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Home Ownership Is The American Dream


Home Ownership Is The American Dream

We are half way through the year and Houston Home sales are better than predicted last year, but on the West side of town, the market still favors Sellers.

Many buyers entered 2023 anticipating that higher interest rates would translate to home prices dropping in 2023, but they did not anticipate how low inventories would impact buyer’s emotions and put them in bidding wars again that would cause buyers to continue to pay above the list price for the right house.

There honestly is not a lot of rhyme or reason to the homes that are seeing multiple offers in this market, but price, location, and condition seem to be a common theme.

While home sales are down from 2022, this is mostly a reflection of not enough inventory for buyers to choose from. Heading into July and the peak summer months, we have 2.3 months supply of  inventory in the Energy Corridor; 2 months supply of inventory in Katy; and 3.6 months supply in Memorial.  The inventory is actually higher than what we saw at the end of May.

The big news that could impact home sales this next month is that interest rates went up again last week, and buyers can expect to pay from 7.25-7.5% on a 30-year fixed mortgage. Personally, in gauging how many of our e-mails have bounced back with vacation notices in the last 30 days, I think a lot of people escaped the heat and took vacations over the last 30 days.

As we come off of the 4th of July holiday, I hope to see more people returning from vacation and that activity will pick up again before school starts. The heat is going to continue, and interest rates will remain high into August, but according to Keeping Current Matters, 78% of Americans consider home ownership the American Dream. Let’s face it, everyone needs a roof over their heads, and the costs of renting has gone up considerably as well.

Hiring a real estate professional to help you make a decision on whether to rent or buy in this market is more crucial than ever.  Remember that it takes more than a real estate license to be a professional today, so check the reviews and experience of the Realtor you choose to hire, or just call an Energy Realty agent.