Buyers contracted over 9,172 listings during the month, up 5.8% year over year and the highest level of pending-home sales in 4 years according to a new HAR report. Real Estate Expert, Cliff Freeman says despite interest rates people are still buying. “What’s happening is, life doesn’t wait for the FED. Right? People are getting married, they’re having kids, they’re moving. With over 5 months of inventory- they now have choices and flexibility that they didn’t have during the pandemic frenzy.” He said.
The report showed the luxury segment was strongest, with just over 10 percent shifting Houston’s average home price to almost 450K. Freeman says buyers catch a break in Texas. “If someone moves from California to Texas for example, where they have a 3 bedroom/2 bath/1700 square foot house- where they sell for 1.2 million. Then come to Houston (where it’s up) but it’s still much less than it was in LA or wherever they’re coming from.” He said. Freeman says the luxury market is on fire and that means wealthier buyers are moving here aggressively and that’s why you see the shift in the average home pricing.
Freeman points to a thriving economy in Texas. “That migration we’re seeing is going to continue. People are still voting with their feet. Space X just launched the biggest IPO in the history of the stock market. Guess where they’re headquartered? Right here in Texas. People are coming and they’re not going to stop if the crazies are doing the things they’re doing to drive people out.” Freeman said.
The real estate expert also points to affordability and explains just because the luxury segment of the market has seen an increase, it doesn’t mean all housing price points are equally steep. “The median home price held at 340K. This has to do with the number of luxury sales, which has increased so much it is having an impact on the average, but not on the median. The middle of the market isn’t experiencing crazy runaway inflation; it gives all buyers a fair shot.” Freeman said.