There are many factors putting stress on our real estate market, but Houston’s home values have remained resilient. War in Ukraine and now in Israel cause many potential homebuyers to take a pause with concerns about where our economy and our security is headed. Inflation, questionable government policies, China’s dominance in the world, excessive undocumented immigration, and election concerns all drive fear and hesitation into the market.
Interest rates have continued to inch up – now hovering in the 8% range. At 7%, buyers that had been hibernating while rates were rising sharply decided to come back into the market and just adjust their expectations for a home and their cost of ownership. But at 8% many of those are going back into hibernation. Luckily there are adjustable rate options in the 6% range, and rates are expected to come back down next year.
Despite all of that, we all get up every day to pursue enjoyment of life, which starts at home. The housing needs of individuals and families do not change because of all of the negative influences. In fact, people want more stability and security at home when the world is falling apart around them. And if someone has had a new child added to their family or had older children move out or got married or got divorced or found a new job – then their needs for the location, type and size of home have changed and they need to meet that need, regardless of fears and costs.
We are very lucky to live in Houston, where we have more people moving here than moving away, more job creation than job loss, and even after several years of increased appreciation in home prices, our prices are still much lower than most other major metro market prices in the US.
What all this means for you as a resident of the Greater Houston Area, is that it is still safe to pursue your individual home purchase and/or sale needs without fear of an unstable market. We are still moving onward and upward in Houston.
