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 77065 Zip Code. Whether you are looking to buy, sell, or just keep an eye on the market, we look forward to being your resource.
See this blog post in its original form at: https://byjoandco.com/2022/10/10/77065-real-estate-market-update-october-10-2022/
We currently have 5 homes pending, with only 1 home sold in the last two weeks, averaging a sale price of $160 a square foot. One home sold over the asking price, with one home selling 3% above the listing price.
Compared to the two weeks prior: The number of homes sold is still the same, but the average sales price is up $411,000 ($400,000 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.
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 77065.
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.
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.
Mortgage rates trended higher last week after the release of strong economic jobs data. Construction spending dipped in August. Job openings on the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) took a dip, but ADP nonfarm employment and the other jobs reports came in higher than expected. Mortgage application submissions fell while jobless claims rose.
MORTGAGE RATES CURRENTLY TRENDING | THIS WEEK'S POTENTIAL VOLATILITY |
Notable News
Market Recap
WHIPSAW WEEK... Stocks began the week rallying on the belief the Fed would soon go easy on rate hikes but ended with a big sell-off after a decent September jobs report indicated the Fed will have to stay aggressive.
The problem was, an unexpectedly low 3.5% unemployment rate indicated labor market strength that would keep the Fed boosting rates to cool down the economy and inflation. Stocks still booked nice weekly gains.
Earlier in the week, there was evidence of economic cooling with weaker-than-expected ISM Manufacturing and Construction Spending. But the ISM Services Index showed that huge sector of the economy solidly expanding.
The week ended with the Dow UP 2.0%, to 29,297; the S&P 500 UP 1.5%, to 3,640; and the Nasdaq UP 0.7%, to 10,652.
Bond prices went in the other direction, the 30-year UMBS 5.5% down 0.04, to $99.08. The national average 30-year fixed mortgage rate fell three basis points (0.03%) 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… Realtor.com reports that for the week ending September 24, active inventory kept growing and is now 29% higher than a year ago, though we’re still not back to pre-pandemic levels.
INFLATION, RETAIL SALES UP, CONSUMER SENTIMENT DOWN... Inflation should keep rising according to September's Consumer Price Index (CPI) and Producer Price Index (PPI) of wholesale prices. Retail Sales should be up a tick, but flat when you take out vehicle sales. University of Michigan Consumer Sentiment is expected to come in historically low (same old story).
The stock markets will be open today, but the bond market will be closed in observance of Columbus Day.
Residential Construction Spending slipped a tick (less than 1%) in August. But home builder spending is still 12.5% higher than a year ago, so, more new homes will keep coming onto the market.
ShowingTime reports the decline in home showing traffic is leveling off, as buyers get back into the market. What’s drawing them is less competition and more listings, so they have more options and more time to decide.
Black Knight’s home price index found home prices fell 0.98% in August after a 1.05% drop in July, the largest monthly price decline since 2009. The median home price is now down 2% below its June peak.
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: jordan@byjoandco.com & edward@byjoandco.com 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.
If you are looking to relocate to the Houston Area, we would love to meet you, and hear your story. Below you will find all of my contact information, as well as some homes for sale in the area. We truly look forward to hearing from you! P.S. Don't forget to check out our YouTube Channel!
Now if you are feeling overwhelmed on where you should plant your roots, I would love to talk to you. You can schedule a call with me by click this link: https://byjoandco.com/call or just send us an email: jordan@byjoandco.com. There are some amazing communities all over the Houston suburbs. In this post, https://search.byjoandco.com/blog/best-neighborhoods-in-houston/, I deep dive into all the different suburbs/neighborhoods that you might want to consider, and why. There are many resources here, so please reach out if you are curious what to look at next! Thank you for trusting us.
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