Today, we’re going to discuss the latest Houston Real Estate Market news and find out how it can affect you as an investor, real estate agent or a homebuyer in the latter half of 2020. This housing market has been impacted by the pandemic which led to a decline in home sales. However, the recent market conditions are showing some signs of improvement due to growing consumer interest and demand.
Previous housing data shows how hard the coronavirus pandemic hit the local real estate industry, not just Houston but across the globe. This month (August 2020) a continued surge in closings from homes that went under contract after the lifting of COVID-19 government measures propelled Houston real estate market into record territory last month.
A huge number of homes went under contract in May after COVID-19-related stay-at-home orders expired which led to a surge of closings in June. Home sales in the Houston housing market are back up to levels considered to be normal for the summer buying season. Homes priced between $250,000 and $500,000 led the way among all housing segments, soaring 28.3 percent year-over-year. The second-best performer consisted of homes in the $500,000 to $750,000 range, which jumped 18.6 percent, according to H.A.R.
New listings were down for five consecutive weeks during the week ending July 6 compared to 2019. Pending sales which have been strong over the last several weeks, also reflected mounting concerns related to a spike in coronavirus cases with a 3.6 percent decline for the week ending July 6 compared to the same week in 2019.
Is it a good time to invest or buy a house in Houston?
Yes! Currently, home prices in Houston are not rising due to rising oil prices and terrible pandemic. So if you want to invest in Houston real estate, then now is the time to do so. The real estate appreciation rate in Houston in the latest quarter was around -0.71%, according to NeighborhoodScout.com. This puts Houston in the top 10% nationally for real estate appreciation.
Houston has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.
We think that the Houston housing market would remain neutral or a buyer’s real estate market. The home sales will drop temporarily without affecting the prices. Usually, this region remains skewed to sellers. However, in the current cycle, the home prices may remain flat to favor buyers.
This means you can probably buy a home for less than list price, and the seller might be willing to pay some or all your closing costs. It is expected that there will be some increase in the inventory levels due to COVID-19. If buyer demand eases, we could see a positive influence on Houston's low inventory levels while at the same time seeing a negative impact on sales.
Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment. Currently, the inventory remains relatively high in Houston. There are more homes for sale than there are buyers, and homeowners are becoming more and more eager to sell their property.
About the writer: Graduate with Diploma in Information Technology and Business Administration major in marketing & management. Former teacher for secondary and tertiary level. Former Trainer for Medicare customer support John used to write articles for Houston Real Estate investing and market.