What’s going on with the Spring TX real estate market? Is it good, is it bad, is it time to sell, is it time to buy?
Real estate is LOCAL and its fairing better in some cities than in others. The Long Beach CA real estate market is different than the Hoboken NJ real estate market which is different than the Houston TX market which is different than the Katy TX market which is different than the Spring TX real estate market.
Anyway you get the picture. Real estate is LOCAL.
The only real estate market that I am going to discuss is the Spring Texas real estate market because that’s the one I know.
The interruption caused by Hurricane IKE skews our September numbers. Thus comparing September 2008 to September 2007 does not provide an accurate picture.
Instead I am comparing September 2008 YTD to September 2007 YTD which in my opinion is a better representation of what is going on in the Spring Texas real estate market.
- Sales ? – 17.7% decrease in YTD Sales with 2,459 sales YTD 2007 sales versus 2,023 sales YTD 2008. A decrease in sales is not surprising considering there are fewer qualified buyers.
- Median Home Price ? – Down 1.4% from $146,000 to $144,000. GOOD NEWS is that home prices are holding steady and only experiencing a small decrease.
- Active Listings ? – Listings on the market has decreased 6.4% from 1,757 YTD 2007 to 1,645 YTD 2008. A decrease in active listings is good
- Months of Inventory ? – 10% increase in months of inventory with YTD being 6.8 months. Over 6 months of inventory is typically considered to be a buyers market.
- Days on Market ? – 10% increase of Days on Market from 80 to 88. Buyers are being more choosy. They feel no urgency to buy and are taking their time to make a decision. Requiring home sellers to be more patient.
- Sales Price to List Price ? – No change in the Sales Price to List Price which remains at 97%. Sellers are not feeling pressure to take LOW BALL offers.
In summary:
Yes, we have seen fewer sales of Spring Texas homes in 2008 vs 2007. But the quantity of sales is NOT as CRITICAL as what is happening with our home prices. Home prices are holding steady with only a small decrease. Since home prices are holding steady, sellers are not feeling pressure to accept LOW BALL offers as represented in the sales price to list price ratio of 97%.
If you are looking to buy a home now is the time. With 6.8 months of inventory, buyers have the upper hand in negotiations causing sellers to be more reasonable on purchase terms. Money is still available and lenders are looking to lend. Interest rates are still reasonable with FHA rates hovering around 5.5% – 6.0%. Since home prices are holding steady, buyers do not have to be overly concerned with purchasing a home today that is worth considerably less tomorrow.
If you are thinking about selling your Spring Texas home, contact Jill Wente at 281.804.8626. If you are considering purchasing Spring TX real estate, please contact Jill Wente & Company and we will guide you through the entire home buying process.
Read also:
- FHA minimum down payment increase postponed till January 1, 2009
- First time home buyer tax credit – what is it and how to get it
The data represented is from the Houston Association of Realtors MLS for Area 13. Area 13 covers the geographic boundaries of East – I45 to West – Hwy 249 to South – Beltway 8 to North – Spring Cypress.
