I’ve been a full-time Realtor for over 20 years, and I’ve seen the Houston market go up and go down like a roller-coaster many times over the years. The last three years have been down, down, down, down, up, down.
It looks like we have finally hit the bottom, folks, and we are on the way back up!
Buyer traffic is way up, more and more properties are going sale pending, and more and more agents are reporting multiple offers coming in on their property listings (including myself).
There is also a lot of good economic news coming in. The unemployment rate is falling, new unemployment insurance claims are falling, rental rates are rising, home values are creeping up, consumer confidence is up, foreclosures are down, and mortgage interest rates are still historically low and stable. All real estate is local, of course, so this all may not be true everywhere, but even Las Vegas (one of the worse hit areas in the country) is seeing an upswing in the real estate market.
For buyers, this means that the longer that you wait to “get off of the fence”, the more that your new home is going to cost.
For sellers, this means that even though you will get less for your home than you would have a few years ago, you will make up for that loss with the cost of your new home being lower as well.
But the big thing that most buyers and sellers seem to forget is mortgage interest rates. The home affordability index is lower than it has been in decades!
Another trend that is starting to show up is that the number of homes available on the market for sale is starting to fall. Historically, a balanced market is six months of inventory. This means that it is neither a buyers (more sellers than buyers) or a sellers (more buyers than sellers) market. The Houston market is heading towards ‘. This means one thing – prices will also rise accordingly. It is also highly possible that because of rising gasoline costs, that values of inner city properties will rise even faster.
So what does all of these mean? That if you are buyer or a seller, and have been considering buyer or selling a home in Houston, then now is probably the best time to make a move.