THE DATA

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Our internal numbers in 2022 & 2023 compared:

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• Average Time on the Market: 30 days | 33 days
  - Up by 10%
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• New Yard Sign Installations: 484 | 447
  - Down by 7.6%

• Yard Sign Removals: 534 | 486
  - Down by 9%

• Additional Services: 259 | 231
  - Down by 11%

• Rebills  45 | 107
  - Up by 58%

_{*Includes adjustment for larger client base}

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WHAT IT MEANS

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• Rebills continues to show a HUGE increase! More and more homes are having their listing contracts renewed or extended by the seller. This shows the market is not moving as fast and sellers continue to struggle within initial listing periods.
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• There is not a huge change in the Average Time on the Market. The time of year can impact the market, meaning the early Spring and Summer market is typically more active than late fall and winter. It's only a moderate shift that we see, which we saw last month, but does potentially signify some slowing down of what had been a hot seller's market.
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• A slight decrease in New Yard Sign Installations shows fewer homes being sold or closed. Fewer pending/under contract sales could mean less need for yard signs on those homes which could also imply slower sales.
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• However, we see a little bit of a significant decrease in Yard Sign Removals. As we know, there is a lower sales activity which could be due to reduced demand. More total listings on the market would lead to a lower share of signs being removed for closed sales.
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• We see another decrease in the Additional Services. This dip could indicate a shift from an extremely competitive sellers' market to more of a balanced market with less need for buyers to go above-and-beyond to win a bid.

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GENERAL ANALYSIS

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The data on yard sign installations, removals, average time on market, rebills, and additional services provides interesting insights into the current state of the Houston real estate market.

Taken together, these metrics demonstrate a significant cool-down in Houston's housing market compared to the frenzy of 2021. While prices remain high, buyers have more selection and less competition. Sellers still maintain an advantage in this sellers' market but cannot expect homes to fly off the shelf like last year. The market appears to be returning to more balanced conditions.

With Winter quickly approaching, the housing market activity is already cooling due to eye-popping home prices and interest rates - may be on the verge of a deep freeze according to National Association of Realtors (NAR) .

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THE ROAD AHEAD: WHERE THE HOUSING MARKET IS HEADED FOR THE REST OF 2023

As we enter the final months of 2023, expectations for the Houston housing market are stabilization and slower growth after the breakneck pace of 2021-2022.

Inventory levels are projected to continue increasing, providing buyers with more options and less intense competition for homes. Seller dominance will begin to decline as supply catches up with demand. Home price appreciation will moderate, slowing to single-digit increases by the end of 2023 compared to double-digit gains in the past two years. Mortgage rates may fluctuate but remain above 5% through year's end.

Overall, Houston's housing market appears headed for a cool-down phase, transitioning from an overheated sellers' market to a more balanced environment. While still competitive, buyers will regain some leverage at the negotiating table. For sellers, it will take more effort to successfully move properties. The frenzied conditions of the pandemic boom years are easing as the market normalizes.

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YOUR THOUGHTS?

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What are your thoughts on the market? What else would you like to know? Shoot us your thoughts. We plan on sending out these unique market analysis reports regularly to help our agents better grasp what's been going on and more importantly what to expect.

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