2018 LOOKBACK: HOUSTON’S BEST AND WORST HOUSING MARKETS
Read this if you’re considering buying or selling a home in Houston!
This type of data not only educates you as to the overall market within your property price range & type, but it should also serve as a guide to your negotiating style & pricing strategy.
If you use the wrong negotiating or pricing module, it can cost you significant time, money and heartache.
For example, if you think it’s a seller’s market for your home, but the reality is that it’s a buyer’s market, you may overprice your home & miss the opportunity to sell in the timeframe that’s important to you.
Alternatively, if you’re a buyer looking to purchase in a seller’s market, submitting low offers & refusing to negotiate doesn’t get you very far.
What’s most important is knowing that real estate is hyper-local. It’s critical to understand the gradations in your particular niche. Being well-informed with the best advice you can find is vital to ensure your real estate transaction success!
“Paige Martin is the best Realtor. She is highly experienced and very knowledgeable. She made our buying experience an enjoyable one, not only for us, but for our daughter, son-in-law and several of our friends. We have bought and sold many houses, and Paige has been the best realtor we have ever worked with. We highly recommend her.”
The absorption rate shows how many months it will take to sell out the current supply of homes available (excluding any new listings) based upon the current rate of sales.
As a sample, if there are 10 homes for sale on your block, and 1 home sells every month, then there are 10 months of inventory (e.g. it should take 10 months to sell all of the homes on your block.)
5 – 7 months is a “balanced market.”
A smaller number is better for sellers. A larger number is better for buyers.
Right now, in Houston, it’s a good time to be a buyer of:
Right now, in Houston, it’s a good time to be a seller of:
Over the past decade, nearly all types of Houston real estate have performed well.
Condos between $100K-$250K are top performers. This can be attributed to the rapid growth in the Inner Loop areas, and due to more people looking to move to flood-proof homes.
Luxury townhomes over $1,000,000 are starting to pick up, along with other luxury properties. This may be partly due to the median price dipping slightly, and the fact that many of these luxury townhomes are within neighborhoods that did not floood during Harvey.
Despite this, this housing segment is still lagging behind performance-wise, due partly to certain developers over-pricing new construction listings a decade ago, and the fact that when comparing Houston townhomes for sale vs Houston single family homes for sale appreciation of land values typically exceeds appreciation for any given structure.
Single family homes under $250,000, however, have been seeing a decline.
Read more about Houston Best Real Estate Investment Themes.
In addition, here are some of the key success themes for the three property types that appreciated the most over the past 5 years:
When comparing 2017 results to YTD 2018 data, the trends are very notable, including:
Please contact me if you’re interested in seeing how your home, neighborhood or area of interest has performed over the last decade.
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