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Katy Real Estate News - An overview of the Houston Housing Market by Mike Inselmann of Metrostudy

By
Real Estate Broker/Owner with See TIM Sell @ Keller Williams

Katy Real Estate News - An overview of the Houston Housing Market by Mike Inselmann of Metrostudy

 

By Katy Real Estate Expert Timothy Sojka 713-822-2152

At a recent GHBA (Greater Houston Builder Association) meeting, Mike Inselmann the president of prestigious Metrostudy Housing Research firm gave an overview of the Houston Area Real estate market.  Below are the highlights of this presentation.

First you must understand that there is no national housing market.  The media is telling the entire nation that there is a national housing crisis.  However, this may not be completely true.  Yes, some markets are struggling.  However, the Houston market and most Texas metropolitan areas are doing fairly well.  Most Texas markets are experiencing at least mild appreciation.

The mortgage issues have taken their toll on Texas, slowing what may otherwise be a very robust economy.  Still job growth is strong enough to deliver the steady slow appreciation we have enjoyed. 

Remember, although the rest of the country may continue to struggle, there is no national housing market and the Houston market as a whole is doing fairly well.  Mr. Inselmann, used a very powerful analogy, to explain the Houston Housing Market in its current condition.

Earlier this decade, some baseball players (many who may have been juiced up with steroids) were hitting 50, 60 and even 70 home runs.  However, before the steroid era 30 home runs was a good season, 40 home runs was a great season, and 50 home runs was a career year.  Many Hall of Fame Power Hitters never even hit 50 home runs in a season (Hank Aaron and Willie Mays come to mind).  However, we got spoiled by the steroids so now 40 or 50 home runs do not seem as great.

The Houston real estate market is fairly solid now.  The market is actually quite similar to 2003-2004.  However, in 2005 and 2006 lenders really began taking advantage of sub-prime lending programs and no document loans.  Many of these bad loans got people into homes that they could not afford over the long term.  These poor loans were similar to Real Estate Steriods.  Much like the steroid-juiced baseball players the real estate market performed at a level well above the norm. 

Even the market may not be as strong as 2006 for some time, Mr. Inselmann did give some fairly encouraging news though.

Job growth in Houston has been robust.  Houston has enjoyed a whopping 17% of the national job growth.  In 2008 approximately 80,000 jobs are expected to come to Houston and 2009 is looking just as promising.  Of the 80,000 jobs at least 18,000 will be high paying professional jobs.

Another positive note is that more people are renting now than anytime before in the Houston economy.  Although not encouraging on the surface, think of each renter as someone who wants to buy a home when they are financially ready.  Even more importantly many of these people may be ready, however, they are waiting for positive indicators to move forward (personal aside - maybe if the media stops saying the sky is falling - these people will move forward).

So there are some very strong indicators that the Houston Housing market will continue to perform well.  No the sky is not falling, the market is just fine, however, do not expect for the market to perform like 2006 in the near future.  Let me use another analogy of my own.  Consider 2006 like a great year for a bottle of wine.  Realtors will always remember it fondly and think it has a wonderful bouquet.  However, some homeowners whose homes were foreclosed on may think it was too syrupy sweet.  The upcoming years should be at least a very decent crop - however, the bouquet should be more balanced and palatable for all.

If you would like more information about luxury homes in Katy or West Houston from someone who really understands the community, contact Katy Realtor Tim Sojka at 713-822-2152.  To shop for a home online go to www.Search-Katy-Homes.com .  This blog is the intellectual property of Katy Real Estate Agent Timothy Sojka and cannot be republished or used without his written consent.  

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