Higher mortgage interest rates has dampened homebuyer demand causing Spring Texas homes to sit on the market longer and for months of inventory to grow. With 92% of mortgage holders with interest rates below 6%, buyers are disincentivized to move. Move-up buyers are missing from the year of 2023. The buyers and sellers of 2023 that are driving the market are doing so due to the 7 Ds: diapers, death, diamonds, divorce, diplomas, defaults, d’relocation.
Are you a first time homebuyer waiting for mortgage interest rates to decrease? Fannie Mae, National Association of Realtors, and the Mortgage Bankers Association are predicting 30-year mortgage interest rates to be in the 5.6% -6.3% by Q2 2024 which is a sharp decrease from the 7.2% rates of today.
When the rates drop and they eventually will pent-up demand will enter the market. The frequency of multiple offers will increase with overlist offers returning.
What to do? If you are a buyer, purchase a Spring Texas home now when there’s more homes to choose from, lower prices, and less demand. When the rates drop, refinance your mortgage. If you are a seller, if you have to sell now due to lifestyle prep your house for sale to attract as many buyers as possible. If you are a seller who has flexibility in the timing of your sale, wait until the mortgage interest rates drop and demand increases.
Here’s the need to know numbers on the Spring Texas real estate market:
Average Sales Price to List Price – 98.5% Median Sales Price to List Price – 99.6%
Average Days on Market – 34 Median Days on Market – 21
Average Sales Price – $380,274 Median Sales Price – $344,086
Average Price Per Square Foot – $148.21 Median Price Per Square Foot – $145.79
Market averages are approximately 30 days behind the current market. Average Days on market for the homes that went under contract last week was 32. Transactions will be down for 2023 but volume will remain about the same as 2022.
Curious about how the real estate market is in your Spring Texas neighborhood? Reach out to Jill Wente, top rated Spring Texas Realtor 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 September 12 – September 18th, 2023
