The real estate market has improved substantially pretty much everywhere across the country in the last year. This has been especially true here in Houston. The Houston market has been on fire. This has led some speculation that a “bubble” may be forming that could “burst” at any moment. Is this true? Is the local market in danger of “bursting”? In a short answer – No. Just like everywhere else in the country, the pent up demand from previous years has spawned the current market. Most experts agree that the market will return to normal before the end of the year. That doesn’t mean that all things are rosy. Appraisals are still an ongoing issue due to the recent changes made to the appraisal process and the rapidly escalating prices. Another factor to remember is that the historically rock-bottom interest rates that we have seen over the last few years are becoming history.
Click here to read a great article from “The Houston Press” about this very subject.
So what does all of this mean to buyers and sellers in the long run?
For buyers, it means that you need to be quick and you need to be ready. You must have your mortgage pre-approved and ready to go. You must be ready to act quickly if a home comes up that meets your needs, and be prepared to pay full price or maybe even over that for a properly priced home. You also must be prepared to compromise, especially in the more desirable and popular areas.
For sellers, it means that you need to price your home correctly, and be prepared for it to sell fairly quickly. Sellers also must take into account that the rising prices and interest rates affect what you will pay for your next home as well, and that you also must be prepared to move quickly once you find a home that meets your needs. In other words, you are now a buyer in a hot market.
Whether buying or selling (or both), you need a professional to guide you through the process from beginning to end. That would be me.