Coming to terms with the current market has been tough for everyone - Sellers, buyers, listing agents, buyer’s agents, and lenders alike. I do think we are due for a fastening-of-pace in the Spring, which usually starts in February here in Houston.
Most banks are no longer forecasting a dip in the economy in Q1 of 2024, but I think it’s important to be aware of your current surroundings and to always be prepared. If there is a significant economic slow in Q1 2024, the Fed may have little choice in allowing a respite in interest rates. With that being said, I think we all know what happens when IRs decline in any meaningful way: a flood of buyers into the market, elevated prices, and increased competition.
It’s worth noting that some houses in the loop and in the suburbs are still selling in less than a week at over list price or at full list price. There’s a recent closed property in Rice Military originally listed at $850,000 that closed at over $915,000 at only eight days on market. (Let me know if you want to know more). And I’m still seeing many properties go pending in under 14 days. These sellers are ones who have the magic combination of price/condition/location/scarcity.. Then exploring the other end of the spectrum: there are houses that are absolutely gorgeous and priced VERY well that have not yet sold, even at over 100+ days on the market and several price adjustments.
If you are ready to sell, then sell. But it is imperative that you strategically price it and make sure it is in the absolute best condition possible. The majority of the buyer pool that are still subject to interest rates are extremely price and condition sensitive. Be prepared for possible outlandish requests and an emotional roller coaster. If you are ready to buy, there is a possibility you may be able to negotiate a great deal on something that has been on the market for 60+ days, but also be prepared to go toe-to-toe with multiple offers if other buyers also see it as their perfect house. In my opinion, I think it's a great time to buy in that this is one of the only time periods since early 2020 that buyers have had the ability to “think on it” and "negotiate.
Below is data broken out by zip code for recent price reductions, pendings, solds, bac on markets, and total number of showings for this month. Want to see more specific numbers for your zipcode, or to talk more about your specific market and circumstances? Call me or reply to this email. 832-465-6458.
