Houston Weekly Market Update 11/13/2023

Hey Houston, it's Alex Frank, and I'm back with your weekly market update from Artemis Realty Group, powered by Place. Whether you're a seasoned follower or a newcomer, buckle up as we delve into the latest happenings in the Houston real estate scene and explore some intriguing trends in the broader economic landscape.

Houston Real Estate Numbers: A Rollercoaster Ride

Let's start with the numbers that drive our real estate conversations. New listings have taken a dip, down by 12%, landing at 6,464. Properties back on the market have decreased, and price decreases are up slightly at 1.7%. However, the exciting news is the surge in option pending properties, which jumped by 1.7% to reach 6,750.

Two weeks ago, we anticipated a rise in showings following a drop in interest rates. This week, that prediction came true with a 4.8% increase in showings, reaching 1,626. As we approach Thanksgiving, the market might experience a lull in new listings, but the inventory is expected to remain stable at 4.2 months.

Median days on the market are holding steady at 25, and the number of active listings has seen a modest increase of 1.4%. Interestingly, the lockbox activity, which correlates with showings, has experienced a notable boost. Last week alone, showings surged by 10.4%, indicating a renewed interest in available properties.

Interest Rates and Mortgage Activity

The real estate rollercoaster continues with interest rates. Two weeks ago, rates stood at 7.92%, dropping to 7.48% the following Monday. Although rates fluctuated throughout the week, they closed at 7.37% on Friday. This shift has already prompted an uptick in mortgage applications and starts, rising by 2.5% and 2.8%, respectively, over the past two weeks.

The mortgage landscape is witnessing intriguing dynamics. Notably, nearly 40% of American households are mortgage-free, with nearly 20% belonging to the retirement age group. This demographic shift could impact inventory, potentially leading to a move of retirees towards urban cores or closer to family.

The Builder Sentiment Conundrum

Amidst all this, the builder sentiment has taken a hit, reaching its lowest point. However, it's crucial to consider the timing of this data. November's numbers were collected in early October, before recent positive economic indicators emerged. As inflation eases, job markets open up, and rates decline, we anticipate a revision in builder sentiment, potentially revealing a more optimistic outlook.

Looking Ahead: Post-Black Friday Insights

As we approach Black Friday, the pulse of the American consumer will become clearer. This crucial shopping period may shed light on economic trends and buyer behaviors, providing valuable insights into the real estate landscape.

In conclusion, the Houston real estate market is in a state of flux, influenced by interest rate fluctuations, consumer sentiment, and broader economic indicators. Stay tuned for more updates as we navigate through this dynamic landscape. If you have any questions or comments, feel free to reach out—we're here to help you make sense of the twists and turns in the Houston real estate journey. Until next time, take care and happy house hunting!