Houston Weekly Market Update 12/18/2023-1/7/2024

Hey Houston, it's Alex Frank with Artemis Realty Group, and I'm back with our weekly market update for the Houston real estate scene. We took a brief hiatus over the Christmas season, but we're back to keep you informed on the latest trends shaping our local market. So, let's dive into the numbers and see what's been happening over the past couple of weeks.

Holiday Slowdown and Market Dynamics: We decided to take the last two weeks off due to the Christmas season, acknowledging the traditionally slower market during this time. It's essential to consider the various factors that can skew the numbers, such as fewer new listings and option pendings. For instance, between Christmas and New Year, there was a noticeable 20-25% reduction in new listings. Despite this, we observed an intriguing shift in the months of inventory, dropping from 4.2 to 3.9 months.

Showings and Open House Success: Surprisingly, showings actually increased between Christmas and New Year, showcasing an active market. We started December with 27,000 showings and ended with 24,000, indicating a resilient real estate landscape. An open house on the 30th drew in eight groups, a promising sign of continued interest and engagement.

Mortgage Applications and Interest Rates: Tracking mortgage applications provides valuable insights into buyer activity. While the number of people initiating mortgage applications increased between Christmas and New Year, the latest week saw a 10% decline. This suggests some fluctuations in buyer interest, possibly influenced by external factors.

Job Report and Economic Indicators: The recent job report has raised some concerns, with indications that it might not be as robust as anticipated. This prompts us to keep a close eye on economic indicators, especially with the Consumer Price Index (CPI) and other significant numbers set to be released next week. The strength of the American consumer will play a crucial role in shaping the market's trajectory.

Speculation on Interest Rates and Market Volatility: Listening to podcasts and staying informed about economic shifts is vital in our business. The expected interest rate lowering, initially thought to occur in March, may face delays. If there are any signs of weakness in the American consumer, it could potentially impact the stock market, leading to discussions about accelerating interest rate reductions.

Closing Thoughts: As we navigate the ever-evolving real estate landscape, it's crucial to stay informed and adapt to market dynamics. If you have any questions or comments, feel free to reach out to us using the contact information provided below. We're here to help you make informed decisions in this dynamic market.

Thanks for tuning in, and we look forward to updating you soon on the latest in the Houston real estate scene!