The Spring Texas real estate market climbs to 2.5 months of inventory. Higher interest rates have weaken demand resulting in fewer home sales and an increase in months of inventory. Months of inventory is amount of time it would take for all homes currently on the market to sell based upon past sales activity assuming no new homes were added to the real estate market.
Six months of inventory is considered a balance market. Less than six months of inventory is a sellers market and more than six months of inventory is a buyers market. The Spring Texas real estate market is still in a sellers market. At the start of 2023, months of inventory was 1.5 months and the total homes available for sale in Spring was 625. Months of inventory is now at 2.5 months and there are 841 homes on the market.
If you are a seller, you are up against more competition. To compete you need to have your home priced right for the market, your home needs to be in good condition, and your home needs to be aggressively marketed.
If you are a buyer, more competition is good news for you. Sellers are willing to negotiate on the sales price as the median and average sales prices are 1% less than the list price. You can be picky as you have more homes to choice from. Bad news for buyers is the interest rates are higher pushing your purchasing power to the max to find the home you want. Good news for buyers is that some sellers are willing to provide / pay for a 2/1 rate buydown. A 2/1 buydown gives you a lower payment for years 1 and 2. Today’s 30-year mortgage interest rates are in the 7.675 range. With a 2/1 buydown, your interest rate for year 1 is 5.675, year 2 is 6.675, and year 3 is 7.675. You still have to qualify for the loan based upon the 7.675 interest rate but it gives you time to gradually get used to the costs of homeownership.
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%
Average Days on Market – 46 Median Days on Market – 33
Average Sales Price – $353,115 Median Sales Price – $295,000
Average Price Per Square Foot – $147.88 Median Price Per Square Foot – $143.76
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 17 – October 23, 2023