HAR has published the FRESH report for April.
Look at how many listings came on the market! Almost 18,000 properties. As I've said, this is the time of year all of the elective movers come out of the woodwork to get sold.
Total listing count is up to nearly 38,000 and the average list price is down fractionally at 1.4%.
If you took an economics class in high school or college then you understand Supply and Demand and how that affects prices. Supply and demand can both increase or decrease independently but if supply outpaces demand you will start to see prices decline and we're seeing that a little bit here.
Now, keep in mind this is an average of a city of 6-8 million residents, hundreds of different subdivisions, and dozens of school districts. There are a plethora of factors that affect the value of any individual house, and certain pockets of Houston are still very robust.
Where I am seeing slower movement and reduced showing traffic are homes listed anywhere near new construction.
The new construction industry's future depends on the continual sale of new construction homes, regardless of the market conditions, regardless of total inventory levels, regardless of buyer demand not keeping up with supply. If you stop putting new homes under contract for very long, your company goes out of business.
So what areThey're offering 10-20-30K in top line credits to the buyers to spend on internal upgrades or closing costs.
This is a win for them because the 20K in top line "upgrades" might only actually cost the builder 5-10K in materials.
The bottom line is this, it's easy to tell what the market believes about any house if you collect good data and know how to analyze it. That's what we've been doing at Apex Properties for the last 5 years and nearly 800 transactions.
We show up.
We pay attention.
We tell the truth.
If you, or anyone you know needs a Real Estate professional, reach out to me anytime.
