Here are the latest statistics for the area real estate market comparing –
November 2014 to November 2015 (for single family homes)
- Average Sales Price: $262,064, down 3.5%
- Number of home sales (closed): down 10.5%
- Number of homes under contract: down 6.3%
- Average Days on Market: 54 from 55, up 2%
Houston area single family home sales fell 10.5% from 5,135 in November 2014 to 4,595 this November. Average sales price was down 3.5%. Sales volume for homes over $500,000 was down 22.0%. The only increase in volume was in homes priced $150,000 to $249,999, up 5.7%.
As we can see from these numbers, the higher end, luxury market homes have experienced the steepest decline. This is due to the downturn in the oil and gas industry. With the number of company transferees slowing to a trickle and other would be buyers in this bracket holding back on purchasing, waiting to see what will happen with energy prices, it is pushing inventory of homes for sale higher and prices lower.
Rates are still holding at an average of 4.125% for a 30 year conventional loan. With a Federal Reserve rate hike expected this month, rates will follow suit. Though, as many of us know who lived through the 1980’s, rates will still be very reasonable.
What this means to you if you plan to buy or sell your home:
As we can see from the numbers, change in sale prices varies by price range. As a realtor, I am seeing a lot of buyer activity for homes under $350,000. There are still a good number of first time homebuyers and investors wanting to buy in this range. So, in this slowing market, it is most important you use a professional agent who knows how to market your home to show it favorably (staged and with professional photos) to the highest number of qualified buyers (effective marketing plan). 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
Even with the end of the year soon approaching, builders are still marketing their inventory homes at reduced prices with added buyer incentives. They are ready to unload completed homes! I receive emails and office flyers daily with new offers. So, if you or someone you know is looking for a new home, now is the time! 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.
Leases of single-family homes rose 7.5% with rents up 1.9% from one year ago. Leases on town home/condominiums jumped 12.4% with rents down 5% from a year ago. If you are looking to buy your first home, this is an ideal time as interest rates are still very low and there is more inventory of homes to choose from. Homes in some parts still sell quickly with multiple offers. This varies by neighborhoods. 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 down-payment and closing costs.
Investing in Real Estate
The majority of the wealthiest people in our country have invested and made their money in real estate. 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.
I want to wish you and your family a Merry Christmas and a healthy and prosperous New Year!