By Joel Eronko

There are national headlines everywhere that refer to a housing bubble, high interest rates, a shift in the market...they go on and on. What's really important for everyone is to remember that real estate is LOCAL. Our market has seen some decreases, but by no means are we in a bubble. In fact, there is no real estate bubble. There is a supply vs demand issue. Even if that changes, where there is more inventory, we have a long, long way to go before our market shifts into negative equity or opportunities.

May sales in some price categories have responded to the interest rates, which have bobbled up a little bit, and then down. Today they're back up again. Interestingly enough, the luxury market is the fastest growing segment in Houston and Austin right now. Yesterday the number of mortgage applications fell to a 22 year low. That means less Buyers are applying for loans. With that being the case, we could use a little reality in our market. With over 57% of all sales last month being over asking price, we have a long way to go before we are balanced.

We may start seeing listings stay on the market a little longer than a week, a day, even hours. Being on top of trends and industry changes is important so that Nicholas Joel Realty Group remain the experts for our Sellers and help them understand reality. Even in our crazy market, houses that went active way overpriced have been rejected by Buyers. It has been proven that there is a threshold of acceptance that Buyers will tolerate, even with the inventory as low as it has been. Helping our Sellers be prepared for the softening on the front end will help ease possible uncomfortable issues on the back end.

With less Buyers in the market that means that the competition per home goes way down and our Buyers won't have to compete against the incredible myriad of crazy offers. I feel completely confident and agree with industry experts that although activity may wain a bit, our pricing will not slide with it. Will we continue to see the double digit increases month over month? Probably not. But, that does not make it a "bad market".

If you or someone you know is looking to buy or sell, we’re here to help! 

Nicholas Joel Realty Group
Proudly partnering with Jane Byrd Properties International, we’re your trusted Houston Heights real estate experts. Joel Eronko, Realtor®