How's the Market in Steiner Ranch
We might be seeing signs that the market is bottoming out. The stats for the Steiner Ranch real estate market can be found in text and chart formats below the video.
If you are looking to buy or sell a home in Steiner Ranch, contact me via email or at 512-650-7300. Previous editions of How’s the Market in Steiner Ranch are also available. If you prefer to read instead of watch, here are the chart and transcript.
The market may be showing signs of bottoming out.
In January, 12 resale homes closed in Steiner Ranch which was up 100% from January 2022. Don’t get too excited about that number – the inventory back then was almost non-existent so there weren’t many homes to sell. The 100% increase is more about the low inventory at that time as compared to lots of buyers now. The median price in January decreased just 9% to $739,950. The average price of a home decreased 14% to $817,408. The average price per square foot decreased by 5% to $275.51. With such a small data set let’s look at the six month comparison to get a better picture of the market. The number of resale homes sold during the past six months is 74, down 34% from this same time frame the year prior. The median price of a home has decreased 2.3% to $790,000. The average price decreased by 0.6% to $903,510. The average price per square foot increased 3% to $292.57.
Even looking at six months, the number of homes sold is small so the pricing data can get skewed. Recently, the entry and mid-price homes have been selling better than homes over $1 million. The days on market for many of the higher priced homes is sitting in the 100 to 200 day range. I would expect the true median price a little higher – perhaps in the low $800s.
The number of available resale homes at the end of January was 26, up 333% from last January. The number of new homes put on the market in January was just 12, up 9% from the 11 last January. Across Steiner, the January sales ranged from a low of $473,000 to a high of $1,500,000. The average sales price to list price ratio was 96.2% and for homes that closed in January, the average days on market was 64 down from 68 last January. Let me explain that stat. Only six homes sold last January and two were from Opendoor which, on average, take a long time to sell. So the 68 days last year was an aberration of the numbers, but the 64 from this year is what I would expect.
It looks like we may be bottoming out in the market. If not, then the decline of the past seven months is at least taking a breather. Interest rates have come down about 1% from their peak in the fall and prices have continued to come down as well. This is bringing some more buyers back into the market. It doesn’t necessarily mean they are writing contracts yet, but we are seeing some more activity. The next few weeks will likely set the tone for the spring and give us some clues as to market direction. One thing I do expect is that the number o homes offered for sale will continue to be under historical norms. Over 80% of homes in Texas with a mortgage have a rate in the 4%s or lower. In fact, many are in the 2s and 3s. That is going to stop some people from moving. Known as the ‘lock-in’ effect, many folks who don’t have a compelling reason to move will decide against moving because they don’t want to change from a 3% to 6% interest rate and the accompanying increase in monthly payment.
If you have any real estate related questions, please don’t hesitate to call me at 512-650-7300 or email me at [email protected]. Thanks for reading “How’s The Market in Steiner Ranch.”
Statistics based upon information from ACTRIS for the periods cited.