The slump didn't hit texas because our prices didn't go up as much as the rest of the country. Florida, Boston, and Virginia went up rediculously in the last 5 years. The slump has really hurt anybody that bought before 2 years ago. It just killed the people who bought last year at the peak especially if they couldn't afford it. Imagine being upside down on your mortgage by a few hundred thousand and your payments going up because your mortgage rate is adjustable.
51 days isn't bad. i don't know if it's average or not. yeah...so you're hearing these stories about prices coming down...but it's not happening here, as far as i can see. houston always lags...but our market is very different right now than the rest of the country, as best i can tell.
i dont think the prices are being effected right now, but there is strong potential for it to happen in the coming quarters. but like someone else said, not all prices fall. several factors play a role.
The subprime market was less than 1.5% of all mortgages in this country. It was a completely overblown situation. The more important factor in long-term real estate prices (home values) in a city is not national trends but more area economics. Houston tends to have lower median housing prices (around $190K) than most large cities mainly because of the significant downturn in the mid-1980's and lack of strong appreciation compared to that of other large (especially) the coastal cities. The key factor is employment which can create more sustainable price appreciation if demand is growing and present. Areas like detroit and cleveland are being hit very hard more because of their dwindling employment rates rather than areas like New York and Washington because of the continued demand and employment issues. Houston I believe has long-term growth potential based more on the lower median housing prices and the job growth outlook based on Houston being the hub for the global energy markets. I do think that areas outside of the loop are more prone to declines as there is lots and lots of land available and people would rather move down the street into a new home rather than buy someone's older home as builders are building at very high levels. I believe within the 610 loop though the price appreciation is more sustainable and the continued retirement of baby boomers will lead many to want to live in town and enjoy the benefits as well as consultants and finance people in energy wanting to live closer to town as they did in the northeast. Land is not as easily available around town and that may allow less downside. Builders though for the most part are overpaying for land currently and that is being subsidized by their scale of building homes. I believe the soft spot in the market is overleveraged builders giving great incentives on new homes within the loop or homes built in the last 10 years by people who cannot afford them and would be willing to take a loss or get out of their payment that shot up because of silly mortgage loans using arms and the like. Cheers!
The housing market in the Beaumont area (especially mid-Jefferson County and Hardin County) is unreal. I don't know about averages, but there were houses that I looked at that went in 2 or 3 days for above asking price. They can't build new houses fast enough to keep up with demand, and move-in ready existing homes are worse. Huge apartment complexes are having every apartment leased before they are finished. A ton of refinery/chemical work, university expansion, and Hurricane Rita made a perfect storm where realtors are making a mint.
So are you saying that we shouldn't expect a decrease in housing prices inside the loop anytime soon? If I am planning on buying a townhouse inside the loop (Midtown specifically) soon, would it be wiser to start looking now or wait 6 months or more?
No way, don't buy now. Although housing is in recession we will see lower prices for the next 1-2 years. Houston has been saved alot of the brunt of the downturn, due to the energy/oil business, but prices should be going down nationwide, including Houston. I study the housing sector quite a bit for my finance work. Here is a recent article about why it is better to rent than buy: http://www.pimco.com/LeftNav/Global...ves/2007/U.S.+Credit+Perspectives-+5-2007.htm and another one: http://www.smartmoney.com/home/living/index.cfm?story=rent I can go more into how how housing futures ( a stock market instrument), how the resetting of ARM's, and how foreclosures will subsequently rise which will cause a 5% drop or more drop of home prices this year, but it might get a bit complicated.
Man I'm not really sure that is the case, at least not in my neighborhood. I live in April Village, which is at Woodland Park Dr and Briar Forest. My next door neighbor has had her house on the market for several months with no bites. It is only listed at $5,000 over what I paid for my house 2 years ago, and hers is 600 sq feet larger! Not good since I was hoping to sell later this year.
I only skimmed through the articles, but will probably read them more in depth later. I read this article a couple days ago about why it is better to buy instead of renting. What are your thoughts on it? http://realestate.msn.com/selling/Article2.aspx?cp-documentid=4706111 When I will buy the townhouse is very flexible because right now I am living at home with my parents. I save alot of money staying at home not having to pay rent. But at the same time, I need my own space and really just want to be living on my own. Also, the commute to work and the city in general really sucks as I live very far North (Spring area).
if the townhome is nice and you think it will have a long life after you are done living there, then buy it.
Where can I buy housing futures? I want to bet it will go down in the next six months and make some $$$ to pay for down payment next year. Thanks in advance!
Housing market varies depending on the area of town. Like Max said, memorial are is always hot. Cypress area, while a desirable market, has become grossly overbuilt. Houses in Stonegate, which is a damn nice community, are taking 4-6 months to sell. If you are a first time home buyer, it is definitely a buyer's market and you can get a lot of bang for your buck. I recommend Montgomery County right now. Taxes are cheap and so is HO insurance. You can get alot more for your money out here than you can in Cypress, Katy or Sugarland.
