Spring Texas Homes under contract dropped 8% week over week. Uncertainty in the market due to a readjustment in borrower fees on conventional loans and the Fed’s increase in the overnight borrowing rate caused buyers to take a pause and reevaluate their finances. New listings hitting the Spring Texas real estate market showed no movement week over week.
Low inventory of 1.4 months continues to keep home prices stable. Six months of inventory is considered a balanced market. Less than six months is considered a sellers market. Higher home prices and higher mortgage interest rates are a disincentive for move-up buyers. They are dealing with their less than ideal home and not moving.
According to Goldman Sachs, 99% of borrowers have a mortgage rate lower than 6% (or the current market rate). Of those, 28% locked in rates at or below 3% and 72% locked in rates at or below 4%. Inventory levels will remain low while mortgage interest rates are high.
With low inventory, sales price to list price ratios will remain high. Last week’s average sales price to list price ratio on Spring Texas home sales was 99%. The median sales price to list price ratio was 100%. The median home sales price and average sales price was $319,950 and $386,884, respectively. No material change from last week. Average days on market was 58 with median days on coming in at 24.
When you want to know what’s going on with the Spring Texas real estate market, reach out to a local Spring Texas Realtor for invaluable market insight. If you have questions about the market, reach out to Jill Wente, Realtor® @ 281.804.8626
Market stats are from the Houston Association of Realtors for Spring Texas properties classified as single family homes for the week of May 2 – May 8, 2023
