Woodforest Real Estate Market Update | August 07, 2023
Today I will be sharing with you our perspective on the local real estate market here in Montgomery, Texas, specifically a market update for the neighborhood of Woodforest. 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 Woodforest?
We currently have 54 homes pending, with 17 homes sold in the last two weeks, averaging a sale price of $197 a square foot. Seventeen 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 22 sold, and the average sales price is down as well. This is most likely a coincidence, so we will be sure to keep an eye on it over the next couple of weeks. 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 the neighborhoods. 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 Woodforest.
Jo's Two Cents
With kids starting school this Wednesday for Klein ISD and the follow two weeks for our neighboring school districts, we will start to see a 2-3 month lull in real estate sales. Which will hopefully take us out of the multiple offer situations we have been seeing on homes in the desirable neighborhoods this summer. The low inventory has really hindered my personal buyers over the last 2-3 weeks. Where we are seeing less completion, are homes over $600k, homes not zoned to A-rated schools, the new construction market, and when it comes to cash purchases.
A group of economists are foreseeing a significant drop in interest rates for the upcoming year. This would clearly be good news for the housing market. Meanwhile, the rental market has remained robust, even amid rental price increases.
I think there are still lots of opportunities if you want a fixer upper or new construction. My favorite opportunities have been in Harper’s Preserve, The Highlands, Grand Central Park, Woodforest, Bridgeland, and Sunterra.
Here is a link to new construction in the Houston suburbs. | Click here
What is happening in the real estate market nationally?
Mortgage rates trended higher throughout the majority of last week, but Friday’s jobs report brought some relief. Construction spending was lower than expected in June. Job openings were also lower than expected while the ADP nonfarm employment change nearly doubled expectations. Mortgage application submissions declined. Jobless claims were as expected. The employment situation largely underperformed in July.
|MORTGAGE RATES CURRENTLY TRENDING
|THIS WEEK'S POTENTIAL VOLATILITY
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Construction spending was slightly below expectations in June with a monthly increase of 0.5% -- likely due to higher costs.
Job openings on the Job Openings and Labor Turnover Survey (JOLTS) for June were at 9,582,000. This was lower than the expected number of openings, which is a good sign that aligns with the Federal Reserve’s goals to help lower rates faster.
Mortgage application submissions saw a composite decrease of 3% during the week ending 7/28. Both the Refinance Index and Purchase Index fell by 3% as well.
The ADP nonfarm employment change for July was 324,000 – nearly double the expected number, which contrasts the job openings’ story of a slowing jobs market and economy.
Continuing jobless claims were right on par with expectations, at 1,700,000 during the week ending 7/22. Initial jobless claims were also as expected at 227,000 during the week ending 7/29.
The employment situation largely underperformed in July. Average hourly earnings were above expectations both month-over-month and year-over-year at 0.4% and 4.4% respectively – but that may be a result of some of August’s wage gains getting pulled into July. The average workweek was slightly shorter at 34.3 hours. Government payrolls were lower than the month before at 15,000. Manufacturing payrolls fell by 2,000. Nonfarm payrolls – arguably the most influential report of the employment situation – was lower than expected at 187,000 vs. the 200,000. Private nonfarm payrolls were also lower than expected at 172,000. The participation rate was at 62.6% and the unemployment was at 3.5%.
Review of Last Week
BAD EARNINGS, GOOD JOBS, DOWN MARKET... Corporate earnings growth has been dropping more than expected, and good July jobs numbers could have the Fed holding rates high for longer, so stocks sank for the week.
New Nonfarm Payrolls fell below 200,000, now two months in a row, yet the labor market stays strong, with unemployment down to 3.5%, and hourly earnings up 4.4%, making the Fed's 2% inflation target harder to reach.
Curbing inflation, July Manufacturing contracted and Unit Labor Costs declined, But the Services sector expanded and Productivity picked up. So, we may get that desired soft landing—an economic slowdown without a recession.
The week ended with the Dow down 1.1%, to 35,066; the S&P 500 down 2.3%, to 4,478; and the Nasdaq down 2.8%, to 13,909.
Overall, bond prices were also down, the 30-Year UMBS 5.5% slipping 0.18, to $98.12. The national average 30-year fixed mortgage rate increased slightly 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… CoreLogic’s chief economist notes that in today’s real estate market, “almost four in 10 sales are all-cash transactions.”
INFLATION, JOBLESS CLAIMS, CONSUMER SENTIMENT… On the inflation front, economists expect small moves for both the Consumer Price Index (CPI) and the Producer Price Index (PPI) of wholesale prices. Initial Jobless Claims are forecast to keep edging up, indicating a weakening labor market that should help quell inflation. Analysts predict University of Michigan Consumer Sentiment will continue recovering in August.
Builder activity in June sent residential Construction Spending up nearly 1% over May. Spending is still down from last year, but builders are now doing more single-family homes, up more than 2% for the month.
The CoreLogic Home Price Index (HPI) showed annual price growth edged up to 1.6% in June. Month-over-month price growth has slowed, yet CoreLogic expects annual price growth to reach about 7% by early 2024.
Inventory is heading back. Zillow found nearly one quarter of homeowners either have their home listed for sale or are considering listing it in the next three years—4 in 10 of them in the next year.
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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