Here are the latest statistics for the area real estate market comparing –
June 2014 to June 2015
- Average Sales Price: $294,000 – Up 6.7%
- Number of homes for sale: Up 12.7%
- Number of homes under contract: Up 15.3%
- Average Days on Market: 45 days, Unchanged – 0%
Houston’s July activity was very robust, with gains in sales prices, total dollar volume, and units sold. Interestingly, the increase in the number of homes for sale is up 12.7%. I can attest to this when working with buyers. Competition for some homes has cooled some. I’m seeing more “Price Reduced” emails in my mailbox for the first time since……well, long enough that I cannot remember when! What does this mean for home values in the Houston area in the near future? There are several factors to be considered.
– Houston’s Economic Diversity
The local Houston economy is bound to slow due to the layoffs in the oil and gas business. The amount it will slow will be a true marker of how diverse our economy is today verses downturns in the past.
– Interest Rates and Unemployment
Last month the Fed Chairperson Janet Yellen indicated interest rates would be raised in small increments because she saw improvement in the employment numbers – 5.3% in July. But, as many of us know, there are a lot of questions about the accuracy of this number, considering many workers are earning less and working more hours to make ends meet. With recent economic events, I think interest rate increases by the Fed will be delayed further.
– World Economics
As of today, the stock market has “corrected” 5% this week alone due to worries about China’s slowdown and its effect on the rest of the world.
Rates have headed slightly lower due to the concerns about the Chinese economy. The average as of today is 3.825 to 4%.
What this means to you if you plan to buy or sell your home:
Typically, prices tend to decline some in the fall and winter seasons. This did not happen in the Houston market in 2014 because demand remained very high. With an increase of over 12% in the number of homes for sale in July, I would expect this years prices to remain flat.
Two of the most important success factors in selling a home are right pricing and effective marketing – reaching the greatest number of qualified buyers. I have a proven marketing and pricing strategy that works! Call me for advice on how to add value to your home to get the best price. 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 an insider in the RE business, I can tell you there will be better incentives this year from the new home builders as compared to last year. They have built up there inventories and want them closed by the end of the year. This may sound far off, but it is not for the builders. Homes ready to close by the end of 2015 are being started now. Some have already started offering incentives because their July sales were slow.
If you or someone you know is looking for a new home, give me a call. I can help with negotiating the best deal on price and incentives. As a realtor, I also assist through the entire process, helping buyers make the best choices for their new or resale home.
Rents in Houston are up significantly, a whopping 25% in the past year! The good news is there are many new apartment complexes going up all over the city. This should help some with the rate of increase, but I doubt it will cause any decrease in rates.
If you have not considered buying a home, which helps stabilize your house’s costs, increase your tax savings and improves most 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.
4927 Mission Lake – http://www.har.com/4927-mission-lake/rent_1223715
2702 Fort Caney – http://www.har.com/2702-fort-caney-dr/sale_25872957
4514 Riley Way – http://www.har.com/4514-riley-way/sale_21898664