Houston Housing Market Might Avoid Most of Energy Market Decline
Last month prominent real estate economist Mark Dotzour told Houston Home Builders the energy markets slowdown will continue to be a negative force on the local Houston economy for the next two years but the housing market is most likely to hold as long as inventory levels remain as they are and have been in recent months. He stated “ It's amazing how resilient the housing market is in Houston”. Mark’s speech was given at the midyear 2016 economic forecast event held by the Greater Houston Builders Association.
Despite low energy prices and industry layoffs home values and sales have not collapsed. This is due to the fact the real estate market in Houston is not overbuilt when this energy major slowdown started to occur. There has not been a massive overbuilding of homes in this whole area and therefore Houston area housing market is ready to come out of this energy downturn in really strong shape.
The Housing market will not come out of this situation with no issues as Dotzour estimates new home sales will fall about 10 % in the next year.
Sales of high-priced or luxury homes are currently softening the most. Builders are hoping to capitalize more and more on moderately priced homes where demand is and will continue to be strong.
Consumers this analysis is telling you the housing market is still strong but is experiencing a slowdown. Prices will not fall and in fact for new homes prices will still move upwards. Builders price incentives might increase by small amounts depending on the area and neighborhood. If you are on the fence about buying a home thinking time is on your side you are not interpreting the situation correctly. You will be sorry if you continue to procrastinate. Take action now before you get priced out of the market. If you are looking for a luxury resale home this is probably a great time to buy as sellers are more willing to negotiate to make a deal. One year from now it is hard to say but prices of luxury resale homes might actually start to firm and increase.
If you have any questions or want to start the home hunting process in Katy, Cypress, Fulshear, Sugar Land areas contact me and let us get started on your housing journey.