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Forbes: Houston commute ranks us 8th costliest city in the US

By
Commercial Real Estate Agent with Keller Williams Realty Southwest 0576394

houston trafficAccording to a new article from Forbes Magazine, Houston now ranks 8th as one of the costliests cities to live in the US. Commuting costs literrally drove Houston in the top 10 nationally. This is just after an article by Forbes earlier this month that ranks Houston as the best place to buy a home given its relatively affordable housing and booming energy economy right now.

Forbes concluded "the city lacks a useful, extensive or reliable mass-transit system," and on average, 20.9 percent of Houstonians' expenses go toward transportation.

To come up with the rankings, human resources consultants Mercer measured the prices of the same basket of goods in 253 cities. The basket consists of more than 200 products, including items like rent for a luxury apartment to the cost of a fast-food hamburger.

 

Janie Diggs
Realty Executives Liberty - Hinesville, GA
ABR, ASR, GRI

WOW! That is crazy! Are you feeling the effects of this "costliness" in the real estate market? I know that things are slower, however, do you feel that it is a "bad" market now and if so, can you elaborate on buyers vs. sellers thoughts in your area?

I apologize for all the questions, I am just curious about the effects of gas prices/interest rate increases/mortgage fraud crackdowns in our real estate markets across the country.

Jul 30, 2008 12:11 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Janie: Great questions and thanks for your comment!

I think the Houston market is still doing great and we are resistent to the national trend because of the strong energy and oil industry here. Actually for me business has picked up because of the summer and some personal marketing. I think Houston has a great market and Im very fortunate to be a part of it.

The effects of gas prices seem to be the same everywhere. With gas costing a premium now, we follow the same steps as every other Realtor in the country. Getting a buyers representation agreement and pre-qualifying clients is critical in this market.  I allow a client either option on my first consultation with them right now. My time and gas are just too valuable to waste right now.

Consumer thoughts are the same. Buyers and sellers still have unrealistic expectations. Buyers believe there are bargains out there and they can buy properties for pennies on the dollar as the late night infomercial tell them. Buyers believe any property on the market must be a desperate broke seller about to be foreclosed on. Buyers believe the banks will accept 30% less than list price because it is a foreclosure. On the other hand sellers want more for their home and include emotional attachments into thier pricing. They have false expectations of the market and tme to sell. I cant complain about all of them, right now Im working with great buyers and sellers.

The gas prices, interest rate changes, and mortgage investigations are having effects everywhere. In my previous blog I mentioned how we just lost another title company in the Houston area.

Jul 30, 2008 05:23 PM
Janie Diggs
Realty Executives Liberty - Hinesville, GA
ABR, ASR, GRI

Thanks for the reply. Your market sounds very similar to ours here in Southeast Georgia.  I am glad to see that real estate markets are still good in other areas. 

Thanks again for the insight-- if your market changes, please let me know.  I like to here from professionals (not the media) so that I can truely be well informed for inquiring clients/customers. 

Jul 31, 2008 02:01 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Janie you made an excellent point. We need to hear about market conditions in different areas from other Realtors and not the media that generalizes the industry. Best of luck to you in Hinesville.

Jul 31, 2008 03:18 PM