Houston Weekly Market Update 10/16/2023

Hey there, Houston! It's Alex Frank, back with your weekly market update. For those of you who are new to our little chat, we'll be diving into the latest happenings in the Houston real estate market, taking a closer look at the numbers, and discussing what's shaking in our local economy. So, let's get down to it!

Now, let's start with the data, brought to you by the Houston Association of Realtors. We've got some intriguing figures this week, so hang on tight.

New Listings: The numbers show a 1% increase, with 6,600 new listings. Houston's real estate scene is always buzzing.

Option Pendings: Unfortunately, this one's down by 7% at 1,731. While it might not be ideal, it's a number that can fluctuate due to various market factors.

Months of Inventory: This is a big one. It tells us how long it would take to sell all the houses currently on the market. Less than 6 months means it's a seller's market, and above 6 months indicates a buyer's market. Three weeks ago, we were at 3.9 months, but last week, it jumped to 4, and now we're at 4.1. We might not hit the balanced market at 6 months, but it looks like we're hovering in the high fours to mid-fours. It's still a competitive market.

Median Days on Market: Three weeks ago, it was 21 days, then it jumped to 25, and now it's back to 24. This indicates that houses are selling relatively quickly, especially if priced right. Sellers are getting more realistic about the current market, which is a win-win for both buyers and sellers.

Average Price: The average price dropped slightly, by half a percent, to $420,480. It's important to keep an eye on these fluctuations, but it's not a major cause for concern.

Lockbox Activity: This dropped by 7%, signaling a consistent decline. If you're getting showings on your house, it's likely priced well. If not, you might want to consider a price adjustment.

Mortgage Applications: They saw a 6.9% drop due to rate volatility. Rates hit 8% for the first time in ages, and the Federal Reserve seems to be keeping their options open for future rate hikes. Keep an eye on this, as it can affect your home buying process.

Now, let's talk about something interesting. There's a division among the Federal Reserve chairs regarding rate hikes. With a rate meeting on the horizon, it's unclear if we'll see another rate hike. The treasury bill rates are high, but Jerome Powell's recent speech indicated a possible rate hike. Things are a bit unpredictable, so stay tuned.

On a lighter note, recession fears seem to be dwindling. History shows that whenever a Philadelphia Phillies baseball team wins the World Series, a recession follows. So, if you're against the idea of a recession, root against the Phillies! Let's hope our Houston Astros can hold them off once again.

In conclusion, Houston, keep a close watch on these market updates. If you have any questions or need real estate advice, you know where to find me. Stay tuned for more updates, and let's hope our Astros keep that recession at bay. Thanks for tuning in!