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Houston Real Estate News: July, 2024 Housing Market Snapshot

Tue, 03 Sep 2024 01:21:15 GMT

July marked the third consecutive month where total property sales declined, with sales down 2.1 percent year-over-year. Total dollar volume rose 4.4 percent to $3.8 billion. Active listings, or the total number of available properties, increased with 30.5 percent more listings for sale compared to July 2023.

Single-family home sales rose 1.8 percent year-over-year;
Days on Market (DOM) for single-family homes went from 42 to 44 days;
Total property sales were down 2.1 percent with 8,969 units sold;
Total dollar volume increased 4.4 percent to $3.8 billion;
The single-family median price increased 2.9 percent to $350,000;
The single-family average price rose 4.7 percent to a record high of $445,440;
Single-family home months of inventory registered a 4.3-months supply, up from 3.1 months last July;
Townhome/condominium sales continued to decline, falling 19.5 percent, with the median price up 0.7 percent to $221,500 and the average price declined 0.8 percent to $261,123.

“Despite the temporary setbacks caused by Hurricane Beryl, we expect to see transactions catch back up next month,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “Recent declines in mortgage rates have also given consumers a bit of renewed optimism, with some previously hesitant buyers now showing increased interest in buying a home.”

Adapted from Houston Association of Realtors (HAR)

Categories: Market Overview, Home Sales

Commonly Asked Questions from Sellers

kischmachannette@gmail.com (Kischma Channette) — Tue, 03 Sep 2024 01:14:22 GMT

1. “Do I have to pay the Buyer’s agent?”

The straightforward and long-standing answer is, and has always been, no.

Compensation paid to the Listing Brokerage (which represents the Seller) is typically determined as a percentage of the property’s selling price and is agreed upon between the Seller and the Listing Agent when entering into a Listing Agreement. At that time, the Seller may also choose to compensate the cooperating Brokerage for bringing a qualified Buyer, and, if so, that amount will also be included in the Listing Agreement. At closing, the dollar amounts are disbursed to the Brokerage(s) by the title company.

It has always been a Seller’s choice to not cover the compensation to the Buyer’s Agent, and, conversely, it has always been a Buyer’s responsibility to compensate their Brokerage per the terms of the Buyer’s Representation Agreement. It helps to work with a real estate professional to determine the best approach for your specific circumstances.

2. “What should I do to get my house ready to list?”

In a nutshell, you should:

declutter
depersonalize
clean
repair
lightly decorate

3. “Do I have to fix everything that’s broken?”

It’s not always necessary, or even feasible, to fix everything that is broken. When working with an agent, he/she will help you to prioritize and determine what repairs will be best to focus on. Having a pre-listing inspection might be a smart idea as well, so that the Seller is aware of unseen issues that may be addressed early on or that might become a sticking point during negotiations with a Buyer and Buyer’s Agent.

4. “How long will it take for my home to sell?”

There are multiple factors that may influence the time it takes for a home to sell, and, yet, there’s not always a guarantee of a timeframe. Pricing, property marketing, the state of the market, and area and neighborhood trends are some of the factors that will always impact the number of days that a house is on the market. Working with a real estate professional can help a Seller to analyze how those factors will influence the sale of the property.

Commonly Asked Questions from Buyers

kischmachannette@gmail.com (Kischma Channette) — Tue, 03 Sep 2024 01:10:44 GMT

First-time homebuyers often have a slew of questions about the home buying process, obviously, because they may have little to no prior experience purchasing real estate. However, for some Buyers who are moving-up or downsizing, there may still be a few questions that need to be addressed since their last purchase.

Here are a few of the most commonly asked questions that I’ve received from Buyer- clients:

1. “What should I do first?”

Get pre-approved. I always suggest this as the first step because it sets a realistic expectation for one’s buying power. With a loan pre-approval, a Buyer will know 1.) if his/her credit score and credit history will qualify for a loan at that time and 2.) how much of a loan can be afforded based on income and debt and the potential interest rate 3.) and what their monthly mortgage payment and up-front costs will potentially be.

Read The Best First Steps to Take Before House-Hunting

2. “How much will I have to put down?”

This amount is going to be unique for each Buyer's situation. Typically, the out-of-pocket costs for Buyers before closing on a house may consist of money for:

earnest money
option fee
inspection report
appraisal
home warranty
down-payment
closing costs
paying down debt

The amount for each of these will vary, but a Buyer’s Agent will likely have references for inspection and home warranty companies and the lender will approximate the down-payment and closing costs based on the Buyer’s pre-approval.

3. “What does my credit score need to be?”

This will also vary depending on the type of loan or loan program that will best fit your circumstances. Some programs allow a minimum credit score of 580, but keep in mind that credit is only one component when getting a mortgage loan.

4. “Do I need to spend the money to get a property inspected?”

Yes. There is no question that a Buyer should get a property inspected before moving ahead with the purchase of it, otherwise, you won’t have a fuller-scope of what you’re buying.

5. “Do I need to sell my current house before putting in an offer on another house?”

While the answer to this question may depend on a Buyer’s ability to afford a new mortgage on a property while having an existing mortgage in place, the answer to this for most Buyers will be: kind of.

While the current house may not necessarily have to be sold, it will more than likely need to be put on the market before submitting an offer on another property. This will give the Seller some comfort in knowing that the Buyer is actively trying to sell their current home and not just wasting the Seller’s time.

Houston Real Estate News: June, 2024 Housing Market Snapshot

Tue, 03 Sep 2024 00:40:33 GMT

The Houston housing market experienced a cooldown with home sales below 2023 levels for the second month in a row. All housing segments saw a slowdown in sales in June.

Houston Real Estate Highlights in June

Single-family home sales declined 11.6 percent year-over-year;
Days on Market (DOM) for single-family homes went from 45 to 46 days;
Total property sales were down 13.6 percent with 9,133 units sold;
Total dollar volume declined 12.2 percent to $3.8 billion;
The single-family median price was statistically flat at $345,500;
The single-family average price was statistically flat at $432,090;
Single-family home months of inventory registered a 4.3-months supply, up from 3.0 months last June;
Townhome/condominium sales continued to decline, falling 19.9 percent, with the median price up 12.1 percent to $241,000 and the average price up 7.8 percent to $271,356.

“While there are more options available for homebuyers, affordability concerns continue to be a major hurdle,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “Many consumers are taking a wait-and-see approach due to elevated mortgage rates and higher prices, and some are ultimately choosing to rent.”

Adapted from Houston Association of Realtors (HAR)

Categories: Market Overview, Home Sales

3 Precautionary Stories of What NOT to Do When Selling Your House

Sat, 29 Jun 2024 18:00:00 GMT

Preparing your home to sell can be a daunting task that requires a multitude of smaller projects along the way. From decluttering to cleaning to staging, here are three stories from personal experience that will help to show you what not to do when selling your home.

True Story #1. Setting out for a full day of showings, my clients were excited to see one particular house because it checked all of the boxes for their wants and needs. It was the last showing on our list for the day, and it was the one they most looked forward to. They had high hopes that it would be “the one”.

Upon arrival, the wife raved about the study, she loved the size of the kitchen, and she was impressed by the ceiling height of the living room. She was also very observant about how many pets possibly lived in the home based on the numerous feeding bowls placed in several areas downstairs.

As I led the way upstairs, she stated that the Owners must have a cat because she felt the onset of an allergic reaction. We casually laughed it off, but as she reached the second floor, her laughter turned into a scream. Unbeknownst to me, a cat had darted out of one of the bedrooms and scampered past her into another room.

And that was it.

While I was processing what happened, my client scooped up her daughter and was already downstairs and heading out the door. She was not only allergic to cats, but both she and her daughter were afraid of them, too. We never finished the tour, and instead of that house being “the one”, it became “the one with the scary cat”.

Sellers, it’s fairly common to remain living in your home while it’s on the market, but that doesn’t mean that Buyers want to see how you live. The house should be presented in a way in which potential Buyers can see themselves living there.

TIP: Take the time to declutter, clean, and organize to prepare for showings and Open Houses.

DON’T:

leave dishes in the sink (whether dirty or clean)
leave trails or piles of clothes, shoes, books, or toys on the floor (which could be a safety hazard as Buyers are walking through)
leave all of the toiletries on bathroom counters (less clutter shows off more space)
have trinkets, gadgets, and miscellaneous items scattered around (which could make the space look messy)
leave paperwork in haphazard piles (or put them away)
let pets roam around the house during showing times (even if you know your pet is harmless, Buyers don’t)

True Story #2. First impressions are important, and when selling a home, that impression typically happens as soon as potential Buyers pull up to the curb. On this particular Saturday morning, my Buyer-clients and I arrived at the starting time for an Open House and immediately noticed that the curb appeal was not appealing. Amongst a street full of manicured lawns, it was obvious that this home that was up for sale had seen neither a lawn mower nor weed eater in a few weeks.

It didn’t get any better.

Our view of the unappealing lawn was prolonged for ten minutes because the Open House wasn’t open yet. The Sellers were running behind to leave, so those of us who arrived on time had to wait outside in the Houston heat until they left. Once we made it inside, we began to see the details that weren’t visible in the attractive listing photos.

While the kitchen was welcoming and the living room appeared cozy, they were overshadowed by the stickiness of the kitchen floor that could be heard with each step, the loose handrail that pulled away from the wall when my client touched it, the questionable wet stain in one bedroom, the backyard overrun by more weeds, and the (real) cobwebs that decorated the outdoor dartboard.

It was the worst house I’d ever shown to clients.

Sellers, it’s understandable that, sometimes, whether it’s due to financial, legal, or even time constraints, the circumstances under which a home is sold may not be favorable to getting it to look picture-perfect. However, at a minimum, it’s imperative that the home at least be presented with some degree of consideration of the fact that the goal is to get the house sold. You want potential Buyers to like what they see, so highlight the home’s features rather than detract from them.

TIP: Pay attention to small details that might have a bigger impact on Buyers

DON’T

let the lawn overgrow (at the very minimum, keep the front yard maintained)
ignore the appearance of the front door, garage door, and siding (if you can’t get it power washed, a bucket of soapy water and a sponge can work just as well)
have dark rooms where blinds and curtains are closed or light bulbs are burned out (this could affect the way Buyers envision how they could utilize the space)
forget to dust and clean windows, light fixtures, and surfaces (even if you don’t think it’s noticeable, it will be)
leave interior door frames, doorknobs, cabinet fronts, walls, and baseboards showing grime and dirt (it costs nothing to wipe them down)
let broken or loose items remain unfixed or unidentified (especially if they could pose a safety hazard to potential Buyers like a loose stair rail)
leave carpeted areas unvacuumed or hard-surface floors dirty or grimy (Buyers look at the floor, too)
force potential Buyers to wait outside for an Open House because of tardiness (this could turn away a potential Buyer before they even make it into the house)

Read The Seller’s Guide to Preparing for an Open House for more tips

True Story #3. During a weekend showing with a family of Buyer-clients, we spent a lot of time in one particular home that was fully decorated and quite attractive. The decor arrangement on the entryway table; the attractive family photos that lined a wall; the cuteness of the children’s bedrooms; the arrangement of the living room furniture…with every room we entered, my clients were admiring the homeowner’s contents of the space.

But this isn’t always a good thing.

Although my clients enjoyed the house and the way that it was decorated, we had to go back a second time so they could focus on viewing the home without being distracted by all of the homeowner’s belongings which was still a challenge the second time around.

Sellers, of course, want Buyers to feel something when they tour the home. Whether it’s a sense of comfort, awe, or inspiration, the feeling that Buyers get during a home tour can be a compelling factor in their decision to make an offer.

However, it’s important to have a balance where the home is tastefully staged in order to appeal to a variety of Buyers but not so overdone or overwhelming that the staging prevents most Buyers from seeing what the home has to offer.

TIP: When staging, take yourself out of the equation to depersonalize the home.

DON’T

leave family photos, accolades, awards, or collectibles on display (Buyers need to see themselves in your home)
leave magnets, artwork, menus, and calendars covering the refrigerator (visual clutter can be overwhelming)
ignore the fact that your personal taste and style in wallpaper, paint, or decorative elements may not be the most appealing to the average Buyer (you may love it, but Buyers may not)
overdo it when it comes to throw pillows and blankets on the furniture (scaled-back and streamlined is better)
make it difficult for Buyers to maneuver a space because of plant pots, oversized furniture, or exercise equipment (which can prevent a Buyer from viewing the space from different angles)

In order to maximize the potential of getting the full asking price on your home, remember that it will take some time and effort to prepare the home before listing it as well as before opening the doors for showings.

A Seller’s Guide to Preparing for an Open House

Sat, 22 Jun 2024 18:00:00 GMT

Follow this room-by-room checklist to leave Buyers and Open House guests wanting a second look.

Entire home

Declutter your home. You might have to rent a storage unit or ask a friend or family member if you can store items in their basement or garage.
Depersonalize your home. Displaying items like photos, awards, and framed certificates can make it difficult for homebuyers to envision themselves living in your home.
Switch out the art. If you have personal, controversial, or abstract art, consider changing it for pieces that appeal to a broader audience.
Eliminate signs of pets. Put away food and water bowls, toys, and beds.
Remove any unpleasant odors from your home. Use these tips to give your home a fresh and clean scent.
Replace any burned-out lightbulbs inside and outside of your home.
In warmer weather, open the windows right before the open house to let in fresh air.

Kitchen and dining room

Thoroughly clean the kitchen.
Put away all dishes from the sink and dishwasher.
Clear items such as toasters, blenders, dish racks, and utensils from countertops; you can replace these items with bowls of fruit or vases filled with flowers.
Clean and reorganize your drawers, cabinets, and pantry.
Remove magnets, coupons, calendars, and papers from the refrigerator.
Update older cabinets with a fresh coat of paint and hardware.
Clean trashcans. Move them somewhere else if possible.
Clear the dining room table, leaving only the centerpiece.
Remove extra chairs from the table.

Bathrooms

Clean toilets, sinks, and bathtubs.
Put out fresh soap and a new roll of toilet paper.
Recaulk the tub and sink, if needed.
Hang fresh towels.
Add a new shower curtain and rug, if necessary.
Pack up and remove any medications or products that you don’t use regularly.
Make sure all plumbing is working and isn’t clogged.
Remove stains from tile and grout.

Living room

Rearrange the furniture to make the room look larger and spacious.
Make sure there is enough room to walk around.
Remove any unnecessary furniture. Furniture should match; if any pieces don’t, remove them from the space.
Add small plants to give the room some liveliness.
Remove items from the coffee table, and move small items like remotes into a decorative box.
Add accent pillows or a colorful throw blankets to couches or chairs.
Open curtains and blinds to boost natural light and give the room an airy and spacious feel.
Remove rugs to showcase any hardwood floors.
Clean out the fireplace.

Bedrooms

Consider painting bedrooms a more neutral tone.
Remove clothing from bedroom closets to make them feel larger.
Keep jewelry and expensive items in a safe place.
Use gender-neutral colors in all bedrooms.
Make beds look inviting by adding a headboard, accent pillows, and a throw blanket in neutral colors like gray or brown.
Move daily necessities into bins, drawers, or closets.
If your bedroom is small, make sure the bed is full-size or smaller to prevent the room from feeling cramped. You can also use scaled furniture to fit the space better than large furniture.
Clean thoroughly.

Exterior

Consider upgrading your front door with a fresh coat of paint.
Stage your porch, patio, or deck with furniture and plants.
Place a simple decorative welcome mat by the front door.
Mow the lawn.
Trim back trees, shrubs, and plants.
Clean up your landscaping, and remove any leaves or branches from your yard.
Power wash the siding, gutters, driveway, sidewalk, front porch, and windows.
Replace old light fixtures.
Fix any torn window screens.
Clean up after your pet.
Upgrade your mailbox to a more modern or sophisticated design.
Store away items like toys and sporting equipment.
Upgrade your house numbers.

from American Lifestyle Magazine (Get your free monthly digital magazine.)

Houston Real Estate News: May, 2024 Housing Market Snapshot

Sun, 16 Jun 2024 18:36:26 GMT

The Houston real estate market navigated a unique set of challenges in May. While severe weather and resulting power outages may have caused a delay in some closings, the market continued to see strong activity with expanding inventory and persistent consumer demand. This unwavering demand fueled record-breaking home prices in the Greater Houston area.

According to the Houston Association of Realtors’ (HAR) May 2024 Market Update:

single-family home sales across the Greater Houston area declined 1.5%
8,538 units sold on the Houston MLS in May, 2024 compared to 8,664 units in May of last year and 7,926 units during the previous month of April, 2024
months supply of homes climbed from 2.7 to 4.0
home sales in the luxury segment ($1 million+), which represents just 4.8 percent of all homes on the market, increased 9.6%
the average price of a single-family home reached an all-time high of $443,970 in May, topping the previous record in May 2022 when it reached $438,350.
the average home price increased 3.6 year-over-year
Days on Market for single-family homes decreased from 49 to 45 days

“The Houston market has demonstrated its adaptability yet again,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “While the weather disruptions may have impacted some sales, there continued to be strong activity with a rise in available listings and persistent buyer interest. We are beginning to see a more balanced market pace, benefiting both buyers with more options and sellers with sustained demand.”

Adapted from Houston Association of Realtors (HAR)

Categories: Market Overview, Home Sales

The Best First Step to Take Before House-Hunting

Tue, 04 Jun 2024 13:32:38 GMT

When working with clients at the start of their home buying process, especially those with little to no experience in buying real estate, the first recommendation that I make is to get a pre-approval. Getting a pre-approval allows the lender to review a Buyer’s income, assets, debts, and credit in order to determine an affordable loan amount and mortgage payment. Having this information will not only provide a Buyer with knowledge about the financial components of a home loan, but it will also position them with a realistic understanding of their affordability and a competitive advantage when it comes time to make an offer on a home.

How to get mortgage pre-approval:

Shop around.

It’s always a good idea to shop around for a loan. Consider applying for a loan through your bank, credit union, referrals from your trusted real estate agent, or even via online sites that can shop multiple lenders at one time. Applying with three lenders will likely be enough, but I would not suggest applying with more than five. Don’t be too concerned that applying with multiple lenders will affect your credit score; if done within a 15-30 day period, then those credit pulls will be considered as one inquiry.

While the interest rate and APR being offered by the lending establishment are important, you should also inquire about loan programs that may be a good fit for you based on the desired location of your home, your occupation, or even your income.

Compare the numbers.

After you have applied with several lenders, they will provide you with a loan estimate or worksheet. Compare these loan estimates to determine what will work best for your current and, possibly, future financial situation. When comparing, look at the:

interest rate
lender fees
loan type
minimum down payment required
mortgage insurance, if applicable
monthly principal and interest estimate
total monthly mortgage payment estimate
closing costs

There are other factors that may affect your mortgage payment, but these are often property-specific. The lender will be able to refine your loan estimate once you’ve identified a home, and it’s always important to ask questions in order to understand the costs associated with a loan. This is, after all, your hard-earned money and one of the largest purchases you will likely make!

Once you’ve determined the loan that is best suited for you, and you know the price point of what you can afford, then you can prepare to begin house-hunting!

Should You Get Pre-Qualified or Pre-Approved?

Tue, 04 Jun 2024 13:32:37 GMT

There are benefits to getting either a pre-qualification or a pre-approval for a mortgage loan although one holds more weight than the other when it comes time to seriously begin the home-purchase process.

Getting a Pre-Qualification

Getting pre-qualified means that a lender informally determines your ability to obtain a mortgage. With a pre-qualification, you will provide the lender with an overview of your finances including your income, debts, and assets. A lender may or may not do a credit inquiry, but with the information that you provide, they will give you an estimation of your eligibility for a home loan.

Although it is not as in-depth as a pre-approval, the pre-qualification may help you to determine your buying potential so that when you are serious and ready to begin the purchasing process, you’ll know what to expect when getting a pre-approval.

Getting a Pre-Approval

A pre-approval is a more formal and concrete step to take in the home-purchasing process. When getting a pre-approval, you will submit documents to the lender to confirm your income, assets, and debts. The lender will also do a credit inquiry and use all of this information to determine your loan eligibility and affordability.

Although a mortgage pre-approval is not a guarantee that you will get the loan, it does hold more weight than a pre-qualification because the documentation that you provide to the lender is closely analyzed and verified. Once you obtain a pre-approval for a mortgage, the lender will provide you with a pre-approval letter stating the amount that you are eligible to borrow. This letter is typically valid for 60 days, and will be an advantage when you begin looking for homes with your real estate professional and when you place an offer on a home.

Having a pre-approval letter is something that I always advise my clients to obtain at the beginning of the home-purchase process. This allows all parties involved - you, your agent, a Listing Agent, and a Seller - to know that you are a serious Buyer with validated purchasing ability.

Be prepared to provide the following documents when getting a mortgage pre-approval:

pay check stubs from at least the previous 30 days
all banking statements from at least the previous 60 days
documentation for additional income
documentation of monthly expenses and credit accounts
W-2s or 1099s and tax returns for the most recent two years
valid photo ID
social security card

One of the most important first steps to take when purchasing a home is confirming how much home you’ll be able to afford. While getting pre-qualified for a home loan is helpful, a pre-approval is going to be a stronger determinant of your buying power and eligibility.

Houston Real Estate News: April, 2024 Housing Market Snapshot

Tue, 04 Jun 2024 13:32:35 GMT

Warmer weather and a shift in market dynamics brought a welcome change to the Houston housing market in April. While the spring homebuying season initially saw a sluggish start, home sales rebounded and inventory expanded to pre-pandemic levels, offering opportunities for buyers and sellers.

According to the Houston Association of Realtors’ (HAR) April 2024 Market Update:

single-family home sales across the Greater Houston area rose 9.2 percent
7,926 units sold on the Houston MLS in April, 2924 compared to 7,256 units in April 2023
months supply of homes climbed from 2.6 to 3.7 (the highest since a 3.8 months supply in October 2019)
all housing segments saw an increase in sales in April
home sales in the luxury segment ($1 million+), which represents just 4.8 percent of all homes on the market, surged 33.8 percent
the average price of a single-family home rose 4.6 percent to $437,198 (the second highest price behind May, 2022 when it reached a record $438,350)
the median price increased 3.0 percent to $340,000
Days on Market for single-family homes decreased from 56 to 49 days

“The spring homebuying season seems to be blossoming later than usual this year,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “While elevated interest rates continue to be a factor, the rebound in April home sales shows buyers are adapting to the new market realities, and sellers are finding opportunities as inventory levels rise.”

Adapted from Houston Association of Realtors (HAR)