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

   

Unfortunately … Originally uploaded by ghb624

Good News!
NEW YORK (CNNMoney.com) — Mortgage giants Fannie Mae and Freddie Mac have directed their network of servicers to halt all foreclosure and eviction proceedings between Nov. 26 2008 and Jan. 9, 2009, meant to give a recently announced rescue plan time to work.

The Streamlined Modification Program, set to launch Dec. 15, enables delinquent borrowers to get a modified mortgage that lowers payments to no more than 38% of their gross incomes.

“By delaying these foreclosure sales, the nation’s servicers will have the opportunity to work with more borrowers who could qualify for a modification under the new [program],” said Freddie Mac CEO David M. Moffett in a statement.

Freddie has told its servicers to immediately contact the 6,000 borrowers who already have auction sales or evictions scheduled for between the specified dates to tell them the sales are postponed. Fannie estimated that 10,000 of its borrowers will be affected. Borrowers facing eviction between Nov. 20 and Nov. 26 were not expected to get relief.

The rest of the STORY

Throwdown Response
Originally uploaded by Extra Medium

You might wonder?

How did last month’s wall street meltdown effect the real estate market in The Woodlands Texas?

As you’ll see from the picture below, written contracts for the month of October were down 34% compared to October 07′.

Tepid sales appears to be the result of emotional stresses. What do I mean? Qualified buyers are postponing their buying decisions because they are uneasy, not because their jobs are in jeopardy or they can’t get financing or they don’t have the means.

Like a stretched red-rubber band, pent up demand is building and we suspect that post-election and as wall street stabilizes, buyer activity will buzz-back and sales will snap forward.

Another question I’m frequently asked is, “Is there mortgage money, can you get a home loan?” The answer is a definite YES. Mortgage rates are low too.

A couple of other tidbits:

Average Number of Days On The Market For Active MLS Listing Inventory = 100 Days.

Average Number of Days On The Market For MLS Homes That SOLD and Closed in October = 79 Days.

Take Away: If your home has been on the market for more than 100 days, adjust something - the staging/merchandising, the marketing or the price position.

Averages October MLS Sold Price in The Woodlands = $321,143 (All Brokers Combined)

Average October MLS Sold Price to List Price = 95.6% (All Brokers Combined)

Average October Prudential Gary Greene, Realtors Sold Price to List Price = 97.6%

I’ll publish more market statistic information in the next couple of days. If you have any questions or comments, I welcome your call: 832-797-1779

Download The Woodlands Texas - Listing Inventory & Written Sales Real Estate Report - October 2008 Here.

I’m asked this question five or six times a day. “How’s the real estate market in The Woodlands, Texas?”

Here’s what I think and know.

Buyer activity has slowed to tortotise pace.  Suppressed activity is due primarily to phycological and seasonal factors.  It appears that the people are not fearful of losing their jobs, but the spectacular Wall Street meltdown, Water-Boarding media coverage and the very real Retirement Account Haircut has people pissed angry panicked sad frozen fearfully cautious.  When people are fearful, they slow way down, plus real estate activity always ebbs during the Holiday Season.  As a result, buyer activity in The Woodlands has cooled but it hasn’t frozen. Sales prices aren’t plunging, but sales units dwindle. 

I believe that as Wall Street settles bottoms, the elections conclude and retirement accounts stop hemorrhaging, people will feel safer and pent up demand will reheat real estate activity.

Another frequently asked question, “What about foreclosures in The Woodlands?”  Here’s the deal.  There aren’t many foreclosures in The Woodlands.  The Woodlands real estate market has been bull strong for years.  As you can see from the first picture below (Blue Headline), there have been only 64 Foreclosures Sold in The Woodlands Year To Date.  These 64 Closings represent less than 3.5% of the total number of sold properties.  Here’s the rest of the story, while rare, the average price per square foot is $36 less than the total average, and they sell fast.  If you find one and you like it, don’t screw around, take action or it’s gone.

If you have any questions about real estate in general or I can help you with anything, give me a call: Ken Brand @ 832-797-1779. Or you can ask a question in the comment section and I’ll get back to you.

If you’re a Realtor Icon and you’d like some tips on how to track the market - Click Here

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September’s real estate market sucked lemons.  Hurricane Ike plus the Wall Street meltdown tranquilized the market.  I see evidence that the hangover effects are ebbing, activity and action shouldl improve in October.

Here’s a snap shot of what happened. (Statistics obtained from the Houston Association of Realtors, Multiple Listing Service - Market Area =The Woodlands, Texas)

Contracts written on listings fell 29.5% in September.  The total number of September 08′ written sales = 117 / September 07′ written sales = 166

Listing Inventory fell by 10% as well.  There are fewer homes for sales today than last year at this time.  Active listing inventory on October 5th, 08′ = 800.  This is good.

There is a 5.1 month supply of available For Sale inventory.  Real estate economists believe that 6 months of supply represents a balanced real estate market.  The Woodlands Texas real estate market is skewed towards a seller’s market - still.

Average Days On Market for Sold Listings in September bloomed from 57 Days On Market in September 07′  to 80 Days On Market for September 08′.  Not too shabby.

Average Sold Price in The Woodlands Texas for September 08′ is $375,706.  Average Sold Prices have slowly and steadily risen 26.8% over the last two years. This is positive.

The Average September Sold Price To Original List Price Percentage for The Woodlands Texas = 96% (The Prudential Gary Green Average leads all major brokers in The Woodlands, Texas.  See market share reports below).

Bottom line = September sucked for written sales.  For Average Sold Prices and Listing Inventory, September was fine. October results should bounce forward.

To download the complete collection of market reports - Real Estate Market Reports - Full Collection, The Woodlands Texas, October 5th, 2008

Any questions or comments, feel free to give me a call - Ken Brand 832-797-1779

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In an earlier post I shared 192 Ways To Market A Listing.  The goal?   Eliminate all the inconveniences of squatting stalled on the market, sell fast, sell for Top Dollar and eliminate nasty surprised.

It’s confirmed that 80% of the home buyers begin their search on the Internet.  If you’re a seller, having your property information broadcast blasted, far, wide and deep, is absolutely the way to go.  More exposure equals success.

In an earlier post, I listed the websites we use to promote our listing inventory.  Now we have a graphic that illustrates the reach.  

If you have any questions about marketing, let me know:  Ken Brand - 832-797-1779 

Team Members - You can download the graphic for use in your marketing proposals by clicking HERE.

Schools back in session.  Holiday season is just around the corner.  Hard to believe that Christmas is only 112 days away.

 If you want to be in your new home or out before Santa’s Sleigh lifts off, time to act.

Here’s what I see for citizens.

Seasonally listing inventory and sales velocity steadily ebb through the last quarter and begin marching upward after the first of the year.

Current Months Supply Of Inventory = Sellers Market.  Real estate economists agree, six months of for sale listing inventory equals a balanced market.  More inventory equals a buyer’s market, less than six months equals seller’s market.  The Woodlands, Texas Months Supply Of For Sale Listing Inventory = 3.9 Months.

Average Days On Market for Sold and Closed Properties - August, 2008 = 51 Days.  Properties that are staged, merchandised, marketed and priced competitively sell fast.  Properties that are missing one of the ingredients, sit for awhile.  The Average Number Of Days On The Market for unsold Listing Inventory is 91 Days.  Take Away:  Average Days On Market vary by price range, but, if you’re selling and your property has been on the market longer than average, make adjustments now.  You can adjust the merchandising, marketing, staging and the price.  Do it now. In the next 120 days there will be fewer buyers in the market place.

Are Sales Prices Rising or Falling?  Over the last two years, Sold Prices in The Woodlands, Texas have risen 16%.  The Average Sold Price for August, 2008 = $343,959.  

Take Away:  We aren’t living in Phoenix, Miami or Stockton.  Prices are not falling.  If you’re a buyer and you find a property that excites you, buy it now.  Prices should continue to climb.

August Stats for The Woodlands, Texas - all brokers combined:  For Sale Listing Inventory is 13.5% higher today than it was last year, 880 vs 775.  Written Sales Contracts for August were down 24.29%, 187 vs 247.  

The Big Picture Paradox = Sold prices steadily incline, Months Supply of Inventory remains low.  There are fewer sales than last year at this time and there are more homes for sale.  Brokers and buyers and sellers around the country dream about the day their real estate markets look like ours.  Our market is healthy and strong, it is equal to the record breaking activity of two years ago.

Here’s what I see for real estate agents.

The real estate market is a friend to the savvy, sensitive, hustler.  The weak, lazy and slow will starve.  There are fewer transactions, competition is greater and citizen expectations are higher than ever (rightfully so).  To win you must talk to more people, market and merchandise more effectively, communicate more frequently, follow-up more meticulously and deliver everything your clients want, the way they want it, when they want it.  Pretty simple to understand, difficult to do.  The good news, do it and you’ll steam roll the lazy.  Get to it!

If you want to pour over the reports and draw your own conclusions, amen.

If you’d like to download both reports, Click HERE

If I can help you with anything, let me know:  Ken Brand - 832-797-1779

According to Forbes.com Houston is the place to be:

Best U.S. Cities for Earning a Living

Thursday, August 21, 2008 Though Houston has plenty of fat cats, this is not a story about America’s Most Overweight Cities.

Rather, Houston is recognized here for its dynamic business environment, low unemployment and high wages relative to income. These factors make Houston the best city to earn a living by our calculations.

A record amount of money has been made off oil and commodities this year, and Houston is the American business hub of those industries. Throw in the weak dollar, which allows Houston-based materials companies to glean more cash off exports and increases the price of gasoline, and it’s easy to understand why the city excels.  MORE 

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Good news for us.  Any Questions, give me a call:  Ken Brand 832-797-1779