December Blog Post
Yes, homes are staying on the market longer, up 15% from last year during the four weeks ended Dec. 4, marking the largest uptick in home supply since 2015.
So why is this good for you?
A new Redfin report found home supply isn’t the only market indicator on the rise, its Homebuyer Demand Index, which measures requests for tours and other services, is also growing and is up 5% from last week, as declining mortgage rates are bringing more buyers back into the market.
The final Federal Reserve meeting of 2022 is the 500-pound gorilla in the room, and the Fed’s press conference the next day will bring us more clarity on how soon and we can expect mortgage rates to come down in the new year. After four consecutive 75 basis point interest rate hikes, the Fed is expected to increase rates by 50 basis points officially pumping the breaks on mortgage rate increases.
Rates will dictate housing affordability, and as a result, demand and sales, in 2023. If rates continue declining, more buyers may wade back into the market, as they’ll have lower monthly payments.”
Thirty-year mortgage rates fell to 6.33% for the week ending Dec. 8, marking the fourth week in a row of decreases. The daily average, according to the report, was 6.29% on Dec. 7.
The lower rate brought the average monthly mortgage payment on a median-priced home to $2,297, down slightly from the previous week and down more than $200 from a month earlier.
Home sales activity and prices are both expected to grow in the Houston area next year, according to Realtor.com’s 2023 housing forecast.
The housing adjustment period could last into 2025, Realtor.com said, but the change ahead will not resemble the recession of 2008, which took years of recovery. The rate of homeownership is expected to hold in 2023, the report said.
The Houston Association of Realtors First Real Estate Snapshot of Houston shows that while new listings are down year over year, active listings have increased by nearly 70% year to date. This increase in inventory is a vast improvement over the historically low inventory levels seen in 2021. Home buyers looking for a new home this inventory boost represents a positive shift towards equilibrium from the seller’s market over the last 2 years.
The average listing price (ALP) in Houston has risen 6.7% to $416,561. The ALP reached an all-time high of $441,303 in May of this year, meaning housing costs have moderated significantly in the months since.
Houston landed at number 42 on the list of the world's best cities to live, work, and invest. Our city claimed the 11th spot among U.S. cities and was #1 in Texas.
Houston ranked particularly high in the "Google Trends" and "GDP (gross domestic product) per Capita" categories. The fifth-largest city in the U.S. has stirred global curiosity with a top 10 GDP per Capita finish and was among the top five Googled cities over the past year.
Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate.
Homeownership is still worth the investment provided your finances are in order, your job is secure, you will remain in place for at least a few years, and that you can afford the monthly payments.
Naturally we love the peace of mind that comes with a new construction home to help dramatically keep your maintenance costs down over the next 10 years compared to older homes, but we will get more into those benefits next month.
Happy Holidays Everyone!
Yes, homes are staying on the market longer, up 15% from last year during the four weeks ended Dec. 4, marking the largest uptick in home supply since 2015.
So why is this good for you?
A new Redfin report found home supply isn’t the only market indicator on the rise, its Homebuyer Demand Index, which measures requests for tours and other services, is also growing and is up 5% from last week, as declining mortgage rates are bringing more buyers back into the market.
The final Federal Reserve meeting of 2022 is the 500-pound gorilla in the room, and the Fed’s press conference the next day will bring us more clarity on how soon and we can expect mortgage rates to come down in the new year. After four consecutive 75 basis point interest rate hikes, the Fed is expected to increase rates by 50 basis points officially pumping the breaks on mortgage rate increases.
Rates will dictate housing affordability, and as a result, demand and sales, in 2023. If rates continue declining, more buyers may wade back into the market, as they’ll have lower monthly payments.”
Thirty-year mortgage rates fell to 6.33% for the week ending Dec. 8, marking the fourth week in a row of decreases. The daily average, according to the report, was 6.29% on Dec. 7.
The lower rate brought the average monthly mortgage payment on a median-priced home to $2,297, down slightly from the previous week and down more than $200 from a month earlier.
Home sales activity and prices are both expected to grow in the Houston area next year, according to Realtor.com’s 2023 housing forecast.
The housing adjustment period could last into 2025, Realtor.com said, but the change ahead will not resemble the recession of 2008, which took years of recovery. The rate of homeownership is expected to hold in 2023, the report said.
The Houston Association of Realtors First Real Estate Snapshot of Houston shows that while new listings are down year over year, active listings have increased by nearly 70% year to date. This increase in inventory is a vast improvement over the historically low inventory levels seen in 2021. Home buyers looking for a new home this inventory boost represents a positive shift towards equilibrium from the seller’s market over the last 2 years.
The average listing price (ALP) in Houston has risen 6.7% to $416,561. The ALP reached an all-time high of $441,303 in May of this year, meaning housing costs have moderated significantly in the months since.
Houston landed at number 42 on the list of the world's best cities to live, work, and invest. Our city claimed the 11th spot among U.S. cities and was #1 in Texas.
Houston ranked particularly high in the "Google Trends" and "GDP (gross domestic product) per Capita" categories. The fifth-largest city in the U.S. has stirred global curiosity with a top 10 GDP per Capita finish and was among the top five Googled cities over the past year.
Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate.
Homeownership is still worth the investment provided your finances are in order, your job is secure, you will remain in place for at least a few years, and that you can afford the monthly payments.
Naturally we love the peace of mind that comes with a new construction home to help dramatically keep your maintenance costs down over the next 10 years compared to older homes, but we will get more into those benefits next month.
Happy Holidays Everyone!