The Spring Texas Real Estate Market remained at 1.9 months of inventory for the second week in a row. With Interest rates in the high 6% buyers are sitting on the sidelines waiting for the rates to drop. When will the interest rates drop? A recent Morningstar forecast suggests 30-year mortgage rates will average 5% in 2024 and 4% in 2025. If the forecast is accurate get ready for listing agents to say “multiple offers” on every listing.
The Spring Texas summer market of 2022 is definitely different than 2023. There are fewer buyers. With lower demand comes an increase in days on market. The average days on market for homes sold and closed last week was 30 with the median clocking in at 11. Homes in a good condition with a great location and priced for the market are receiving multiple offers. In 2023, the homes receiving a smaller quantity of offers. The difference between 2022 and 2023 is they are receiving fewer offers.
The low number of homes for sale are keeping average sales price to list price ratios high. Last week the average sales price to list price ratio was 99% and the median was 100%. The highest sales price to list price was 105%.
In the summer of 2022 buyers were thrilled to win a multiple offer bid. They scurried to lock in interest rates before they went any higher. Repair negotiations during inspections were easy as the sellers agreed to very little. The buyers didn’t like it but they moved forward with the purchase.
Fast forward to the summer of 2023 where mortgage interest rates are in the high 6% range. Housing prices have remained stable. Inflation is not under control. There’s more homes to choose from and there’s less demand. Buyers are nervous and fickle. Repair negotiations after inspections are rough and buyers are willing to terminate their contracts and move on.
Wondering how your Spring Texas neighborhood is faring? Reach out to Jill Wente, top rated Spring Texas real estate agent to discuss if now is the right time for you to make a move.
Market stats are from the Houston Association of Realtors for Spring Texas properties classified as single family homes for the week of July 4 – July 10, 2023
