Houston home sales fell 11.5 percent, compared to last year, with houses averaging 60 days on the market. Real Estate Expert, Kenya Burrell-Van Wormer says the median price slipped slightly at 1.5 percent.” So, I describe what we’re seeing as a slowdown driven primarily by affordability and borrowing costs. It not a collapse in the Houston housing market by any means.” She said.
With mortgage rates are 6.95 percent higher rates can add up to over a 30-year mortgage as buyers look at the monthly bottom line. For example, if the difference is $60/month over 30 years that’s $21,600.00- in some cases, that would price out a family.
“The new wrinkle right now is that the August sales numbers are already showing that buyers are pulling back and those numbers pre-date where we are today with mortgage rates. If our borrowing costs stay at this level- then we’re talking about an affordability headwind issue.” She said.
Burrell-Van Wormer says housing doesn’t operate in a vacuum. Looking at the geopolitical events such as the war in Iran -can eventually show up in energy prices, inflation, expectations, and our financial markets- affecting borrowing costs.
Houston buyers have plenty of homes to choose from with 39,000 single family homes listed with just over 5 months of inventory. What’s important she says is prices aren’t collapsing it’s just a slower market.