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Dear Kathy,,
What an eventful week here in the Houston area! We hope everyone stayed safe and that any property damage was minimal. Some areas are still without power, and our thoughts are with those affected.
So, what’s happening in the market? Each week brings new developments in real estate. Although it remains a strong seller’s market, homes aren't selling as quickly as expected. The key reasons? Many properties are either overpriced or lack the updates buyers desire. Today’s buyers prefer move-in ready homes and are hesitant to invest additional time and money into renovations. They are cautious about pricing and don't want to overpay, with lender appraisals (except for cash offers) ultimately determining loan values.
What sets the price of a home? Comparable properties play a role, but the market’s demand is crucial—homes are worth what buyers are willing to pay. It's vital to stay updated on buyers' preferences regarding price, condition, and location.
Interest rates continue to be a concern. Many buyers are accustomed to the 2-3% rates of recent years, finding today’s 6-8% rates hard to accept. We've included a brief history of interest rates since 2021 below to help you form your own outlook on future trends. While we can't predict the future, the information might provide some clarity.
With the upcoming election, it's easy to assume it will impact the market. However, historical data suggests that elections have less influence than we might think. We’ll delve into these statistics next time. Stay tuned!
Have a wonderful weekend, and please reach out if you need assistance or referrals. We’re always here to help with our extensive network in the Houston area.
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