Houston real estate leaders remain optimistic about local market
Although the Houston area has suffered significant layoffs this year, resulting from the downturn within the energy sector, the local real estate market has remained very stable.
That speaks well for the diversity of the city and its economy, which is not solely dependent on the price of oil. That has been a recurring theme this year, and an important message for people who are new to Houston or will be relocating here after the first of the year.
While it is difficult to predict what the coming year has instore for the Houston market, many leaders within the local real estate community have a shared sentiment of optimism, which spells increased opportunities for home buyers.
Here’s what they had to say:
Kirsten Abney, senior vice president, Heritage Texas Properties
“Our real estate market continues to show healthy signs and inventory levels continue to increase, which provides more options for buyers. Homes from $150,000 to $500,000 continue to see positive gains, and homes priced correctly and in good condition can still move very quickly. Buyers should be prepared to move forward with an offer if they find a property they like.
“Interest rates have increased slightly over the past few weeks. If this trend continues, we may see buyers move forward with their purchase decisions more quickly. These are all positive signs for our market.”
Lynn Breedlove, relocation director, Berkshire Hathaway HomeServices Premier Properties
“Houston has sustained a year that could have been very difficult for a real estate market. Even with the oil industry decline, and the slowdown due to the election year, our real estate market has remained steady.
“Our sales have been up year-overyear, and our inventory has increased. This sets the stage for people who are moving to Houston, which is still a very affordable city to buy a home. “While people coming into the Houston market are likely to see higher rates, interest rates are still at historical lows. Higher interest rates will affect the buying power for some, but not enough to upset the market.”
Pattie Huey, director, relocation and business development, Better Homes and Gardens Real Estate, Gary Greene
“Like its people, the Houston market proved once again to be quite resilient. In 2016, Houston survived Spring flooding and a challenging job market. Both affected home sales in pockets around the city, but overall, the market remained strong. In October, we had 3.8-months of available inventory, and a 6.3 percent year-over-year increase in the median price for a single-family home.
“With the election and its uncertainty behind us, the price of oil slowly increasing, and higher interest rates looming, 2017 promises an active housing market, as the job market stabilizes and hesitant buyers jump in before rates increase.”
Anne Incorvia, executive vice president, John Daugherty, Realtors
“We see the outlook for buyers who are coming into the Houston market to be positive. Houston’s diverse economy, strong population growth, and quality of life will continue to fuel residential sales. Real Estate is a local market, and there will be some areas where buyers will find a shortage of inventory. Houston is still below the national average for the supply of homes.
“The four main sectors of the Houston economy — energy, medical, the port and NASA — will continue to keep the city set for growth. Our market offers great value, and Houston is a vibrant city to call home.”
Mary Piper, director of relocation and operations, Bernstein Realty
“We are looking forward to 2017 with optimism. While we did see a difference in oil related relocation in Houston during 2016, we also saw continued movement within other industries.
“We feel that the inventory of homes will continue to increase after the new year, with both the election and holiday season behind us. We have been pleasantly surprised, as we are not experiencing the anticipated year-end slowdown, and we feel that this is propelling us into the new year.”
Ed Wolff, president, Beth Wolff Realtors, Real Living
“I believe Houston has weathered the dramatic changes in some of our key industries well. The energy sector has retooled to handle production at lower values, the medical industry is continuing to solidify its relevance on a national and global scale, and our port will continue to be a major distribution center for years to come.
“Property values are stable and should return to the typical 3 to 5 percent annual level of appreciation that they have seen over time.
“Interest rates are rising; however, that still doesn’t change the value of homeownership. I see Houston’s real estate future as bright and the value of our great city is strong and getting stronger.”
Michelle Sandlin is an award-winning writer, journalist and global mobility industry expert. Her work is frequently featured in Worldwide ERC’s Mobility magazine, and in various business and industry related publications and corporate blogs. Follow her on Facebook: www.facebook.com/TheMichelleSandlin and on Twitter: @ MichelleSandlin. Also visit “On the Move” at blog. chron.com/onthemove.