What exactly is going on?

If you’re reading this post, it’s likely that you have recently opened the HAR app on your phone and your face probably turned blue with the sea of green on the screen.

Yes, it’s true – the sudden influx of supply has tilted the equilibrium balance towards the buyer. To keep it in perspective, the last couple of weeks over 160 homes were added to the market – and of those only a handful have a contract.

 

 

Now, this is not the end of the world. Believe me, we’ve seen worse — there is a logical explanation to what we see:

– The overall macroeconomic indicators are playing a direct role in the slowdown of overall real estate activity. Case in point:

  • Oil and Gas not meeting Wall Street expectations (XOMShellChevron) – although these large employers are absorbing a lot of office space, they feel the pinch of under-$50 barrel oil prices.
  • Geopolitical uncertainty around key areas (China, Europe, Middle East, LatAm), that, coupled with a strong dollar and the potential for a hike in interest rates, makes foreign investment both attractive (capital flight from non-US markets to our country) and unattractive (more expensive in local currency).

 

Translating to local side effects, the Average Days on Market (DOM) in town has grown considerably, with Creekside Village topping the list of longest. Here’s the overall breakdown:

  • Alden Bridge & Sterling Ridge (77382) have the most active inventory and the most pending sales. It’s tied in first place for least DOM in the area at 44 days.
  • Cochrans Crossing, Indian Springs and Panther Creek are the other communities enjoying lower DOM (44 days) – further, it’s the zip code where the slowdown in sales has hit the least (15% reduction, based in our calculations).
  • Grogans Mill and Town Center (including East Shore) is an interesting area – unique products (like the homes on the Waterway) go quicker, but overall, it’s slower to close.
  • Depending on what side of Kuykendahl the property is located, Creekside Village homes have an average DOM of 104 days (east side – 77389), or  169 (west side – 77375). Keep in mind that this is across all price ranges, and the west side leans towards price points above the east side.

 

What it means to you

– As a Seller – be patient, but be prudent and nimble. It’s good to have competition, but the idea here is to be better than the competition. Buyers will be picky because there will be more choices to pick from, and every showing will count to make your home the best on the block. Let us know how we can help you beat the competition in this market.

– As a Buyer – While we can say that it’s not last year’s market, this “respite” provides you with more time to really refine your “must haves” and “nice to haves.” What this means is that there’s a good chance that with the larger inventory, it’s likely that you can get it all at a decent price. One more thing – if you’re borrowing, be aware of the new regulations going into effect starting October 1.

About Danny Sanchez

Joining Rianne's award-winning team after a successful career as a Program and Operations Manager for a global outsourcing firm (with Fortune 100 companies as his primary clients), Danny has seen The Woodlands grow to what it has become today since 2001. An advocate for innovation and perfecting the Best Possible Real Estate experience, he understands very well that clients always come first. In his own words, "success looks like clients feel that they don't have any needs - because you've more than anticipated them."