HAR chair discusses opportunities for people moving to Houston — Part 1
The Houston real estate market enjoyed another record year in 2019 and seems to be well positioned for continued prosperity in 2020.
The robust market, coupled with low interest rates, is good news for the many people who will be moving to the Houston area and purchasing homes in the coming months.
According to John Nugent, the 2020 chair of the Houston Association of Realtors (HAR) and a broker associate with RE/MAX Space Center, the Houston area is full of opportunities.
During a recent interview, he discussed those opportunities, as well as his thoughts on the health of the local market.
Following are excerpts from our conversation:
MS: What opportunities exist for people who are moving to the Houston area right now?
JN: Houston is a dynamic city and a growing city, and I see a multitude of opportunities for people who are moving here. Depending on where people are coming from, we still have some of the most affordable housing in the country. We also have a wide range of products to select from in various areas, whether someone wants to be close to work or whether they are looking to live in a specific school district. We have some really great educational opportunities here too, and so it’s a great place to raise families.
It’s also a city that offers options for young people. Millennials can come here and explore their different avenues of interest. And, from an entertainment standpoint, whatever it is that someone is interested in, we have it here in the greater Houston area. So, I think there are a lot of wonderful opportunities for people who are moving here.
MS: Are we likely to see more properties coming on the market now that the holidays are behind us?
JN: Traditionally, nobody likes to move during the holiday season, but after the first of the year things tend to pick up more than they were during the holidays. Our inventory is low at 3.8 months, with six months of inventory being a balanced market. So, it tends to be somewhat of a seller’s market at this point. My guess is that the market is going to get a little tighter, though, because of the inventory of affordable homes.
MS: Can you elaborate on the affordability issue, and the challenge that might present for people who are moving here?
JN: I think we are having an inventory issue with homes that are in an affordable range, which I think is $150,000 to $275,000. I think that there is a shortage of homes in that category, and I think it’s going to become more pronounced. That’s because we’re just not building enough new homes in that price range. The market tends to absorb that inventory, which puts more pressure on the market to have homes in that price range. So, I think the market will tighten up in that area this year.
MS: What are your thoughts on the upper end of the market for 2020?
JN: I think that the upper end of the market will be slower, and that homes that are priced over $1 million are going to be slow to sell.
MS: Do you anticipate the upcoming presidential election to impact local real estate activity?
JN: From my perspective, not much is going to change due to the upcoming election cycle, particularly the presidential election. People buy and sell real estate for a variety of reasons. Mainly they buy because they need a place to live, and that decision is going to be predicated on that need rather than some political event that is happening out there.
So, I think the real estate industry is going to be unaffected in that sense, but I think that some of the peripheral dynamics may come into play, such as the economy associated with the political environment.
MS: What message would you like to convey to people who are new to the Houston market in terms of the value that a Realtor brings to the home-buying process?
JN: The real estate landscape is definitely changing, and I think it’s the role of the Realtor to educate the consumers as to what their options are. So, people who are moving here need to work with a professional, seasoned, knowledgeable Realtor who can guide them in the direction that that they would like to go, and then counsel them along the way as to what their options are.
Next week, look for Part 2 of my interview with John Nugent, as he shares more of his perspectives on the Houston market.
Michelle Sandlin is an awardwinning writer, journalist and global mobility industry expert. Follow her on Facebook: www.facebook.com/TheMichelleSandlin and on Twitter: @MichelleSandlin. Also visit “On the Move” at blog.chron.com/onthemove.