Texas is hot and the real estate market in Houston is no different. Over the past year, total dollar volume in sales surged nearly 44% to a record $4.8 billion.
Nearly every metric used to measure real estate market health is positive. The number of sales, average home prices, and more are trending up.
However, there is no doubt that the current market favors sellers. You need to know the ins and outs to make the best investment for your family.
Read on to learn all about the Houston real estate market. Explore recent forecasts and trends so that you can take advantage of Houston real estate.
Home Prices Are Soaring
The first thing that you need to know is that Houston real estate prices are rising fast. The average price is up nearly 24% since the year prior. The average home price now stands at nearly $400,000.
This affects your real estate strategy whether you are a buyer or seller. As a buyer, rising home prices mean that you need to take a more aggressive approach. You will need to make offers that meet or exceed the listing price.
Sellers are taking advantage of sky-high pricing. A seller’s strategy may include pricing over market value and patiently waiting for the best offer.
Homes are lasting on the market for less than one month. This means that sellers can expect to sell their homes quickly and receive competitive offers. This real estate agent will help buyers and sellers navigate this fast-moving market.
Supply Is Adequate
The news story across the country is about a nationwide home shortage. According to the press, home supply cannot keep up with demand.
While this may be true across large portions of the country, Houston still has an adequate supply. Currently, there is the highest inventory of single-family homes since February. This supply is fueled by rapid new construction and development.
The Houston Real Estate Market Is Sustainable
Many homeowners and investors are concerned about whether this market is sustainable. They fear that a price bubble is emerging and a 2008-like crash is inevitable. However, the current market is unlike 2008 in many ways.
For starters, the 2008 housing crash was caused by inadequate lending rules. This allowed lenders to offer mortgages to unqualified borrowers. Both federal and state governments overhauled the lending rules to prevent this from occurring again.
Today’s Houston real estate market is better defined as a realignment. Thanks to low taxes and economic opportunity, Americans are moving to Texas in droves.
This means that value once present in California or New York is shifting to Texas. As long as the fundamentals of the Houston real estate industry remain constant, the market is in good condition moving forward.
Navigating the Real Estate Market in Houston
Your Houston real estate agent has his or her work cut out for them. The market is moving at an electric pace and requires an aggressive team.
Your agent will guide you through soaring home prices and intense demand. Make no mistake, Houston is in demand and is a worthwhile investment.
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