Lerner Realty Solutions

Monthly Market Update – October 2016

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Houston Home Prices Remain Strong

Record High Prices for a September

Here are the latest statistics comparing –

September 2015 to September 2016 (for single family homes)

  • Average Sales Price: $271,466 to $277,849, up 2.4%
  • Active listings (Homes available for sale): Up 11.6%
  • Number of homes under contract: up 10.5%
  • Number of home sales (closed): down 0.5%

Home Prices

Prices have remained strong in the Houston area, according to HAR’s latest market report, even with an increase of 11.6% in homes for sale compared to September 2015. Prices have taken a small dip since August – $289,519 to $277,849.

Mortgage Rates

Rates have increased a small amount to an average of 3.52% today. This is still a historically low rate. Low rates, of course, improves affordability for home buyers. This is still a great time to refinance your current loan if it is 1% higher than current rates.

I work with a few very reliable lenders I have vetted for their competitive loan costs, interest rates, and their consistent communication with clients. Call me if you need a referral for a trusted lender to buy or refinance a home.

Sellers

With more inventory for buyers to choose from today, it’s important your home appeals to and is exposed to as many buyers as possible, and is marketed at the right price. If you, or anyone you know is thinking about selling, call me at (281-437-5044). My team members and I can advise you on how to add value to your home and improve its appeal to buyers. We can show you our winning marketing plan to expose your home to the highest number of qualified buyers and their agents.

Buyers and New Home Market

New home builders are continuing incentives to sell their inventory homes off before the end of the year. Give us a call to assist you with finding the best deals and negotiating the best terms and price on a new home. Builders want to get these homes off their books by December 31st to save on taxes. You also benefit by getting a TX Homestead Exemption (property tax deductions of 10 to 15% for you primary residence) for 2017. But, you must own the home on January 1, 2017. Home buyers who purchase in 2017 must wait until 2018 to receive this exemption. The exemption is available on new and resale homes. Give me a call at (281) 437-5044.

Rentals

Leases for single-family homes rose 5.4%, but townhomes/condos jumped 10.8%. Rental rates declined slightly 1.8% at $1,764 and 1.0% to $1524, respectively. This is somewhat good news for renters after rate increases of 15% in 2014 and another 5% in 2015. With mortgage rates still at historic lows, home buying in Houston remains extremely affordable, especially when compared with the other 4 largest US cities.

Investing in Real Estate

If you are considering investing in rental property, know that being a “landlord” is a job, not a hobby! There is a lot to learn – local lease property codes, state and federal laws and regulations. If you are interested in learning more about investing in rental 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.

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