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May 2023 Real Estate Trends in The Woodlands

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May 2023 Real Estate Trends in The Woodlands

Historically, the month of May is one of the busiest of the year for real estate activity. While activity is certainly picking up, the main issue still at play is lack of listings. Currently, there are 151 single family residences listed for sale in The Woodlands.

Let’s not forget there are 29,000 SFR within The Woodlands development. There is simply not enough inventory on the market to establish equilibrium. A healthy market would consist of approximately 400-500 SFR on the market at any given time as a percentage of overall residences within The Woodlands.

The driver here, of course, is interest rates. The vast majority of homeowners who could refinance/purchase when rates were sub 4% did so. As rates stabilize, the move-up buyer and seller will emerge and contribute more to our local market.

So, what’s actually happening in the market? A couple of items of interest. First, properly priced homes featuring expert photography and professional marketing are commanding sincere attention and driving multiple offers. Secondly, homes that are missing one or more of those components can remain on the market far longer than any owner would like to see. Proper pricing and marketing strategies are of paramount importance based on our current market trends.

Also of note, of the communities I closely follow, I am not seeing above average discounts being given by sellers. Moreover, many properties are closing at or above list price even in this interest rate environment. This tells me that the consumer will act in accordance with what it takes to secure the home that feels right to them and meets their needs. Don’t believe the national headline hype. Our market is strong, we simply would enjoy a bit more inventory on the ground.