The adage; “look on the bright side”, is an apt metaphor for the market results for July. And I found plenty of good news too. That is, for Buyers. Not much so much for Sellers though. Buyers should be delighted with an abundance of good selection from which to choose from, lots of great deals, and the opportunity to buy now before interest rates rise further. In addition, oil prices are steady, consumer confidence is up and companies are hiring. So, why not be a Buyer today?
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Market Results for or all of Zip Code 77441:
On the “dark side”, are the Sellers who are witnessing a continuing trend of rising inventory, increasing Days on Market (DOM) and a bit of downward pressure on Price. Many are feeling anxiety and frustration of being “boat anchored” with little control over being able to sell their home, while trying to “keep their head above water”. Okay, I like metaphors! Sellers have a good reason to feel this way. In July, the number of Active homes on the market rose yet again, and the number of Listings in Pending Status declined again. Neither are a positive trend. Sales increased; yet the total number is still too low.
With (310) homes on the market, that means there is nearly a six-month supply.
How many Sellers expect to take (180) days to sell their home? And, that would be just the average! So, below are the results for July:
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Total Active Listings:
July: 310
June: 293
Change: +17
% Change: 5.8%
Listings in Pending Status:
July: 87
June: 91
Change: -4
% Change: -4.45%
Homes that Sold & Closed: J
uly: 55
June: 59
Change +4
% Change: +7.8%
Below are the July results by Community.
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Weston Lakes:
Rising inventory of available homes has not abated. The total now rests at (61). That is too many. However, there are (15) in various stages of Pending Status, which is good news. Yet, of these, only (2) are in Option Pending. That means in nearly 1/3 of the month, only (2) went under Contract. That is not enough Sales velocity to keep pace with new Listings entering the market. There were (8) homes that Sold, somewhat good news, yet at this rate of activity, there would be nearly 8-months of supply. In addition, the
average Sales Price dropped to $132 per square foot. This is down significantly from June.
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Fulbrook:
Over the last several years, Fulbrook has been the “shining star” of acreage communities. I was a little concerned last month, yet in July the results were very rewarding. The number of Active Listings remained constant at (8). Good news. There are (2) homes in Pending Status. More good news. There were (4) homes that Sold. That is great news! However, the dynamics also changed. Of the (8) Active homes, 75% are Listed above $1 million. Most of these Listings happen to be ours, so we will soon find out how good we are and how good the market is! As insight, in all of both Zip Codes 77441 and 77406, there have only been (3) Listings that have Sold that were over $1 million and on 1-5 acres …this year!
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Fulbrook On Fulshear Creek:
There should be a sign out front that says “Welcome Buyers”. They are certainly needed. Active inventory rose to (28). There are (4) homes in Pending Status, of which (3) are Resales, so that is good news. However, there are none in Option Pending and only (2) Sold in July. You only have to look at the Days on Market (DOM) to see the severity of the difficulty Sellers are facing. For those in Active status the average is a whopping 331 days! And, every day that number increases…
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Cross Creek Ranch:
In June, the good news of the number of Active homes declining reversed course and rose by 10% to a total of (124). In July, the unabated “wave” of new Listings entering the market continued and the Actives rose by (13) to (137). That is back-to-back, double-digit increases. Worse? The number of Listings in Pending Status is just (47). And, the number that Sold decreased significantly by 20% to just (29). In short, just as in June, the trends in July were not positive due to rising inventory and declining Sales activity. Once again, call your friends and family and tell them now is a great time to buy in Cross Creek Ranch!
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Fulshear Run:
As with every other community, Fulshear Run fell victim to rising inventory, increasing by (3) to a total of (8). Since this is a New Home community, and the inventory is comprised of “spec’s” that include those completed, and those in various stages of construction, we will then have to wait to see if the Builder increased the inventory to meet expected demand. If so, then this increase would have been a smart decision. However, there is (1) home in Pending Status, so the velocity of Sales will have to increase.
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Summary: As indicated in the opening, the market is not as healthy as it should be, considering this is the “hottest” selling months of the year. Previously mentioned, this is a wonderful opportunity for Buyers. Conversely, Seller’s should be warned that if they don’t sell their home in the best months, they are less likely to do so in the upcoming winter months. As mentioned in prior Newsletters, in a slower market, Buyers become even more selective and have little appetite to buy any Listing that is not exactly what they want. Why should they, there are plenty of other homes on the market in which to choose. This is why Sellers need to be very cognizant of the current market and what they have to do, not only to meet, but to beat the competition. Sellers should recognize that they are in both a Beauty Contest and a Price War. And, they have to win both. Importantly too, Sellers should seek expert advice on how to stage, how best to position your home and how to effectively market it in tough times. So, take two aspirin and call us in the morning!
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