Dear TEXdot Family,
Just a quick blog update about the market condition and inflation.
With the increase of the prime lending rate, inflation is officially setting in.
What does this mean for real estate? Typically as the interest rates rise, the values of home lessen. We have been in a sellers’ market since 2018 for many price points. I suspect that will be changing. A balanced market for the city of Houston is a six month supply of homes for sale. We have been operating on close to 3.6 months for several years. Of course not all subdivisions are at this same number, but most are. Like all things that are real estate related, “it depends” is often the answer. The number of months’ supply will change the absorption rate as well, which can make it harder for individuals to move their properties. You’ll see confirmation of this with price reductions. Also denoted on MLS with an asterisk (*) by the sales price.
In addition to the sales prices changing, we also see a change in consumer confidence. The end result of confidence wavering usually means people hold onto their money because they are uncertain about what their future holds.
If you need anything from me or have any questions, please feel free to give me a call. 832-818-3559
“This little light of mine, I’m gonna let it shine.”
Dorothy J. Wanko, President
Broker, TRLP, CIPS, GRI, ABR,
TAR and TREC Instructor
“Dot” – Professionals you can trust!
TEXdot Realtors, Inc.
Please leave us a review on Google