Houston Weekly Market Update 11/20-11/27/2023

Hey Houston, it's Alex Frank again with Emis Realty Groups, bringing you our weekly market update. We appreciate your patience as we missed last week's update due to the Thanksgiving holiday, so today, we'll be condensing the highlights from the past two weeks.

New Listings and Market Trends

Over the last two weeks, we've seen a mixed bag of numbers in the Houston real estate market. New listings took a hit, experiencing a decline of 5.4% and a significant drop of 32.1%. Starting at 64, we now find ourselves at 4151 active listings. While Thanksgiving likely played a role in this decrease, it's essential to keep an eye on these figures as we move forward.

Back on the market statistics remained relatively stable, showcasing the resilience of the market even during holiday weeks. Price decreases mirrored new listings, staying consistent, and option pendings saw a decline of 25%, likely influenced by the holiday slowdown.

Market Indicators

Despite the fluctuations in new listings and option pendings, some market indicators remained steady. Months of inventory held at 4.2, reflecting a balanced market. The average days on market remained at 26, indicating a reasonably swift turnover.

Surprisingly, the average price witnessed a 4.1% increase, bouncing back after two months of declines. This could suggest resilience in the market despite the holiday season.

Lockbox Activity

Tracking lockbox activity has been crucial in understanding market dynamics. While we've observed a consistent decline in showings since mid-June, the past two weeks have seen a notable increase of 10.4% and a subsequent decrease of 25%. The impact of Thanksgiving is evident here, and it will be interesting to see how this trend evolves in the coming weeks.

Mortgage Rates and Economic Outlook

Shifting our focus to macroeconomics, mortgage rates have experienced a drop over the past few weeks. The 30-year fixed interest rates went from 7.91% in mid-October to 7.13% recently. FHA rates also saw a decline from 7.33% to 6.64%. This reduction has coincided with four consecutive weeks of increased mortgage applications, indicating potential renewed interest in the market.

Federal Reserve Chair Jerome Powell's recent statements suggest that while we're not yet in the desired economic state, progress is being made. The market has factored in no more rate hikes, with potential decreases by May. This could impact buyer behavior and contribute to market activity in the coming months.

Looking Ahead

As we approach the next Federal Reserve meeting, it will be crucial to monitor any shifts in their stance and how the market reacts. The recent trend of increased showings and open house attendance indicates a potential resurgence in buyer interest.

For both buyers and sellers, the current market conditions present opportunities. Buyers may find favorable pricing now before potential rate drops, while sellers could benefit from an active market during what is traditionally a slower period.

If you have any questions or comments, feel free to reach out to us at [insert contact details]. We'll continue to keep you updated on Houston's real estate landscape. Until next time, take care!