Houston Weekly Market Update 10/2/2023

Hey there, Houston! It's Alex Frank, and I'm back with another edition of Artemis Realty Group's Weekly Market Update. For those of you who are new to our updates, we've been keeping a close eye on the Houston real estate market, tracking key metrics since March 2020. Why, you ask? Because these numbers tell a story that often goes untold elsewhere. You see, data removes the drama, and that's why we're all about the numbers.

Let's dive right into the latest stats:

New Listings: Last week, there were 6,534 new listings added to the Houston market, which is a 1.5% decrease from the previous week.

Option Pendings: In the preceding week, we witnessed a significant drop of 24.8% in option pendings. But this week, we bounced back with an increase of 29.6%, bringing the total to 1,800. I think I just put the numbers in wrong because there was nothing to dictate this variability.

Months of Inventory: We've maintained a steady 3.9 months of inventory for three consecutive weeks, indicating a balanced market.

Median Days on Market: The median days on the market dipped to 21, down from 22 in the past two weeks, showing that houses are still selling relatively quickly.

Number of Actives: There was a slight decrease of 0.1% in the number of active listings, with a count of 52,690. Over the past 13 weeks, we've experienced three weeks with negative changes in active listings.

It's essential to understand that this market is brimming with opportunities. Remember, just a year and a half ago, people were competing for homes at 4% or even 3% interest rates. Now, you can lock in a rate at 7.6%, without the intense competition. Plus, when rates drop, you can refinance and capitalize on the equity you've built. This is the market of opportunity.

While the average price has remained relatively flat, there's an intriguing trend in the number of showings. At the beginning of the year, we had 34,194 showings, and this figure has gradually decreased, hitting 30,000 recently. The market is entering the slower months, but it's still active.

Now, what's on everyone's radar is the jobs report. The data suggests that the job market is slowing down, which is a necessary development. The Federal Reserve has signaled its intent to tighten monetary policy if needed, including the possibility of rate hikes. Whether or not that happens remains uncertain, but the Fed is closely watching.

Recently, I read an article in Inman featuring the Chief Economist of the National Association of Realtors, Lawrence Yun. He believes that the leading indicators of the job market are slowing, and the Fed might be overreacting with rate hikes. While opinions differ, I personally lean toward no additional rate hikes this year.

Ultimately, the market is unpredictable, and we're meeting with experts to gain more insights. We'll be sharing that data in our next update.

If you have any questions, concerns, or are interested in exploring the current housing opportunities in Houston, don't hesitate to reach out. We'd love to connect you with our team and show you some fantastic homes.

Until next time, stay tuned for more updates on the Houston real estate market!