THE DATA
Our internal numbers in 2022 & 2023 compared:
- Active Yard Sign Installations: Mar. 2022 - 854 | Mar. 2023 - 783
- Down 9.1% from 2022* - New Yard Sign Installations: Mar. 2022 - 555 | Mar. 2023 - 562
- Up 1.3% from 2022* - Length of Active Yard Signs: Mar. 2022 - 31 Days | Mar. 2023 - 40 Days
- Up 9 Days from 2022 - Yard Sign Removals: Mar. 2022 - 407 | Mar. 2023 - 482
- Up 18.4% from 2022* - Additional Services: Feb 2022 - 249 | Feb 2023 - 288
- Up 15.7% from 2022*
*Includes adjustment for larger client base
WHAT IT MEANS
- New listings are up from this time last year, though the marginal 1.3% isn't much to hold on to.
- Consistent in the first two months of 2023, homes aren't selling as fast as 2022, but dropped by 3 days from February's 43 day average. While this dip from last month isn't significant, we can start to see a trend when looking at all three months.
- WINNING STREAK! For the third month in a row SignBoss agents outperformed Houston's industry Average of NEW LISTINGS. HAR reporting an 18% DIP in March for overall home sales, while our agents collectively added 75 more closings than the year prior.
- For the second month in a row we saw a notable increase in additional services from the year prior. While this suggests higher buyer interest, overall it isn't a good thing, as we expect significantly more sign swaps, open houses & rider changes, the longer homes stay on the market.
- Not As Bad As Expected. Last month we suggested March numbers would be rough "Unless the beginning of the month saw an excessive amount of home sales". Well that's exactly what happened, with those 75 additional closings helping to shave 3 days off of the active listing time.
GENERAL ANALYSIS
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.
DON'T MESS WITH TEXAS
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.
YOUR THOUGHTS?
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.