Houston Weekly Market Update

Hey there, it's Alex Frank from Artemis Realty Group, and I'm coming to you with our latest weekly market update. Apologies for the late update this Sunday night; I've been at a real estate conference in Phoenix, and my throat's a bit sore from all the talking, but I've got some valuable insights to share from our meetings with our partners at Goldman Sachs. So, let's dive right into it.

Market Snapshot:

First, let's take a look at the numbers from the past week. While some indicators were down, it's essential to understand the bigger picture.

• New Listings: We saw a 7.9% decrease in new listings this week.

• Back on Markets: This category experienced a 22.2% drop, but it's not a major concern.

• Price Decreases: Prices saw a decrease, and option pendings were down by 8.1%.

• Pending Sold: The number of pending sold properties dropped by 32.5%.

• Withdrawns, Expires, Terminates: All these categories showed declines, indicating fewer properties going off the market.

• Months of Inventory: We've maintained a steady 3.8 months of inventory for the past month, keeping us in a strong seller's market.

• Median Days on Market: This statistic is currently at 21 days, showcasing the pace of the market.

• Number of Actives: The number of active listings has risen slightly to 51,499.

• Lock Box Activity: Lock box activity has decreased over the past two months, which could be influenced by high-interest rates.

Interest Rates and the Housing Market:

Now, let's talk about interest rates, a significant concern for many buyers. Interest rates are indeed high right now, and that's a fact. However, it's essential to put this into context.

Our partners at Goldman Sachs predict that we might see one more rate hike before the rate-hiking cycle concludes. Historically, when rate-hiking cycles end, we tend to see an increase in home prices. In fact, in four out of the past six rate-hiking cycles, we've witnessed an increase in home prices.

Even if interest rates remain relatively high, we believe that home prices will continue to rise due to low inventory and ongoing demand.

Mortgage Applications and Future Predictions:

Mortgage applications have declined by 2.9%, but experts suggest that rates could reach as high as 8% in the near future. However, our partners at Goldman Sachs anticipate that by mid-2024, rates will drop back to around 6%.

It's important to note that there's currently a 4% gap between mortgage rates and the rates in the market, indicating room for potential shifts.

Consumer Price Index and Inflation:

The recent Consumer Price Index (CPI) data showed an uptick in inflation, which has raised concerns. However, wage growth has managed to keep up with inflation, helping to keep the consumer strong.

Built for This Market:

In uncertain times like these, it's crucial to have a real estate agent who understands the market inside out. Our motto is "Built for This," and we mean it. You need an agent who can navigate this dynamic market and guide you effectively.

While some agents may have entered the industry during the booming market of 2021 and found quick success, the current market requires a different set of skills. It's a unique challenge that demands expertise and adaptability.

Conclusion:

If you're feeling uncertain or worried about the current market conditions, it's entirely understandable. But remember, we're here to help you navigate these waters successfully. The Houston real estate market is ever-changing, and having the right guidance can make all the difference.

Don't hesitate to reach out if you have questions, concerns, or need assistance. We look forward to connecting with you and providing the insights you need to make informed decisions.

Thanks for tuning in, and stay tuned for more updates.