Houston Weekly Market Update 12/11/2023

Hey Houston, it's Alex Frank with your weekly market update from Artemis Realty Group. As we wind down the week, there's a buzz in the air, and if you haven't heard yet, interest rates have taken a dip. The FED has decided to hold, anticipating three interest rate drops, potentially kicking off in March. However, the market's response has been a bit aggressive, leading to speculations that we might see some pullback. Time will be the ultimate judge, but let's dive into the numbers.

Market Overview:

• New Listings: We're seeing a 1.8% uptick with 6,647 new listings, setting a positive tone for the week.

• Option Pendings: After a minor correction post-Thanksgiving, we're back on the rise, up by 12.1% at 6,1623. Stability is the name of the game.

• Months of Inventory: Currently at 4.2, indicating a balanced market. However, keep an eye on the evolving landscape.

• Median Days on Market: A slight anomaly this week with a jump to 29 days from the usual 24-26. Could this be an early indicator of properties lingering longer? Time will tell.

• Active Listings: Up by 2%, totaling 56,366. The market is buzzing with activity.

• Average Price: Interestingly, the average price has dropped to $408, the lowest this year. It's essential to note that this doesn't necessarily indicate a decline in Houston home values; it reflects what's hitting the market.

Market Dynamics and Trends:

• Lock Box Activity: Up by 2% at 27,429, holding steady from pre-Thanksgiving levels. A positive sign in the current seasonal context.

• Interest Rates: Starting at 7.1%, they closed at 6.64%. A favorable shift that aligns with the FED's decision.

Strategic Considerations:

This time of year typically sees a slowdown, but with the interest rate drop, savvy buyers might find opportunities. Sellers contemplating a spring listing should weigh the potential increased competition against current favorable rates.

Mortgage Applications:

With a 7.4% increase this week, marking the fifth-largest move all year. More buyers are entering the scene, and the upcoming weeks, especially post-FED decision, could be telling.

Looking Ahead:

Next week, amidst the holiday season, keep an eye on mortgage application numbers. It's an unusual time for such movements, but it might just set the tone for an unexpectedly active Christmas in the real estate market.

In conclusion, as we navigate these shifts, whether you're a buyer, seller, or just curious about the market dynamics, feel free to reach out with your questions or comments. You can contact me at the number or email below. Until next time, stay informed, Houston!

Bye for now.