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THE DATA
Our internal numbers in 2022 & 2023 compared:
- Active Yard Sign Installations: Feb. 2022 - 891 | Feb. 2023 - 1034
- Up 10.8% from 2022* - New Yard Sign Installations: Feb. 2022 - 347 | Feb. 2023 - 370
- Up 4.2% from 2022* - Length of Active Yard Signs: Feb: 2022 - 34 Days | Feb: 2023 - 45 Days
- Up 11 Days from 2022* - Yard Sign Removals: Feb. 2022 - 354 | Feb. 2023 - 152
- Down 57.1%from 2022* - Additional Services: Feb 2022 - 185 | Feb 2023 - 224
- Up 14.4% from 2022*
*Includes adjustment for larger client base
WHAT IT MEANS
- Like January, homes aren't selling as fast as 2022 and still beat pre-COVID averages, but increased by 4 days from the month prior.
- SignBoss agents outperformed Houston's industry Average of NEW LISTINGS in February with HAR has reporting a 14.1% decline in overall available properties, while our agents collectively added 23 more than the year prior. Yet isn't significant enough to denote a larger trend.
- Unlike January, in February 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.
- March numbers are likely to be dismal. Unless the beginning of the month saw an excessive amount of home sales, the 57.1% drop in yard sign removals will come back to haunt us, likely skyrocketing the length of active listings. Stay tuned.
GENERAL ANALYSIS
February was not ideal, but remained healthy when compared to what we considered average just a few years ago. Yet there are some elements from our data, and the broader market that will likely course-correct that phenomena in the coming months.
In recent years, the housing market has been ever more closely tied to the broader economy, particularly with respect to the health of banks and financial institutions. This relationship has become particularly important as we have seen a number of high-profile bank collapses in March, which have already had an impact on the housing market.
These collapses will have a significant impact on the housing market, even if short-term, as they have led to a tightening of credit conditions and a decrease in the availability of mortgage financing. What has compounded this is there was no anticipated upside of the FED holding, or reducing interest rates, instead they announced a 0.25% raise.
On the other hand, we're still seeing the impact of the COVID-19 housing shift, and regardless of interest rates, legions of millennials are hitting the home-buying phase with steady jobs (for now).
REALITY CHECK
Overall, the current state of the housing market is closely tied to the broader economic environment and the health of financial institutions. While the ongoing impact of the COVID-19 pandemic has had a significant impact on the housing market, the continued health of banks and other financial institutions is critical to the long-term health of the housing market.
While the lack of inventory has caused a counter-balance allowing home prices to rise, we run the risk of many potential buyers simply decided not to participate in the short-to-medium term.
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.
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