6507 Pinewood Heights Drive Spring TX 77389
April 8, 2021
24723 E Burnaby Circle Spring TX 77373
April 27, 2021
What’s going on with the Spring Texas Real Estate market? Is it up? Is it down? Is this a good time to buy? Is it a good time to sell? We are taking a deep look into what’s going on in the real estate market in Spring Texas.
Real estate in every state is experiencing a decrease in listing inventory. In some states listing inventory is only down 10% over last year and in other states listing inventory is down 69%
We are also experiencing decreased listing inventory in our local market. In the Spring Texas zip codes of 77386, 77388, and 77389 listing inventory is down by etiher 51% or 52% over 2020. An over 50% decrease in listing inventory translates into significantly fewer homes on the market in 2021. With fewer homes for sale and high buyer demand, homes are being sold quickly with the majority of them going into contract within a few days.
Months of inventory is calculated by dividing active listings by past home sales volume. It identifies the length of time it would take for all homes currently on the market to be sold. A balanced market (neither buyers not sellers have an upper hand on negotiations) is when there is six months of inventory. More than six months of inventory is considered a buyers market. We experienced a buyers market in 2007 – 2009. A sellers market is when the months of inventory is less than six months.
Months of inventory for the Spring TX zip codes of 77386, 77388, and 77379 range from .1 to 2.4 months of inventory. These figures are for homes listed at $1.5 million or less. . Homes in the below $200,000 price range have less than .1 months of inventory. We are NOT in a sellers market. We are in a SUPER sellers market.
Year over year sales activity is high. Below are the year over year sales activity for three of the Spring TX zip codes.
- 77386 – YOY SALES – 153 home sales in 2021 vs 135 home sales in 2020. Home sales are 13% higher in 2021 vs 2020.
- 77388 – YOY SALES – 68 homes sales in 2021 vs 62 home sales in 2020. Home sales are 9.6% higher in 2021. In some of these price ranges there’s only 1 home active on the market.
- 77379 – YOY SALES – 115 homes sales in 2021 vs 98 home sales in 2020. Home sales are 17 higher in 2021.
What’s the cause of the low housing inventory?
Low housing inventory is being caused by the limited new construction options available in Spring Texas and sellers apprehension about putting their house on the market because of the COVID pandemic. New construction helps to balance supply and demand and keeps home appreciation in check and not skyrocketing. Although we still have lots of land to build on in the area, financing and labor shortages have caused fewer new homes to be built. The disruption in the supply chain due to the pandemic has also created delays in the completion of new home construction in Spring TX.
High demand and low inventory has created bidding wars and escalating home prices that the real estate industry has never seen before. High demand is being driven by ridiculously low interest rates and people wanting more space in their homes as more families work from home and do virtual learning. In addition high demand is being experienced by people moving from pricey cities (Los Angeles and San Franciso CA) to the more affordable area of Spring Texas.
Median sales SP/LP ratios (50% of the home sales have a lower sales price to list price ratio and 50% of the home sales have a higher sales price to list price ratio):
- zip code 77386 – MEDIAN SP/LP is 100% . The highest sales price to list price for the month of March 2021 was 114%. The Spring Texas home sold for nearly $21k over its list price.
- zip code 77388 – MEDIAN SP/LP is 100%. The highest sales price to list price for the month was 108%. The buyer paid nearly $21k over the home’s list price
- zip code 77379 – MEDIAN SP/LP is 100%. The highest sales price to list price for the month was 106%. The buyer paid nearly $35k over the home’s list price.
In the super sellers market that we are experiencing buyers are paying over list to win the bidding wars.
So if you have questions about buying or selling in Spring or you are thinking about moving to Spring and you want to know what it’s really like to live here? Give me a call or shoot me a text, my number is 281.804.8626.
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