Best Performing Houston Housing Segments Over The Past Decade
Don’t Look At “Average Data.” If You’re Considering Buying or Selling A Home In Houston, You Need To Read This.
Best Performing Houston Housing Segments Over The Past Decade
Executive Summary
It’s a good time to be a buyer of:
It’s a good time to be a seller of:
Houston’s most recent housing data is available and the “average data” is misleading if you’re looking to buy or sell a home.
AVERAGES: For Houston, over the past 12 months:
- Total property sales were down 0.9%;
- Single-family home sales were down 0.2%;
- The median single family home sales price increased 2.5%;
- There is now 3.7 months of single-family inventory on the market (as compared to 3.2 months last year).
- As an fyi, a “Balanced Market” occurs when there are 5 – 7 months of inventory. Less is better for sellers; more is better for buyers.
“Looking at the headline numbers, it would appear that the Houston market is pretty status quo, growing at a rate a bit above inflation. DIG DEEPER: The data is anything but average.”
Property sales broken out by price points:
- $500,000+ decreased 8.7%;
- $250k – $500k increased 2.5%;
- $150k-$250k increased 3.5%;
- $80k-$150k decreased 19.1%;
- Leases increased 4.8%;
- In addition, Houston has 45,000 vacant new class A apartments finished or in the pipeline.
“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.”
Below, we’ve analyzed 12 different segments of the Houston real estate market, separating Single Family Homes, Townhomes & Condos by price point. Then we compared these results over the prior 1, 5 and 10 years.
The results are pretty dramatic.
Paige Martin’s Recent Awards:
– “Top 25 Agents in Houston,” Houston Business Journal
– #1 Keller Williams Agent, Houston
– #9 Keller Williams Agent, US
– “Top 25 Agents in Houston,” Houston Business Journal
– #1 Keller Williams Agent, Houston
– #9 Keller Williams Agent, US
Absorption Rates
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:
- $1M+ townhomes
- $1M condos
- $500k – $1M condos
Right now, in Houston, it’s a good time to be a seller of:
- $100k – $250k townhomes
- $100k – $250k single family homes
- $250k – $500k townhomes
“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”
10 Year Appreciation Rates
Over the past decade, nearly all types of Houston real estate have performed well.
The one exception is luxury townhomes over $1,000,000. This is partly due 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.
Read more about Houston Best Real Estate Investment Themes.
5 Year Appreciation Rates
Over the past five years, lower priced properties 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:
- School zoning;
- Close proximity to a major job centers (Downtown, Galleria or Medical Center).
- The Medical Center area has also been in continual high demand.
- Two bedrooms are often easier to resell or rent out, as it can be rented to people with a roommate.
- Access to public transportation (METRORail or good bus lines).
- Try and avoid being right on a railroad or freeway.
- Having a good floor plan matters.
1 Year Appreciation Rates
When comparing 2015 results to YTD 2016 data, the trends are very notable, including:
- Luxury $1M+ townhomes benefited from a growing demand for people wanting to live in some of Houston’s Best Gated Communities;
- Several new construction mid-rise condo projects came on the market, increasing the median sold price per square foot of the $500k – $1M market.
- Condos at some of the older buildings have struggled, making it increasingly important to buy a condo in one of Houston’s premier condo buildings.
- The luxury condo market ($1M+) has seen a shortage of buyers given the uncertainty in the oil & gas market. While not all sellers are willing to adjust their prices (since most don’t need to sell), this year is shaping up as a good time to buy a quality Houston luxury condo.
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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More About Paige MartinTop Realtor In Houston
As featured on Fox News in the Morning, Houston Business Journal, and Houston Chronicle, Paige Martin, a consistent Top Producing Broker-Associate and the owner of HoustonProperties.com, is ranked amongst the top Keller Williams agents in the United States.
Paige Martin is ranked as one of the top residential real estate agents in the world.
A Houston-area native, Paige is an experienced, successful partner in any residential real estate transaction. Armed with a local perspective of the city & a deep knowledge of Houston real estate market, her skills have marked her as one of the most sought-after agents in Houston.
Upon graduation from Baylor University, Paige launched a career as a marketing consultant, developing customized marketing plans and strategies for her clients. She now uses those professional marketing skills to help her real estate clients find and sell their homes.
When working with home sellers, Paige employs individually-tailored, cutting-edge techniques to gain her clients the most value in the shortest time.
She is also an ideal partner for buyers, helping them make informed home-buying decisions with the least amount of stress.
Paige is passionate about her work, her clients and her city. Her attention to detail and excellent communication skills make her the perfect choice for those looking to buy or sell a home in Houston.
In addition to her robust real estate career, Paige was appointed by Houston’s Mayor Bill White to serve on the Board of Directors for the Downtown Redevelopment Authority and Tax Increment Reinvestment Zone #3 (TIRZ), where she volunteers her time as a Chairman of the Housing Committee, as well as a member the Budget & Finance Committee. Paige also serves a variety of non-profits, civic and community boards and has been recognized for fundraising by the Houston Police Foundation.
A member of the National Association of Realtors, Texas Association of Realtors and Houston Association of Realtors, Paige has served on the Houston Association of Realtors MLS Advisory Group, in which she volunteers on the TEMPO Task Force and the CMA Task Force. Paige is also the co-chair of the Keller Williams Realty – Memorial Office’s Luxury Homes Committee.
Paige Martin is a customer-focused Houston Realtor’ (member of the National Association of Realtors) dedicated to providing exceptional service. Paige and her team guides clients through all aspects of learning about Houston, relocating to Houston, buying a home, buying a highrise or condo, tips for selling your home and ensuring that your transaction goes as seamlessly as possible.
