Houston, Texas has long been known as a prime location for real estate investment. However, recent economic and social factors have sparked concerns about the state of the real estate market in this bustling city. As investors and homeowners alike wonder whether Houston's property values are on the decline, it begs the question: is it time to reconsider investing in Houston's housing market? In this blog post, we will examine current trends and take a closer look at what these mean for Houston's real estate sector & Houston area realtors, now and into the future.
There is no doubt that the real estate market in Houston, TX is on the decline. According to data from the Houston Association of Realtors, home sales in the city declined by 7.6% in 2017 compared to 2016, and the median sales price also fell by 3.2%. This trend has continued into 2018, with sales falling by another 5.3% in the first quarter of the year compared to the same period last year.
However, it's important to keep perspective when considering these numbers. The decline in home sales is part of a broader trend across the US, as rising interest rates and affordability concerns have caused buyers to step back from the market. Additionally, while Houston's median sales price is down from 2016, it's still up significantly from where it was just a few years ago; in fact, it has increased by almost 20% since 2013.
So what does this all mean for Houston real estate? While there is no doubt that conditions have softened in recent months, it's important to remember that the city's housing market remains strong overall. Although buyers may be more cautious right now, there are still plenty of people looking to purchase a home in Houston – so if you're thinking of selling, now may be a good time to get in touch with a genuine realtor in Houston and weigh your chances.
There are numerous factors influencing the decline in Houston real estate prices. First, the energy industry is in a slump, and job cuts in the oil and gas sector have been widespread. This has led to increased foreclosures and vacant properties, which in turn decreases demand and helps drive prices down further. Additionally, the strong U.S. dollar is making Houston a less attractive destination for international buyers, who have been a key driver of the city's real estate market in recent years. Finally, concerns about the long-term stability of the U.S. economy are leading many people to believe that now is not a good time to invest in property.
The impact of the decline in Houston real estate prices is mixed. Homeowners who bought near the peak of the market may be underwater on their mortgages, owing more than their home is worth. Renters may benefit from lower prices as landlords compete for tenants.
Those thinking of buying a home in Houston may find good deals, although they may also have to contend with a glut of inventory and rising foreclosure rates. Investors may find opportunities in the distressed market, but they must be careful not to overpay. It’s hence advisable to discuss this with a reputed realtor in Houston, like the Jay Thomas Realtor & to understand beforehand the area you might be investing into!
The most notable change in government policies that have led to a decline in Houston’s real estate market is the increase in the minimum down payment required to purchase a home. This has made it more difficult for people to qualify for a loan and has resulted in fewer people buying homes. Additionally, the government has implemented new regulations that have made it more difficult for investors to purchase properties.
In order to get a better understanding of whether or not real estate in Houston is on the decline, it is important to compare it against other cities in Texas. When looking at the data, it is clear that Houston has been outperforming other major cities in Texas when it comes to real estate.
Looking at data from the last five years, Houston's real estate market has been relatively stable while other markets like Dallas and San Antonio have seen more volatility. Additionally, Houston home prices have actually increased while other markets have seen declines.
It is also worth noting that vacancy rates in Houston are currently lower than in both Dallas and San Antonio. This indicates that there is still strong demand for housing in Houston despite any potential declines. Overall, it appears that real estate in Houston is faring better than other major cities in Texas and shows no signs of serious decline.
The Houston real estate market is projected to continue growing in the coming years. The population is expected to increase by 2.8 percent annually through 2025, which will spur demand for housing. The job market is also expected to remain strong, with employment growth of 2.7 percent annually through 2025. The combination of population and job growth will keep the housing market healthy and support future price appreciation.
Also Read: Researching the Real Estate Market in Your Area to Set Your Price
In conclusion, real estate in Houston, Texas, is currently experiencing an upswing with more listings and increased buying activity. The current market conditions offer buyers a great opportunity to score some good deals on homes for sale in the area. The future of the real estate industry here looks promising thanks to its vibrant economy and growing population. With several initiatives underway from state and local authorities, it's clear that investing in Houston's housing market could prove profitable now and into the future.