May 2020 Housing Report
In April, the number of Active Listings dropped so low, it was like playing a game of Limbo. “How low can you go”? I believed the number could not go any lower. Well, I was wrong. In May, the Actives dropped even further to just (23). That’s incredibly good news! Even better? There are now (12) homes in Pending Status. What could possibly be any better? Well, impressively there are (10) homes that Sold and all but (2) are Resales. The Buying activity was so strong, several of the homes that Sold were built nearly 30-years ago. The older homes are normally a challenge, so this was rewarding to see. In short, a remarkably good month for Weston Lakes.
This symbol you see is the mathematical sign for “not equal.” And, that is the visual for the results for Fulbrook. Unfortunately, the good news for Zip Code 77441 was not shared equally. Here, in Fulbrook, Active inventory rose again to total of (9). That would not be a major concern if it were not for the length of time that most of the higher priced homes have already been on the market. These are extraordinary homes, so we just need a few extraordinary Buyers! There was a bit of good news though. There are now (2) homes in Pending. One is an older home in Fulbrook Creeks and the other a very nice home in the Custom Section. It is rewarding anytime a home receives a Contract, even a bit more satisfying when one is a higher-end home Listed for over $800,000; and at over $200 per square foot.
Fulbrook On Fulshear Creek:
The results for May were analogous to the proverbial glass being half empty, or the preferred half full. First, the half empty results. Active inventory rose again to a total of (44). That’s a lot for this community. However, the rest of the results are all positive. Of the (44) Active, only (6) are Resales. There is a total of (11) homes in Pending, and (7) were Resales. That is nearly double the number of the New Homes! There were only (3) homes that Sold. Not so good, and only (1) was a Resale. However, that home Sold at an impressive $617,500; and at a rewarding $140 per square foot. So, in May the market was very favorable to the Resales and demonstrates that they are “holding their own” against the New. And, that is not easy to do!
Cross Creek Ranch:
This is not only one of the finest communities in the greater Houston area, it also ranks as one of the best in the nation. However, it is also still a “New Home” community and that means there is always a battle between the New Homes and the Resales. The New Homes have the advantage though, because most prefer New over Older. This fact has been evident every month and May was no different. Unfortunately, in May though, the Resales did not fair quite as well as they have in recent months. Here are the results. There was a total of (107) Active homes on the market, of which, 42 were Resales. There were (51) Listings in Pending, yet only (16) were Resales. And, of the (28) homes that Sold, just (9) were Resales. That means the Resales comprised 41% of the Actives, but just 31% in Pending and only 32% of those that Sold. As insight, this is a complete turnaround from April where the Resales outperformed the New. So, it’s a battle that continues. I’m hoping for a stronger month for the Resales in June though.
Okay, where did all the Active Listings go? Well, it appears that they are “hiding” in Pending Status. Currently, there are no Listings, nada, zilch that are showing as Active. However, there are (3) homes in Pending, and that’s incredible to have every home in Pending Status. Somehow, I think there is a mistake though. So, we’ll see what next month reveals. Regardless, it was a very good to end May with (3) homes all in the higher-end price range and each priced more than $158 per square foot.
At the beginning of the year, I had some concerns about rising inventory and a lack of activity. That changed for the positive in April. In May, the results were so good, they should have called the fire department because this community was on “fire”! Active inventory had plummeted in April to just (19). Yet, in May the number dropped to just (8). The lowest since the community opened! The reason? Buyers rushed in, and it looks like they bought most everything that was standing. As a result, there is now a very impressive (26) homes in Pending. The number of Sold’s also increased to (9). However, the average Sales Price was $240,343 and just $116.89 per square foot. So, Polo Ranch does remarkably well in the lower price range, but has not yet seen the demand for their higher-end homes.
As mentioned in my opening video, I am thrilled with the tremendous amount of Activity. Personally, for our Clients, I’m ecstatic. As insight, in May, I now have just (8) homes Listed For Sale; which is extremely low. The reason? Buyers in May liked our Listings and (12) are now in Pending Status. We also Sold (13) more. The saying; “don’t look a gift horse in the mouth” may be apropos. However, I still want to know why the market is so good.
At the moment, Buyer are continuing to be busy buying, and that is very rewarding to witness. And, as this report indicated, the number of Active homes on the Market is actually declining. Additionally, both Listings in Pending and the number of homes that are Closing are up. So, every indicator would reveal that we are in a very healthy market. Then, I listen to the news, see what is happening to the stock market and then I put on a mask to go shopping. Thus, the contradiction and my frustration with not being able to answer the definitive question “why”. Yet, just like with a Rubix Cube, if you try hard enough, it can be solved.
Patience is a virtue, so I’ll try to be, while awaiting to see what happens in the next few months. I’ll do so filled with optimism, because I know we live in one of the best places on earth and that’s why people will always want to move here.