Houston Weekly Market Update 1/8/2024

Hey Facebook, it's Alex Frank again, bringing you the latest insights into Artemis' realty groups Houston real estate market. In this week's update (for the week of January 15th), we've got some interesting trends and statistics to share.

New Listings Surge: New listings are on the rise, up by 6.5% and approaching the 7,000 mark. This is a positive sign for any week, especially considering the usual slowdown between Christmas and New Year's.

Option Pending on the Rise: Option penni has seen a significant increase of 24%, reaching over 1,700. This growth is notable, considering the slow week between Christmas and New Year's.

Stable Months of Inventory: Months of inventory remain stable at 4%, with a slight gain of 0.9% in active listings. Monitoring this figure is crucial for understanding market dynamics.

Days on Market Ticking Up: Days on Market are showing a slight increase, now at 32. As this figure rises, it could potentially impact the overall months of inventory.

Lockbox Activity: Lockbox activity is up, reaching 33,652, representing an 8.4% increase. With almost 6 showings per listing, this activity level is positive for sellers.

Interest Rates and Mortgage Applications: Interest rates have seen a slight uptick, rising by 11%. However, mortgage applications have increased for two consecutive weeks, indicating continued buyer interest.

Government Funding and Market Reactions: Recent government actions, such as a short-term funding resolution until March or April, may have influenced market reactions. The blog suggests keeping an eye on these developments.

New Construction as a Solution: The blog emphasizes the importance of new construction to address the low inventory situation. Even if interest rates decrease, new construction is seen as a key factor in alleviating housing shortages.

The Silver Tsunami and Homeownership: A notable point is the potential "Silver Tsunami" as a significant percentage of Boomers own their homes outright. This demographic may not be as affected by interest rate changes.

Builder Starts and Permits: December saw a decrease in builder starts year-over-year, but builder permits, indicating future construction, are on the rise. This could signal a positive trend in housing starts and increased inventory.

Affordability Challenges Persist: While there may be some relief in inventory, affordability challenges persist. The market is still tight, favoring sellers, with multiple offer situations observed.

In conclusion, the Houston real estate market continues to show dynamic trends. For more information or if you have any questions, feel free to reach out via call, text, or email. Stay tuned for further updates, and thanks for following along!