Friday, November 18, 2016

The Latest Update on Our Real Estate Market

We’ve got two different market updates for you today. One is for the national market; the other is for the Corpus Christi market.

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We’ve got an update for you today about both the local and national real estate market. Jonathan Smoke, Chief Economist at, says:

 "Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slower sales season, and pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low.”

While we’ve been enjoying historically low interest rates for quite some time, Freddie Mac, Fannie Mae, MBA, and the NAR are all predicting that interest rates will rise in the next year. If you're thinking about buying, it’s important to lock in those rates while you can. When rates go up, so does your monthly payment. If you’re a seller, buyers may no longer qualify to buy your home when rates go up. 

According to First American Chief Economist Mark Fleming:

“Extremely limited supply is stopping the market from reaching its full potential, counteracting positive increases in market fundamentals, such as employment and wages.”

Due to lack of inventory and continued steady foot traffic, the measure of months of inventory is low. With consistent foot traffic, that gives us a pretty good outlook for the next year.

Anything under $200,000 is moving quickly in Corpus Christi.

Now let’s talk about the Corpus Christi market itself. According to the Corpus Christi Housing Report, here’s what happened in our market in the last year:

  • The median home price went up 7% to $190,000.
  • Active listings are up 21.2%.
  • The average days on market is up by 11 to give us an average of 66 days on market. 
  • Inventory is slightly up, from 4.7 months to 5.4 months.
  • There are currently 389 homes under contract, giving us a 24.9% pending ratio.
  • The $150,000 to $200,000 price range has a relatively large number of pending sales.
  • The $200,000 to $250,000 price range has a relatively large inventory of 241 listings.
  • Today’s absorption rate is 4.2.

As you can see, anything under $200,000 is moving extremely well. As you increase in price, absorption rate goes up as well. The absorption rate shows what the supply is compared to the demand.

If you have any questions for us or want a more in-depth local market update, give us a call or send us an email. We would be glad to send you a copy of our Corpus Christi Market Watch Report for free- just let us know. We look forward to hearing from you.