Mild Cooling in Houston’s Housing Market
Has the sizzle of summer pasted?
Here are the latest statistics comparing –
July 2015 to July 2016 (for single family homes)
- Average Sales Price: from $293,772 to $292,316, down 0.5%
- Active listings (Homes available for sale): Up 12%
- Number of homes under contract: up 11.4%
- Number of home sales (closed): down 8.8%
Houston’s housing market experienced it first decline in sales of homes in six months in July. The largest drops were in the lower and higher end of the market. The lower end homes are becoming harder to find, with tremendous competition from first time homebuyers and investors. Prices for homes under $200,000 sell very quickly. While on the high end of the market, over $500,000, homes sales have slowed significantly, and prices have declined about 5% from one year ago.
Inventory of homes for sale has increased 11.4%. This is more favorable to the buyer who, over the past several years, have had to compete aggressively for fewer homes. There is a lag in seller’s price expectation. Eventually though, they realize current market forces control the value of their home.
Well, here we are again today. Janet Yellen says economic indicators are improving, hence raising the chance the Federal Reserve will increase borrowing rates – soon – umm, ok, maybe! So, for now, the good news is mortgage rates are a very low 3.2% to 3.5%. If you or someone you know is thinking about buying a home, call me. I will put them in touch with one of my trusted lenders who can help them get started. By talking with a lender, buyers will find answers to these important questions:
- How much can I qualify for in a mortgage?
- Are there any credit issues I need to clear in order for me to get approved for a mortgage loan?
- What kind of loan is best for me?
- How much cash will I need?
With more homes on the market today, it’s important to know how to get the most value from your home. We are able to help you. As always, I provide this service for free, and there is no obligation to sell. Call (281) 437-5044.
Buyers and New Home Market
As the end of the market year approaches, builders are offering, and will continue to offer, more aggressive pricing and buyer incentives. Some of the best deals can be had between September and December 31st! I can help you negotiate with them to get the best price and additional incentives. Give me a call at (281) 437-5044.
The good news is, lease prices have stabilized for single family homes and condo/townhomes. The market is oversupplied with luxury apartments, as more new projects are completed that were planned and started in the oil and gas boom years. Rental average for single family homes is $1,879 and $1,630 for condo/townhomes.
Making the transition from tenant to home owner can be very challenging for some. I would love to help your family and friends who need some extra help making that transition. If you have not considered buying a home, which helps stabilize your housing costs, increases your tax savings and improves your family’s quality of life, call me. I can help you find a lender who can advise you on what you can do to position yourself financially and how much cash you would need for a downpayment and closing costs.
Investing in Real Estate
Competition for low priced homes to fix and flip, or purchase to rent is the strongest I have seen over the last 6 years. If you are considering investing in rental property, know that being a “landlord” is a job. You will need to learn the skills to manage property and the laws (like fair housing, property safety rules, etc.) If you are interested or even just thinking about getting started investing in properties, give me a call. We can talk more about what kind of homes in what locations would give you the highest ROI (return on investment). I can show you homes that are the best value and provide you with estimates for rental income.