Although climbing to 2.4 months, the Spring Texas real estate market remains a sellers market. Six months of inventory is considered a balanced market. Less than six months of inventory is a sellers market and more than six months of inventory is a buyers market.
Nationwide 96% of homeowners have an interest rate of 6% or less. Today’s interest rate for a 30 year conventional mortgage is over 7.5%. Homeowners may be able to afford a higher mortgage payment but they are just unwilling to give you their low interest rates. When mortgage interest rates will come down is a heated discussion of topic that I nor anyone else with a crystal ball can tell you the answer. Stubborn inflation is keeping the rates higher longer than expected.
Do you wait to buy or buy now? If you can stomach the monthly payment, buy now. Historically Spring Texas home prices continue to increase. Buying now puts you in a better position to negotiate as there’s weaker demand. You can refinance your mortgage when the rates decrease. When the interest rates decrease, you will be competing against more buyers which will drive up the home prices.
Do you wait to sell your Spring Texas home or do your sell now? Depends on your goals. Does your current home not fit your needs any more? Are you ready to downsize? Are you ready to upsize? Higher mortgage interest rates have pushed buyers out of the real estate market. Yes, it’s going to take longer to sell your home today than it would have 18 months ago. If you are wanting to upsize, now is a great time to sell. If you are wanting to downsize, you may want to wait until the interest rates decrease and more buyers return to the market.
Here’s the need to know numbers on the Spring Texas real estate market:
Average Sales Price to List Price – 97.7% Median Sales Price to List Price – 98.9%
Average Days on Market – 52 Median Days on Market – 38
Average Sales Price – $350,410 Median Sales Price – $313,750
Average Price Per Square Foot – $147.68 Median Price Per Square Foot – $141.66
I predict the number of home sales and transaction volume will be down between 10% – 15% for 2023 over 2022.
Market stats are from the Houston Association of Realtors for Spring Texas properties classified as single family homes for the week of October 3 – October 9, 2023