At Starbucks, 24 Hour Fitness, Quizno’s, holiday parties and out -n’-about, friends and strangers (I wear a dorky name badge) ask me, “Ken, what’s up with the real estate market in The Woodlands? Should I buy, sell or hold?”.
The short answer, it depends. The longer answer….
Here’s a picture of what’s going on month by month (see below).
Here’s my commentary based on observation, study and feedback from our feet on the street Realtor Icon Team Members.
Sales are down – duh right? But, the thing is, sales are down compared to record sales numbers. Reviewing the closed sales data shows that Months Supply Of Inventory is slowly creeping up, into the range that real estate economists call “a balanced market”. A balanced market is six months of inventory. At the end of November 08′, according to Houston Association of Realtors Multiple Listing Service Statistics, there was 4.6 months of For Sale single family inventory in The Woodlands, Texas. So, if you want to sell, now is fine. If you want to test the market, now is not the time.
Other factors, according to MLS data, the Average Sold Price is down a bit. But, our top performers report that prices aren’t really dropping. What’s really happening is that there are more sales under $375,000 than before. The increased sales volume of more affordable inventory is lowering the Average Sold Price (December 08′ = $326,591.89).
Our active agents are not reporting or experiencing slashed listing prices, desperation a pop in pre-foreclosure activity ( Year To Date MLS reports 1,929 closed sales. Only 70 were Foreclosure properties) . If you’re a seller, to maximize your selling price, choose the right agent with a modern marketing plan, price your property fairly based on comparables and keenly important, stage your property well. If you’re buying, the bad news is you can’t steal a property, the good news is there are fewer buyers in the market place, which means less competition for you and the selection is good.
The Average Number Of Days On The Market For Active Listing Inventory is 107 Days. 107 is the average for all active listings in all price ranges in The Woodlands, Texas. If you’re a seller, ask your agent to update your Market Analysis to determine the averages for your specific neighborhood. If you’re above average, adjust the marketing, the merchandising or the pricing….do it now.
On a shiny note, mortgage rates HAVE fallen, they are in the very low 5% range. This is great for buyers and sellers alike. If your current mortgage rate at or above the 6.5% range and you’re going to stick around for awhile, now might be a great time to refinance and lower your payments.
You may have more questions, if so, give me call – Ken Brand 832-797-1779. Keep in mind that real estate is hyper-local in nature and what’s going on in your specific neighborhood at a specific point in time is what is relevant.
Thanks.
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“The house has grown into a knowledgeable witness. It has been party to early seductions, it has watched homework being written, it has observed swaddled babies freshly arrived from hospital, it has been surprised in the middle of the night by whispered conferences in the kitchen. It has experienced winter evenings when its windows were as cold as bags of frozen peas and midsummer dusks when its brick walls held the warmth of newly baked bread. It has provided psychological sanctuary. It has been a guardian of identity. Over the years, its owners have returned from periods away and, on looking around them, remembered who they were.” – Alain de Botton, The Architecture of Happiness, p.10
