A midyear look at Houston’s real estate market
What newcomers need to know
Summertime always draws more newcomers to the Houston area, whether they are moving here through a corporate relocation or by personal choice.
So, what does the current Houston real estate market look like, and what new opportunities await those who will be moving here?
According to the May MLS report released by the Houston Association of Realtors, the Houston market experienced a rebound in April, with home sales jumping nearly 7 percent.
Additionally, the report showed that the average and median prices for a single-family home both reached all-time highs. The median price increased 5.3 percent to $240,000, while the average price increased 5.2 percent to $305,092.
The report also stated that homes priced in the $500,000 to $750,000 range were the best-performing segment of the market, with a 30 percent jump. Likewise, homes priced at $750,000 and above were up 5 percent.
This speaks well to the strength of the Houston market, which helps to dispel any fears that might remain among home buyers following Hurricane Harvey.
Tim Surratt, a Realtor with Greenwood King Properties, said that one of the aspects that creates opportunity for newcomers is that there are fewer local home buyers in the market right now.
“In the summertime in general, there are not as many buyers looking for houses, so people who are relocating here don’t have as many local buyers competing with them for properties. I think local buyers do their house hunting in the early spring, so that they can leave town and go on their vacations in the summer,” said Surratt.
He added that before his relocation clients even come to Houston for their home-finding trips, he tries to set their expectations about the current market conditions.
“That is really important for people who are relocating, because they might see a home that they like online, but it might already be sold by the time they get here,” Surratt said. “The thing about Houston is that there is always going to be another house, so I tell my relocation clients not to sweat if one house sells, because we will find another one that is right for them.”
He said that one of the most notable trends that he is seeing among relocation buyers as well as local buyers this year, is their desire for vertical living.
“I’ve sold more highrises this year already than I have in many years combined. High-rise living offers an easy lifestyle. Also, the density in Houston has gotten so great, and some really great high-rises have been built. So, I think it’s a remarkable time to live in Houston with all of the organic growth of the inner city,” Surratt said.
Anne Incorvia, executive vice president of John Daugherty, Realtors, said that the most important thing for people to keep in mind when they are moving to Houston is that real estate is a local market.
“The challenge is getting buyers and sellers to understand how localized real estate is, and to understand that each community is different. So, when moving to Houston, you really have to work with a good, experienced real estate agent, and hone in on the areas where you are looking,” Incorvia said.
She added that it’s also important for relocation buyers to understand that while some areas of Houston were impacted by the flooding from Hurricane Harvey, that many others were not. But, she said that the market as a whole is rebounding.
“Houston has rebounded in the oil and gas sector, and the Port of Houston and the Texas Medical Center will continue to be major factors for the Houston economy,” Incorvia said. “In the real estate sector, Houston is becoming more of a balanced market, but some areas have more inventory than others. What we are seeing with relocation buyers is that they want homes that are move-in ready, and not homes with deferred maintenance.”
She emphasized that Houston home prices are still very reasonable compared to other major metropolitan areas of the country, and that Houston continues to be a high-destination relocation city.
“The American dream of homeownership is alive and well here in Houston, and this city has so much to offer. Houston continues to be a top relocation city, not just for corporate relocations, but for individuals who want to move here,” Incorvia said.
She agreed with Surratt and said that the vertical landscape of Houston has really changed because of the recent construction of many residential highrise buildings.
“People who are moving here don’t always realize how large Houston really is, and all of the things that we have to offer,” Incorvia said.