Houston TX real estate market report & what kinds of real estate buyers are there?
Houston’s real estate market has proven to be extremely resilient, and despite the collapse of oil prices, it looks like it will have one of the best years so far. Companies are declaring bankruptcy, people are getting fired, yet the single-family home sales rose 10% year over year. Many believe that the Houston R.E. market depends on the oil industry, but we can see that it is in better shape than ever and quite healthy, mainly because it is not overbuilt yet, unlike other areas in the US. And one of the main reasons behind the increased sales is the Millennials who slowly but surely enter the Houston R.E. Market.
The Market as of July 2016
But is it the right time for buying/selling a home in Houston right now? Well, this is a complex question, and it depends on the home you have in mind. The average price of a single-family home declined less than 1% as of July, reaching USD 290,931, while the median price of single-family home held steadily and remained at USD 225k. New listings spurred Houston R.E. market’s inventory growth from a 3-month supply to 3.6 months, and this not only indicates how balanced and healthy the market is, but it is also great for buyers, as the larger the inventory is, the more choices they have at their disposal.
Plentiful Housing Inventory
Upon further investigation of Houston R.E. market data, we see that as of July 2016, townhome and condo sales dropped down by 2.6%, reaching USD 198,800. However, it is important to note that the median price rose 7.6% to USD 163,000. In addition, demand for single family and townhome/condo rentals was strong in May, and we’re seeing more normal market conditions this year. And the main reason behind that is, as we state above, the plentiful housing inventory for buyers.
The Types of Property Buyers Out There
But who are the property buyers in Houston and what is their profile? We can clearly identify the desperate buyer, whose loan is expiring and he or she is eager to buy a house right now. Then there is the “I don’t know” buyer and the family outing, casual looker buyer. Real estate agents often come across the “I know a friend who said you can get me a good deal” buyer, but there are also the ever-present serious and straight forward buyers. Then there is the loitering buyer, the overly excited and highly motivated buyer, the lot of excuses type of buyer, and last but not least, the bargain hunter buyer.