Terranova West Real Estate Market Update | July 11, 2022
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 Terranova West. 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 Terranova West?
We currently have 3 homes pending, with 4 homes sold in the last two weeks, averaging a sale price of $135 a square foot. Four homes sold over asking price, with one home selling 5% above the listing price. Compared to the two weeks prior: Homes sold are up from 2 to 4, with the average sales price per Square feet is also up: $135 ($118 previously). However, 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 current market value for your home. 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 Terranova West, 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 6 days, with most homes selling during the first 4-5 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 Terranova West.
What is happening in the real estate market nationally?
Mortgage rates trended upward last week... Mortgage application submissions saw a composite decrease. The Labor Department reported a decrease in job openings according to its Job Openings and Labor Turnover Survey (JOLTS) for May. Both continuing and initial jobless claims increased slightly. The employment situation was mostly better than expected.
|MORTGAGE RATES CURRENTLY TRENDING||THIS WEEK'S POTENTIAL VOLATILITY|
- Inventory has soared amidst higher rates, giving buyers more options. Read Now >>
- Home buying is 5% cheaper than a week ago. Read Now >>
- Rent prices hit 13th consecutive month of record highs. Read Now >>
- Mortgage application submissions fell 5.4% on a seasonally adjusted basis during the week ending 7/1. On an unadjusted basis, the Composite Index for application submissions increased 6%. The Refinance Index decreased 8% while the seasonally adjusted Purchase Index decreased 4%.
- In May, job openings fell 6.9% to 11.3 million. Hires and total separations were unchanged. The data also showed that there are two job openings for every one unemployed person – a good sign that the labor market is still strong.
- Continuing jobless claims increased slightly to 1.38 million during the week ending 6/25. Initial jobless claims rose as well, climbing to a level of 235,000 during the week ending 7/2.
- Average hourly earnings saw a slightly lower increase in June than in May, rising 0.3% month-over-month. The average workweek was unchanged at 34.5 hours. Government payrolls decreased by 9,000 jobs in June. Manufacturing companies, on the other hand, added 29,000 to their payrolls. Nonfarm payrolls were slightly lower than in June than May with 372,000 additions but it was higher than economists’ expectations. The participation rate was relatively unchanged at 62.2%. Private payrolls increased by 381,000. The unemployment rate was unchanged at 3.6%.
Review of Last Week
JOBS TAME RECESSION FEARS... The three major stock indexes, led by the tech-heavy Nasdaq, gained for the week, as investors’ recession fears were quelled by a stronger-than-expected June jobs report.
Those fears came from Fed meeting minutes acknowledging that tighter policy could cause a recession, but noting that inflation could become entrenched if people start questioning the Fed's resolve to fight it with big rate hikes.
Yet June saw 372,000 new payrolls, 3.6% unemployment, and hourly earnings up 5.1% from a year ago, though trailing 8.7% annual inflation. Plus, the ISM Non-Manufacturing index showed the services sector still growing.
The week ended with the Dow UP 0.8%, to 31,339; the S&P 500 UP 1.9%, to 3,889; and the Nasdaq UP 4.6%, to 11,635.
As money flowed to equities, bond prices fell, the 30-year UMBS 4.5% down 0.94, to $99.31. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate dropped 40 basis points (0.4%). Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Data firm CoreLogic predicts by next May annual home price appreciation will drop to 5%, hitting the normal 3%-5% yearly growth rate.
ere were negatives, led by the University of Michigan Consumer Sentiment Index sinking from 85.5 a year ago to 50.0, its lowest read ever, and continuing jobless claims inching up for the week.
But New Home Sales posted that strong upside surprise, and Wall Street felt the recent signs of slowing economic growth would lead to less aggressive Fed rate hikes, giving us a better chance of avoiding a recession.
The week ended with the Dow UP 5.4%, to 31,501; the S&P 500 UP 6.4%, to 3,912; and the Nasdaq UP 7.5%, to 11,608.
Bonds overall saw modest gains, the 30-year UMBS 4.5% UP 0.20, to $99.29. Freddie Mac's Primary Mortgage Market Survey reported the national average 30-year fixed mortgage rate up just three basis points (0.03%). Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Realtor.com forecasts that a moderating housing market will give buyers more options. The number of homes for sale is growing more than originally projected, driven by more sellers and a slowing sales pace.
INFLATION UP, RETAIL SALES UP, CONSUMER SENTIMENT DOWN... It's a good news-bad news week. Consumer Price Index (CPI) inflation is forecast to keep rising for June, but Retail Sales are expected up, indicating consumers are still powering the economy. But consumers should also give us some bad news: University of Michigan Consumer Sentiment is predicted to hit a new all-time low.
Spending on residential construction rose 0.2% in May and is now 19.0% ahead of a year ago. Builders are working hard to add inventory to meet buyer demand despite ongoing labor and supply chain issues.
Black Knight reports May home-price growth saw its largest monthly slowdown in 16 years, falling by more than a full percentage point. That was the second straight month of slowing price growth, but prices still rose 1.5% from April.
Realtor.com reports that in the week ending July 2, for-sale inventory continued to gain. New listings were up 8% versus a year ago, pushing total active inventory 29% higher than a year ago.
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..
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