Cheers to 2023! A new year is a new opportunity, full of possibility, hope, and potential.
Wishing you a great start to 2023 and health and happiness all year long.
Read on to gain insight into The Woodlands real estate market
and discover lifestyle trends to kick off your New Year.
THE ECONOMIC HEADWINDS OF 2022 BRING HOUSTON’S HOME SALES HOT STREAK TO AN END.
Mortgage rates, inflation and lack of affordable inventory interrupt Houston’s seven-year run of record-breaking home sales.
HOUSTON/HAR — Despite charging through a pandemic with no let-up in sales, Houston real estate could not withstand the powerful economic headwinds that began swirling in 2022 and ultimately ended a long and much-admired record-setting run. On top of limited affordable housing inventory, mortgage rates were perhaps the biggest culprit, rising throughout most of the year as the Federal Reserve drove a steady campaign of interest rate hikes to tame soaring inflation. The move prompted many consumers to postpone homebuying plans – in many cases diverting to the rental market which thrived as a result. While mortgage rates have fallen steadily since surpassing seven percent in November, home sales continue to slow and will likely remain down through at least the early part of 2023.
Single-family home sales for 2022 were down almost 11 percent compared to 2021’s record pace, marking the first year that Houston housing has been in the red since 2015. Despite the sales slowdown, prices rising to new highs in the $400,000s kept 2022’s total dollar volume close to last year’s record level.
TO READ THE FULL HAR REPORT – CLICK HERE
December Monthly Market Comparison
The Houston housing market generated mixed results in December. Single-family home sales, total property sales, and total dollar volume fell compared to December 2021 while pricing rose. Month-end pending sales for single-family homes totaled 5,493, down 19.6 percent versus one year earlier. Total active listings, or the total number of available properties, surged 55.2 percent from a year earlier to 33,776.
Single-family homes inventory grew from a 1.4-months supply to 2.7 months. For perspective, housing inventory across the U.S. currently stands at a 3.3-month supply, according to the latest National Association of Realtors (NAR) report.
Please CLICK HERE to access a downloadable PDF file for HAR’s Monthly Activity Snapshot (MAS) of the December 2022 trends.
Real estate markets are hyper-local in nature.
Market conditions in your neighborhood are different
than The-Sky-Is-Falling click-bait headlines about far-flung neighborhoods
in other states and cities.
Please contact me if you’d like a detailed market report for your neighborhood.