during the week ending 9/9. Refinance application submissions decreased 4% while purchase application submissions slipped by a slight 0.2%.
Continuing jobless claims increased a mere 2,000 during the week ending 9/3 while initial jobless claims fell by 5,000.
Retail sales increased 0.3% month-over-month and 9.1% year-over-year in August.
Review of Last Week
INFLATION STRIKES BACK... Just when we thought the inflation surge was over, the August Consumer Price Index (CPI) went up. Stocks tanked, as traders feared this would spark more aggressive Fed rate hikes and a resulting recession.
The 0.1% CPI gain would have been bigger if gas prices hadn't dipped for the month (though they're still way up for the year), because other prices increased sharply, notably food and shelter, both up 0.8% for the month.
August Retail Sales ticked ahead 0.3%, driven by inflation. Thanks to lower gas prices, University of Michigan Consumer Sentiment stopped dropping, but it's still historically low, with uncertainty over inflation the highest since 1982.
The week ended with the Dow down 4.1%, to 30,822; the S&P 500 down 4.8%, to 3,873; and the Nasdaq down 5.5%, to 11,448.
Also hating inflation, bonds followed stocks south, the 30-year UMBS 5.0% down 0.98, to $99.18. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate rose 13 basis points (0.13%). 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 the best time to buy a house in 2022 will be September 25 through October 1. Traditionally, there are about 8.4% more homes for sale, priced an average of $20,000 less than usual.
HOME BUILDING UP, FED RATE UP, EXISTING HOME SALES DOWN... August Housing Starts are forecast to inch up, but so is the Fed Funds rate. The only question about the FOMC Rate Decision is whether the Fed will go for a full percentage point hike. August Existing Home Sales are expected to come down to a 4.7 million annual rate.
The National Association of Realtors reports active housing market inventory continues to grow, up 27% from a year ago. Versus last year, shoppers have more homes to consider, although inventory still isn’t back to pre-pandemic levels.
A recent study reveals adults with school-aged children will account for nearly one in four home sales over the next 10 months. Families with kids over 18 and empty nesters will also be active, singles and retirees not as much.
Freddie Mac: “Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate," so, "while home price declines will likely continue, they should not be large.”
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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