Houston's Best & Worst Housing Markets

Read this if you’re looking to buy or sell a home in Houston this year.

Houston's Best & Worst Housing Markets

Background

Our greatest concern is that last year’s euphoria (2021 home sales were up 13%, and total dollar volume was up 28%) led to some really risky deals that violated the 9 Kisses of Death – the 20-year research study of what NOT to buy in Houston.

The data below, along with our case studies of last year's home buying and selling mistakes, highlight the value of targeted trends vs "full Houston market averages".

Summary

Takeaway

Reach out here for advice from The Houston Properties Team - the #1 boutique real estate team in Houston.

"The Houston Properties Team is the #1 boutique real estate team in Houston for good reason. Paige, Lisa & Shannon are incredibly candid and professional and they go the extra mile. Their analytics system is 2nd to none, their Success Team is exceptional and on the ball, and they have vendors for everything you'll need." – Google review

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Table of Contents

  1. Houston Real Estate: The Good, The Bad, & The Ugly
  2. Absorption Rates And What It Means For You
  3. Houston Housing Market: 10-Year Appreciation Rates
  4. Houston Housing Market: 5-Year Appreciation Rates
  5. Houston Housing Market: 1-Year Appreciation Rates
  6. Sources, Methodology & Disclosures
  7. Paige Martin & The Houston Properties Team

Houston Real Estate: The Good, The Bad, & The Ugly

Houston Real Estate: The Good, The Bad, & The Ugly

“Paige Martin is the best Houston Realtor. She is highly experienced and very knowledgeable. Paige and The Houston Properties Team 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.” - Jeremy & Lynn Greene

Inflation, mortgage rates, oil price hike, and the post-lockdown return to normal life are starting to impact the Houston real estate market.

Houston home sales are down 9.1% year-over-year(1). At 2 months, Houston home inventory is still well below what is considered a balanced market (6 months).

However, this outlook can be a bit misleading for buyers & sellers. Why?

  1. You don't buy or sell an average house.
  2. The average* stats don't reflect the trends in your specific target Houston housing segments.
  3. The government response to the pandemic has skewed personal finances. We're well over two years into the pandemic and we're still seeing its unprecedented impact on the way the housing market moves.
  4. The price of oil continues to be a wildcard.
  5. Typically there's a 6- to 12-month lag on how the market reacts to economic dips or spikes.

For example, when you divide the Close-In Houston real estate market(2) into 12 segments based on property type & price range, the data indicates:

Houston home sales changes

Now is a good time to be a buyer of:

Now is a good time to be a seller of:

Over the past 10 years, the best appreciation rates have come from:


Absorption Rates And What It Means For You

Absorption Rates And What It Means For You

Many of Houston’s most popular neighborhoods are also, historically, the best performers in real estate appreciation. Contact us for a custom list of homes in these areas and a comprehensive Houston real estate market forecast.

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:


Houston Housing Market: 10-Year Appreciation Rates

Houston Housing Market: 10-Year Appreciation Rates

“Paige is simply amazing! Paige is a customer service driven agent that doesn’t let any small details slip past her. She is meticulous with her offers, inspections, and knows how to effectively negotiate the right price for her buyers and sellers” - William Swallen

Over the past decade, nearly all types of Houston real estate have performed well.

Townhomes between $100K-$250K are top performers. The development of affordable housing in some of Houston's Best Suburbs has spurred this growth.

Condos have seen a significant jump as well. 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 Houston home prices falling slightly, and the fact that many of these luxury townhomes are within neighborhoods that did not flood during Harvey.

Despite this, townhome sales are still lagging behind performance-wise. When comparing Houston townhomes vs Houston single family homes, the appreciation of land value typically exceeds appreciation for any given structure.

Read more about Houston Best Real Estate Investment Themes.


Houston Housing Market: 5-Year Appreciation Rates

Houston Housing Market: 5-Year Appreciation Rates

Whether you buy or sell first depends on the current market and your unique situation. Both options come with an element of risk. Our experience taught us to make the proper assessment out of the overall scenario every homeowner is in. Contact us to help you make the most viable decision.

Over the past five years, properties within or in close proximity to major job centers (e.g. Downtown, Medical Center or Galleria) have appreciated very well.

In addition, here are some of the key success themes for the three property types that appreciated the most over the past 5 years:


Houston Housing Market: 1-Year Appreciation Rates

Houston Housing Market: 1-Year Appreciation Rates

Buying or selling a home within the best neighborhoods can be very tricky, especially with the current Houston property prices and segments. With over $500M real estate sales, the Houston Properties Team is the #1 Boutique Real Estate Team in Houston. Contact us for a custom Houston cost of living calculator, and we can review your options.

Last year, the Houston housing market saw an unprecedented shift due to the economic whiplash of COVID-19. We entered 2021 in a seller’s market.

This year, we're seeing a lot of volatility across the board driven by inflation, mortgage rates, and a global economic correction (after a very strong surge post-Covid-19 lockdowns).

When comparing 2022 results to the full 2021 data, the Houston housing prices trend is very notable, including:

Please contact me if you’re interested in seeing Houston housing market predictions in 2020 or if you are interested in knowing how your home, neighborhood or area of interest has performed over the last decade.


Sources, Methodology & Disclosures

Sources, Methodology & Disclosures

With all the available information out there about Houston's top areas, it can be confusing when finally making a decision on which neighborhood to choose. We provide comprehensive and substantial Houston home guides and Houston real estate market news to keep you informed and up-to-date. Get advice from the best Houston Realtors and remove the guesswork when looking for one of the best homes in Houston to live in.


Paige Martin & The Houston Properties Team

Paige Martin & The Houston Properties Team

The Houston Properties Team has a well-defined structure based on the individual strengths of each member. Each member is a specialist in their role – which is why our homes sell faster and for more money than average.

Paige Martin, Broker Associate with Keller Williams Realty, and the Houston Properties Team are ranked among the top residential Realtors in the world.

They have been featured on TV and in dozens of publications including The Wall Street Journal, Fortune Magazine, Reuters, Fox News in the Morning, Money Magazine, Houston Business Journal, Houstonia, and Houston Chronicle.

Paige Martin was just ranked as the #5 agent in the world with Keller Williams, completing over $1 Billion in Houston residential real estate sales.

Houston Properties Team awards

Recent awards include:

– 2022: #1 Residential Real Estate Team by Sales Volume, Houston Business Journal
– 2021: Best Real Estate Teams in America, RealTrends.com
– 2021: Top 100 Women Leaders in Real Estate of 2021
– 2021: America’s Top 100 Real Estate Agents
– 2021: Top Real Estate Team (Houston Properties Team), Houston Business Journal
– 2021: Best Houston Real Estate Team, Best of Reader’s Choice
– 2021: Top Real Estate Team (Houston Properties Team), Houston Business Journal
– 2021: #1 Real Estate Team, Keller Williams Memorial
– 2020: America’s Best Real Estate Teams, Best of America Trends
– 2020: Best Houston Real Estate Team, Best of Reader’s Choice
– 2020: Top Real Estate Team (Houston Properties Team), Houston Business Journal
– 2020: #6 Individual Agent, Keller Williams, Worldwide
– 2020: #1 Individual Agent, Keller Williams, Texas (Top Keller Williams Realtor)
– 2020: #1 Real Estate Team, Keller Williams Memorial
- 2019: Top Residential Realtors in Houston, Houston Business Journal
- 2019: America’s Best Real Estate Agents, RealTrends.com
- 2019: #5 Individual Agent, KW Worldwide
- 2019: #1 Individual Agent, KW Texas
- 2018: #5 Individual Agent, Keller Williams, Worldwide
- 2018: #1 Individual Agent, Keller Williams, Texas
- 2018: #1 Individual Agent, Keller Williams, Houston
- 2018: America’s Best Real Estate Agents, RealTrends.com
- 2018: Top 25 Residential Realtors in Houston, Houston Business Journal
- 2018: Texas’ Most Influential Realtors
- 2017: #1 Individual Agent, Keller Williams, Texas
- 2017: #1 Individual Agent, Keller Williams, Houston
- 2017: #10 Individual Agent, Keller Williams, Worldwide
- 2017: America’s Best Real Estate Agents, RealTrends.com
- 2017: Top 25 Residential Realtors in Houston, Houston Business Journal
- 2017: Texas’ Most Influential Realtors
- 2016: #1 Individual Agent, Keller Williams, Texas
- 2016: #1 Individual Agent, Keller Williams, Houston
- 2016: #20 Individual Agent, Keller Williams, Worldwide
- 2016: Texas’ Most Influential Realtors
- 2016: Top 25 Residential Realtors in Houston, HBJ
- 2016: Five Star Realtor, Featured in Texas Monthly
- 2016: America’s Best Real Estate Agents, RealTrends.com
- 2015: #9 Individual Agent, Keller Williams, United States
- 2015: #1 Individual Agent, Keller Williams, Texas
- 2015: #1 Individual Agent, Keller Williams, Houston
- 2015: America’s Best Real Estate Agents, RealTrends.com
- 2015: Top 25 Residential Realtors in Houston, HBJ
- 2015: Five Star Realtor, Texas Monthly Magazine
- 2014: America’s Best Real Estate Agents, RealTrends.com
- 2014: #1 Individual Agent, Keller Williams Memorial

...in addition to over 318 additional awards.

Paige also serves a variety of non-profits, and civic and community boards. She was appointed by the mayor of Houston to be on the downtown TIRZ board.

Benefits Of Working With The Houston Properties Team

best realtors in Houston

Our team, composed of distinguished and competent Houston luxury realtors, has a well-defined structure based on the individual strengths of each member.

We find the team approach as the most effective way to sell homes. We have dedicated people doing staging, marketing, social media, open houses, and showings. Each Houston Properties Team member is a specialist in their role—which is why our homes sell faster and for more money than average.

The benefits of working with a team include:

To meet all the award-winning members of the Houston Properties Team, please go here.


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