Our State of the Real Estate - a monthly market analysis based on our private, internal data continues to be a hit. Please continue to send us your thoughts and feedback!
Now that the First Quarter of the year is behind us, and we are well into April. This report gives us a reliable picture of where the rest of 2023 is headed. Take a look at March's breakdown below.
Our internal numbers in 2022 & 2023 compared:
*Includes adjustment for larger client base
With the first three months under our belt, and an at least temporary reprieve of volatility surrounding banking institutions, we can begin to see how 2023 is going to take shape.
We expect that Houston's real estate market growth will continue to slow down in the coming months, but outstanding traumatic events from outside the Lone Star State like more bank failures or massive rate hikes, our market will still be strong, but balanced.
Our data aligns with others like Bankrate, that states that Houston's housing market has not spiraled as dramatically as other metro areas have, and the city has strong employment numbers.
And while interest rates for 30-year mortgages have seen a 2.83% year-over-year increase according to Freddie Mac, we're starting to see potential buyers accepting that rates aren't likely to improve anytime soon and will be re-entering the market if they have not already.
While the current state of the housing market is closely tied to the broader economic environment, interest rates decided in D.S. and the health of financial institutions, Texas and especially Houston are somewhat insulated from the broader economic narrative. The city's strong employment numbers and lower cost of living compared to the national average are factors that are help stabilize the local market.
This, still competitive market, can be seen as home developers become more aggressive with their offers and incentives. If you aren't experiencing that personally, try pushing back a little more during negotiations and see how much they're willing to bend.
What are your thoughts on the market? What else would you like to know? Shoot us your thoughts. We plan on sending out these unique market analysis reports regularly to help our agents better grasp what's been going on and more importantly what to expect.