Houston Area Home Prices Still Rising
Houston home prices are still posting gains despite the oil slump, according to a report published in the Houston Business Journal. Home prices in the Houston metropolitan area increased 3.9% year-over-year in April, including distressed home sales.
What is notable in the statistics, is that they include distressed home sales, which include short sales and foreclosures. Typically, distressed home sales have lower price thresholds than the rest of the market. The overall impact of distressed home sales depends on their volume. So the larger question becomes, are distressed home sales on the rise? The answer could help us predict the future direction of our housing market.
Taking a look at distress home volumes, there are about 2,265 properties in Houston in some stage of foreclosure as of April 2016. This is 10% lower than the prior month – and 19% lower than April 2015!
This is important to understand, and a key element to keep an eye on. As long as our distressed home inventory remains a relatively small portion of the Houston real estate market, we are unlikely to see negative domino effects affecting traditional home sales.
It’s also valid to say that actual home price gains are probably a bit higher than 3.9%, when you take distressed sales out of the equation.
Houston’s real estate market is naturally concerned about the performance of the energy sector. But the sky is not falling! In fact, Houston’s home price gains are good enough to keep us among the top housing markets, behind some expensive locales such as Los Angeles, New York City, Boston and San Francisco.
Of course, the real estate market is always changing, and some Houston neighborhoods are in stronger demand than others. Certain home price points are also seeing longer days-on-market than others. The best way to find out what your home is worth on the market today, is to contact us for a comparative market analysis! There is no charge, and no obligation.
Looking for more information? We’re here to help you! Obtaining the expert advice of the KW Energy Corridor Team is the first step in a successful home sale! We will be happy to provide you with custom strategies for top-dollar offers! We also have a vast network of service professionals to help you prepare your home for the market.
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079