The good news from August carried over again to September. Active inventory remained at (3). As insight, that is a third of what it was just 2-months ago! So, if this trend continues, Buyers are going to have a hard time even finding a home here For Sale. There are (5) Listings in Pending Status, which was down from last month. Yet, that is only because they converted to the Sold’s category; which ended with (3). Sales prices were even more impressive. The Listings in Pending averaged over $1 million and those that Sold averaged nearly $200 per square foot. Remarkable!
Fulbrook On Fulshear Creek:
It was a good month for both the Resale homes and the New. Active inventory remained low at (32), Pending ended September with (10) and there was a rewarding (10) homes that Sold, which may be a record. They had been averaging less than (5). Behind the number shows that the Resales were very competitive. They comprised 20% of both the Actives and also 20% of the Listings in Pending Status, yet 30% of the homes that Sold were Resales. So, they “held their own”, which is substantially better than preceding months. Even better? They averaged $484,167 and, did so an impressive $148 per square foot. This was refreshing results to see.
Cross Creek Ranch:
Results were outstanding for this 3,000-acre community. Active inventory continued its downward trend from (101) in July, to (85) in August, and only (55) in September. That is at least a 5-year low. Amazingly, there are (66) Listings in Pending Status. That is more than the total of the Actives! The number of homes that Sold declined slightly to (36). That is mostly due to the fact that a significant number are New Homes that are still under construction and waiting to Close. Even better news for the Resales? There are only (12) Actives. Additionally, there are (23) in Pending and (18) that Sold; which is 50% of the total. So, the Resales actually outperformed the New Homes. Yea!
The number of Active Inventory dropped to just (14) in August and more than doubled in September to (35). Normally, this would be quite a concern. However, it was due to the developer transitioning from completing their first Sections and then opening their newest Section. This also affected the number of Listings in Pending Status, which rose to a total of (20), or an increase of 20%. There were no homes that Sold in August, yet that turned around in September with (3). Not a lot, yet more than none! Additionally, in the past, almost all the homes built and Sold were in the lower to mid’s $200’s. So, it was rewarding to witness that in September, they are beginning to sell homes in the $300,000+ price range.
This is a very unusual market. It meets the definition of a “Sellers Market” with heavy buying activity, more demand than supply and rising prices. However, what makes it unusual is that it is also an economically gratifying time for Buyers. That is largely due to the “artificially low” interest rates that allow Buyers to purchase a lot more home for the same payment. So, the market is in “balance” with the rarity of a highly active market that is rewarding to both Buyers and Sellers.
Just as with all good news (or bad news) nothing lasts for too long. Well, that adage is apropos. Sellers are experiencing one of the best real estate markets in over a decade. So, not a better time to be one. Buyers should be wary too. The interest rates are part of a government stimulus package due to Covid. So, this extraordinary benefit may be short-lived. So, for both Buyers and Sellers, beware…