Houston Weekly Market Update 11/6/2023

Hey Houston, it's Alex Frank again with your Houston market update. I hope you all had a great week. Let's dive into the numbers and see what's been happening in our real estate scene.

So, not a lot happened this week, but we've got some interesting trends to discuss. Last week, we made some predictions that didn't quite pan out, and we'll get into that in a bit. First off, we had 65 new listings, which is a 4% increase. We've been hovering around this number for a while, and it seems like the seasonality in the market hasn't shown up significantly, except for a slight dip in option pendings, down about 5% to 500.

Our months of inventory stand at 4.2, adding about a tenth of a month each month. For context, a balanced market is around 6 months, so we're still on the lower side. Back in the summer, we were at 3.7, and now we've edged up to 4.2. It'll be interesting to see how this plays out in the coming weeks.

Days on market are at 25, holding steady. The number of active listings increased by about 4% to 55,594. Now, here's an interesting point: the average price dropped. Don't panic; it's not because prices are falling. In fact, they're going up due to low inventory. It's more a reflection of who's listing on the market.

Lockbox activity, where I made a wrong prediction, is down again. Despite a drop in interest rates from 7.8 to 7.3 last week, lockbox activity decreased by 8.4%, the largest drop since July 10th. Mortgage applications did increase by 2.5%, so perhaps we'll see that reflected in the market soon.

On a positive note, even with fewer showings, properties are still going under contract quickly. I recently hosted an open house, and we already have a contract, with 11 people showing up. On the flip side, my buyer lost out on a property last week because it went so fast. It's a testament to the competitive nature of the market.

Interest rates went up slightly, about a tenth of a point from last week's lows, but it seems like they might be stabilizing. The Fed isn't showing signs of raising rates, which bodes well for the market.

I came across an interesting article discussing how people with low-interest rates aren't necessarily deterred from moving, even with the potential of higher rates. It'll be intriguing to see if these individuals do follow through on listing their homes at higher rates.

In summary, the fundamentals of housing creation and dissolution are still in play, and houses are hitting the market. As we enter the winter months, traditionally slower in real estate, we'll keep a close eye on how these trends develop. If you have any questions or comments, feel free to reach out to me. Looking forward to keeping you updated. Talk to you soon!