School is back in session and our Fall market should be in full swing of heating up as the weather
cools in Houston, but record low inventory levels along with record high interest rates are not painting a
promising picture for the last quarter of 2023.

The Houston real estate market does not normally parallel the rest of the United States, but I
think this time, the article that we have shared from Forbes is spot on with what is happening in
Houston as well as the United States as a whole.

At the beginning of 2023, economists forecasted that interest rates would drop to around 5.5%
by the end of this year, but it’s not happening, and it is more likely that we will see another rate increase
rather than a drop before the end of the year.

So why are we still seeing multiple offers on homes? Fortunately, we still have buyers that are
ready and willing to purchase a home, but with a low inventory of homes that people want to buy, we
are still seeing bidding wars in some markets.

As I write this article, the Memorial market has 3.6 months supply of inventory with an average
sold price of $635,000; the Energy Corridor has 2.1 months supply of inventory with an average sales
price of $217,000; and Katy has 1.8 months supply of inventory with an average sales price if $268,000.

Is there relief in sight for home buyers? Prices are predicted to cool as inventory levels increase,
but until interest rates drop, most sellers are not willing to sell and pay a higher mortgage for another
home unless they have to sell. Be prepared for that not to happen until the beginning of 2024.

If you are in a position that you have to sell this year, I suggest you work with a seasoned
professional that will guide you on the getting your home ready to sell and suggest the right price,
because it is a seller’s market.