Tis the Season….to take a break and enjoy the holiday! If you have been looking for a home to buy that is updated, well-priced, and has great outdoor space, the inventory is at an all-time low and it has been slim pickings!
Just as I stated last month, buyers are fatigued with looking for homes and bidding against multiple buyers, and it has created a strange reaction of buyers offering above list price then terminating the contract. A warning to sellers—the highest price is not always the best offer!
Buyers: don’t assume that just because a home has been on the market for over 30 days that there is something wrong with it. Ask your agent to look at the archive and inquire why the Contract fell through. If there are previous inspections, ask to see the inspection before making an offer so you have the full picture of what you are looking for. Many of these homes are only stigmatized by jumpy buyers that terminated for no reason.
Inventory levels are at 1.8 months supply in Houston, and in the suburbs like Katy, those levels are even lower. As we speak today, there are only 130 homes for sale in all of Katy! As reported in the Houston Chronicle article in this newsletter, home sales were down in October, but rebounded in November, right before the holiday season started. This rebound in home sales caused another 5% increase overall.
We expect to see the fast-paced market continue into 2022 with Sellers maintaining an advantage as there are more buyers than homes for sale. Stay tuned for our predictions for 2022, but we are heading into the new year with great optimism. With oil prices at the highest price since 2014, Houston home prices should continue to appreciate well into 2022, despite the Omicron variant looming over us this month.
Will interest rates go up? Possibly, but we’ve seen them go up and then back down again, and with the 30-year fixed mortgage rates below 4%, it is still a great time to buy a house if we see some inventory come on the market. I know buyers have been anxious with little to choose from, and sellers are on the fence about the best time to list their homes. For now, I am just advising that we all take a break and enjoy the holidays! Happy Holidays everyone!
By Sherry Campbell