The Katy inventory today has exceeded 100! As I predicted last month, the inventory levels are creeping up in all markets as the weather warms and more sellers prepare to list their homes in what is considered the selling season. Watch my Monday Market Update video for an explanation of what we are calling 1-2 months’ supply of inventory!
We have all been on the edge of our seats as predictions that mortgage rates would increase held true and interest rates exceeded 4% on a 30-year mortgage in some cases, but the war in Ukraine caused another shift in rising mortgage rates. While the prediction is that this war will cause interest to rise again, the immediate reaction was a drop in interest rates last week by .25-.50%! This was great news for some of our buyers just going under contract, and they locked their rates quickly.
While the war in Ukraine may have been good news for interest rates, we should approach this with solidarity as it is not good news for the rest of the world. Again, Houston is seeing a positive impact as oil prices catapulted over $100 a barrel for the first time in 8 years, but the rest of the United States is feeling the impact of higher prices at a time when inflation was at an all-time high.
How will this impact the real estate market? Time will tell, but the prediction is that the war in Ukraine will push the cost of goods even higher, making housing affordability even higher across the United States. In our local market, we are seeing a surge in relocation as oil companies staff up again in Houston in response to surging oil prices. This is good news for our real estate market.
People ask me about my opinion on the real estate market all the time, and my typical response is, “Unless something happens around the world to change that.” The war in Ukraine is another example of how quickly a market can shift in reaction to a world event. Stay tuned for my Monday Market Updates for a brief update on my real view of what is happening in Houston’s real estate market.
By: Sherry Campbell