Best Performing Houston Housing Segments Over The Past Decade

2018 LOOKBACK: HOUSTON’S BEST AND WORST HOUSING MARKETS

Read this if you’re considering buying or selling a home in Houston!

The average Houston single family home sales price has increased 4.3% and sales volumes have been consistent from last year(1).

However, this outlook can be a bit misleading for buyers & sellers. You don’t buy an average Houston house. There are nuances in all real estate segments and understanding the differences is really important!

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:

  • Only 33% of the market has appreciated in the last year.
  • 16% of the market is still down more than 10% from when oil prices peaked 5 years ago.
  • 33% of the market is in a “strong buyer’s market.”
  • Sellers currently have the upper hand in 25% of the market.

Knowing your specific market segment and the nuances of how it impacts you as a buyer or seller makes the difference in your real estate transaction success!

Best Houston Housing Segments

AGGREGATED, OVER THE PAST 5 YEARS, THE BEST APPRECIATION RATES HAVE COME FROM:

Best Houston Housing Segments

Stats By Sales Volume

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.

“Knowing your specific market segment and the nuances of how it impacts you as a buyer or seller makes the difference in your real estate transaction success! DIG DEEPER: The data is anything but average.”

This data is presented by property type & price range for “close in Houston.” (Other formats: Top Schools, Best Appreciation, Best Suburbs, or Request your own format.

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!

Reach out here for advice from the #1 Individual real estate agent with Keller Williams in the State of Texas.

See How Your Neighborhood Is Doing

“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.”

See the Best Housing Segments Guide in PDF

Get the full 38-page Houston Houston Housing Segments Guide in an easy-to-read Adobe Acrobat format. Save to your desktop or read on your mobile.

Stats By Sales Percent

Houston Housing Segments: 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+ condos
  • $1M+ townhomes
  • $500k – $1M condos

Right now, in Houston, it’s a good time to be a seller of:

  • $100k – $250k townhomes
  • $250k – $500k single-family homes
  • $100k – $250k single family homes

Stats By Type Absorption Rates

Stats By Type Absorption 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”

Stats By Type Appreciation Rates 10yr

Houston Housing Segments:
10 Year Appreciation Rates

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.

Stats By Type Appreciation Rates 10yr

Houston Housing Segments:
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.

Stats By Type Appreciation Rates 5yr

Stats By Type Appreciation Rates 5yr

Stats By Type Appreciation Rates 1yr

Houston Housing Segments:
1 Year Appreciation Rates

When comparing 2017 results to YTD 2018 data, the trends are very notable, including:

  • The luxury condo market is seeing a slight drop. Several new construction mid-rise condo projects are impacting the market. More units mean higher competition. Many of these buildings are also selling units below its developers’ expectations, contributing more to the decline.
  • 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. (For a detailed report on which buildings are performing better, contact us.)
  • Townhomes and single-family homes over $1M are performing well.
  • Single-family homes and townhomes in the $250K-500K range showed little movement.

Please contact me if you’re interested in seeing how your home, neighborhood or area of interest has performed over the last decade.

Stats By Type Appreciation Rates 1yr

Related Houston Real Estate Resources

Where To Live For the Best Schools

Finding the best schools in Houston can be a daunting task. The City of Houston has approximately 280 public schools and over 85 private schools. When you include the Best Houston…

Best Land Value Appreciation

These neighborhoods have created the most wealth for their owners. We’re starting to see more deals emerge in the Houston real estate market…

Best Luxury Houston Condos

If you’re interested in making a sound financial decision (and also enjoying where you live), there are three critical factors to consider before making a condo purchase…

20 Most Expensive Houston Neighborhoods

Houston has 10 of the wealthiest neighborhoods in the nation. See which communities made the “20 Most Expensive Houston Neighborhoods” list…

Methodology

    • (1) According to the most recent Houston real estate HAR report at https://www.har.com/content/newsroom/ as of the time of this writing.
    • (2) Statistical trend data for the Close-In Houston real estate market listed above is defined by the HAR MLS Areas 2,4,9,16,17,22,23,24 (originally created by KeyMap), unless otherwise noted.
    • All Houston property sale information was sourced by the HAR MLS database.
    • Data is deemed accurate, but is not guaranteed. Information is provided for informational purposes only.
    • If you’d like to see any neighborhoods, master planned communities or subdivisions added to this bi-annually updated watch list, please let me know.

Get More Details

Paige Martin

Our Recent Awards

Why We’re Different

  • #1 Keller Williams Realtor in Houston
  • #1 Keller Williams Realtor in Texas
  • #9 Keller Williams Realtor in the U.S.
  • "One of Houston's Top 25 Realtors," Houston
    Business Journal
  • "One of America's Best Realtors," RealTrends.com / WSJ
  • Over $250 Million in Houston residential home sales
  • We know this market, and this property.
  • We're candid.
  • We'll tell you the "bad' and the "ugly" about any property we show you.
  • Most often, we talk our clients into NOT BUYING.
- Gretchen & Brad Richter- Gretchen & Brad Richter
“We relocated to Texas from out of state 3 years ago, and Paige’s intimate knowledge of Houston neighborhoods, valuations, trends, and pitfalls was simply unmatched. We would never have been able to find our perfect home without her. She was calm and focused when everything seemed most challenging — a true professional and advocate who has become a dear friend. We are grateful to have met her!

Read More

- Peter McGillivray & Jillian Jopling- Peter McGillivray & Jillian Jopling
“Paige demonstrated all qualities you want in a realtor – knowledgeable, attentive, responsive, patient. She put us into our first dream home, and due to that experience, we’ve returned to her time and again for our other real estate needs. You will quickly realize after working with Paige that while she focuses on completing your deal, her endgame is to ensure her clients’ needs are preserved and satisfied.

Read More

- Gail & Ian Mackey- Gail & Ian Mackey
“As first time buyers in the US, we are delighted to have worked with Paige. She is a delight to work with, and I would recommend anyone to enlist her help if you’re looking to either buy or sell a property.

Read More

- Dr. Jen Shroff- Dr. Jen Shroff
“Paige is simply the best. She was patient with us throughout the process and took time to answer all of our questions! She knows so much about the housing market so we felt very confident that we were in great hands!

Read More

- Travis LeConey- Travis LeConey
“Paige has helped my wife and I twice now. I couldn’t think of a better person to have in your corner when buying or selling! She guided us through the process, and made it seem so easy that selling/buying was fun! Paige is a great person, very responsive, and great at what she does. I recommend Paige to all my friends and co-workers. If you are buying or selling in the area Paige covers, give her a call. You won’t regret it!

Read More

- Xavier Refunjol- Xavier Refunjol
“Paige is dedicated, thorough and caring to where you feel you’re their only client. Their best asset is their honesty, based on experience and data. We had a great time buying our first home largely because of them. We would not hesitate to recommend them to anyone.

Read More

- Taylor Lamb- Taylor Lamb
“Paige was wonderful to work with. She was thorough, knowledgeable and patient. I would highly recommend Paige to anyone looking to buy or sell a home.”

Read More

- Jeremy & Lynn Greene- Jeremy & Lynn Greene
“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.

Read More

- Dr. Forrest Roth, MD- Dr. Forrest Roth, MD
“Paige is the best of the best when it comes to real estate! She has bought & sold many properties for us & we couldn't recommend her more highly!

Read More

- Tina Spiller, Chevron- Tina Spiller, Chevron
“I really enjoyed working with Paige on the sale of my townhome. The HAR listing was perfect and went up quickly and the sale was closed within 30 days. I definitely recommend Paige for any real estate transaction.

Read More

Read 100+ Testimonials: LinkedIn for the Best Houston Realtor

What We Can Do For You

CANDID ADVICE

Our promise is to always give you the most candid advice on any property, to help you make the best decision for your family.

EXPERTISE

Having sold over $250M of Houston homes, we've seen the good, bad & ugly and can help you avoid problems.

GREAT DATA

We built a proprietary data analytics package to help give you the best information on any neighborhood, building or home.

NETWORK OF EXPERTS

Built over fifteen years, our network of experts can help you through each step of the process plus help making living in your new home more enjoyable.

Latest Houston Real Estate Stories

Read more Houston real estate updates

Back to Top