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2018 Housing Market Predictions in the city of Houston, Texas
Are you preparing to enter the housing market in 2018? Whether you’re a buyer or a seller, 2018 is likely to be a year of both challenges and opportunities. Our crystal ball is just as cloudy as everyone else’s these days, but based on recent trends and events, we can make a few predictions for the upcoming year.
Inventory Remains King – The housing market has been partially throttled by a short supply of homes, especially in the starter home market. At the beginning of the fourth quarter, over half of available homes were in the top third of home values. Supply should continue to increase and ease price pressures by the end of the year, but the total supply will still fall short of overall demand.
Slower Growth in Home Prices – Zillow reports that home prices are expected to rise 4.1% in 2018, a decrease from today’s 6.9% growth rate but well above the typical growth rate near 3%. Realtor.com expects a closer-to-average growth rate of 3.2%. This reflects an expectation that supply problems will ease somewhat – good news for home-buyers, but bad for homeowners who simply want to see the value of their home increase.
Interest Rates Will Increase – How many times have you heard that one? This year, it’s likely to come to pass. Interest rates have risen slightly thanks to three small rate increases by the Federal Reserve, and the pace is likely to continue. Realtor.com and the Mortgage Bankers Association both expect the interest rate on a 30-year fixed loan to reach 5% during 2018 – the highest level since February 2011.
Suburban Sprawl Increases – Housing disincentives in urban areas are likely to drive Millennials and other first-time home buyers further out into the suburbs, where developers can build more affordable homes via lower land costs.
In general, the market should begin to shift away from the current supply imbalance, blunting price increases. Homeowners will see lower rates of appreciation than they have in recent times, giving new opportunities to first-time homeowners.
However, generalities aren’t important to you – you only care about your local market and the value of your home. Keep a close eye on your local market for any factors that run counter to national trends, and you’ll be in position to make the most of your buying and selling opportunities in 2018.
Hurricane Harvey Can’t Stop Houston’s Housing Market From Reaching Record Territory In 2017
HOUSTON — (January 10, 2018) — Despite the devastating assault that Hurricane Harvey waged on the greater Houston area last summer – from which many property owners are still recovering – the Houston real estate market set new records by the time the sun set on 2017. Single-family home sales for the full year rose 3.5 percent compared to 2016, the previous record year. However, as 2018 gets underway, the supply of housing remains constrained. Inventory had begun to reach more balanced levels when Harvey’s widespread flooding sent affected residents scrambling for whatever undamaged rental and sales homes were available to provide safe shelter for themselves and their families.
According to the latest report produced by the Houston Association of Realtors (HAR), sales of all property types in 2017 totaled 94,726 units, a 3.5-percent increase over 2016’s volume, which was 91,530. Total dollar volume for single-family homes sold in 2017 rose 6.5 percent to $23 billion.
Lease Property Update
Houston’s lease market had a mixed performance in December. Single-family home leases fell 3.6 percent and townhome/condominium leases rose 7.3 percent. The average rent for single-family homes increased 3.3 percent to $1,745, while the average rent for townhomes/condominiums rose 2.4 percent to $1,532.
December Monthly Market Comparison
The Houston housing market registered largely positive measurements in December, with single-family home sales, total property sales, total dollar volume and median pricing all up compared to December 2016.
Month-end pending sales for single-family homes totaled 5,413, an increase of 24.0 percent versus 2016. Total active listings, or the total number of available properties, declined 2.2 percent from December 2016 to 33,432.
Single-family homes inventory shrank from a 3.4-months supply to 3.2 months. For perspective, housing inventory across the U.S. currently stands at a 3.4-months supply, according to the latest report from the National Association of Realtors (NAR).
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Chavez FamilyGod is good all the time!!!!
Today is a very big day for our family! We closed on our home and needless to say we couldn't be more excited! Thank you God! And a big ole Thank you to Claudia Cortes for being such a huge part of this and putting up with me on my frustrated days!
Luis HernandezGracias Claudia por ayudarnos a comprar nuestra casa. Claudia hizo hasta lo imposible para que nos dieran la casa. Negocio con el dueño de la propiedad para que el tambien nos ayudara. Yo la recomiendo como la mejor agente de bienes y raices. Gracias Claudia!
Maribel FExcelente y muy profesional. Se la recomendamos a todos!
Muchas gracias Claudia por su paciencia y por su esfuerzo. Gracias a Dios y a usted al fin pudimos obtener la casa de nuestros sueños. Estamos muy agradecidos con usted por explicarnos todo el proceso y guiarnos hasta que logramos nuestra meta.
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