Houston Weekly Market Update 2/12/24

Introduction:

Hey Houston, it's Alex Frank from Artemis Realty Group, bringing you your weekly market update. Today, we'll dive into some key statistics shaping the Houston real estate landscape, discuss recent macroeconomic developments, and explore forecasts for home prices in the coming months.

Market Statistics:

1. New Listings: New listings were down about 2%, totaling 6,600. While a slight decrease, this figure remains robust for the market.

2. Option Pendings: A notable trend is the consistent increase in option pendings. With 247 pending options, representing a 1.6% uptick, the market remains active and promising.

3. Solds: Despite a decrease in solds, it's crucial to remember that solds are a lagging indicator. The market has maintained a stable four months of inventory throughout the year.

4. Market Type: Houston continues to be in a seller's market, with four months of inventory. Although not as deep as 2021, the market favors sellers.

5. Days on Market: The median days on market stand at 34 days, indicating a brisk pace in property transactions.

6. Price Movements: The average price has seen a significant jump from $403,000 at the beginning of the year to $411,000. This upward trajectory suggests the resilience of the market.

7. Lockbox Activity: Lockbox activity increased to 3,643, indicating heightened interest and engagement.

Macro Insights:

Recent macroeconomic developments include discussions around potential rate cuts by the Federal Reserve. Despite initial optimism for a March rate cut, strong job reports and sticky inflation have led to a reconsideration. The possibility of a rate cut may now extend to July, with the Fed closely monitoring various economic indicators.

Home Price Forecasts:

Looking at forecasts from major institutions:

• Goldman Sachs: Initially predicted 1.9% appreciation, revised to 5%.
• Mortgage Bankers Association: Started at 1.1% and revised to 4.1%.
• Zillow: Predicted 2.2% and adjusted to 3.5%.
• Fannie Mae: Forecast ranges from 2.8% to 3.2%.
• Freddie Mac: Expects 2.6% to 2.8% appreciation.
• Home Price Expectation Survey: Consumer expectations range from 2.2% to 2.4%.
• National Association of Realtors: Initial forecast at 1.9%.

Conclusion:

As we navigate through the intricacies of the Houston real estate market, it's evident that despite some fluctuations, the market remains robust. With varying forecasts for home prices, the coming months are anticipated to bring increased activity, especially if rates drop. Stay tuned for further updates, and if you have any questions or comments, feel free to reach out. Until next time, Houston!