Monthly Archives: April 2008

What Bad Market??

Is Houston experiencing a bad market?? Did the real estate bubble burst? Has the economic instability and bankrupt mortgage companies caused slow moving real estate in Houston?? While plowing through my many weekly reads I noticed a trend in the doom and gloom propaganda, focusing on the overall market, and simply glazing over the local markets, or mini-markets that truly affect real estate trends. Local economic factors such as job growth, cost of living, and housing affordability, determine local markets and set trends.  While Houston is not immune to downturns or slower appreciations, we are #1 in many key areas, drawing countless hopeful homeowners, new energy, engineering, and medical professionals, and novice and experienced real estate investors. I do realize dreadful, salacious,shocking news sells ads, and gains viewers to commercials.  However, I worry about the consumer who doesn’t spend hours per day treading the streets of Houston, in the trenches of the current market- can they decipher what is real from what is just interesting news?  Probably not.  After several years in sales, I have come to realize that the best, happiest, and most satisfied customer – buyer or seller, is an educated customer.  Hopefully these facts on the Houston real estate market, will help you be just that – educated, and steer you into making the largest transaction of your life based not on hearsay or gossip focusing on our neighboring markets, but on relevant information in our local market.

 

 

  • Houston was #1 in housing purchases and sales among the top 10 metro housing markets 2006
  • Houston is #1 in affordable housing with a median home price of       $ 145,390,  30.8% less than national average
  • Houston is #1 in real estate investment options for experienced and novice investors
  • Sales prices are holding up and  increased 5.7% from October 2006 to $199,397
  • Most dramatic fluctuations in Houston housing are seen in homes below $80,000 and above $500,000
  • Home sales in Houston for 2007 show an 8.7% increase over 2005, and dollar volume is over 12 billion, showing a 20% increase
  • Buyer demand is great, showing a 14.3% increase over 2005, giving sellers plenty of viewer traffic, and buyers a plethora of options
  • Houston’s inventory is up 15% in 2007, which is slowing home appreciation to approximately 4%, however, still fairing better than the national average’s home appreciation which in some areas is in negative percentages
  • Houston is experiencing a buyers market and is a great place to buy up or purchase your first home

 

These are facts, no hoopla, no doom and gloom, but also no deception.  Although the real estate market is cyclical, Houston is flourishing with plenty of homes to buy and plenty of buyers to view your home, luxury upgrades, builder gifts and incentives, record low interest rates, and record high job growth. These are the numbers, Houston’s numbers, and Houston is where we live.

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