What Has Happened in Houston Real Estate This Year?

As we head into 2017, we want you to be informed on what’s happening in the market. Here’s what you should keep an eye on next year.

Selling in the Houston area? Get a market analysis report

Purchasing in the Houston area? Get full MLS access

I am excited to bring you an update on the Houston real estate market as we near the end of 2016. Before we get to that, I just wanted to take a moment to thank everyone so much for their great support this year. I’m grateful for you, and it has been a pleasure to serve you.

Now, I want to talk about two things that have been happening in the real estate market you should be aware of.

The first thing is that the election is over. There has been a big sigh of relief now that it has finished. We have actually seen an uptick in activity since the results came out. Ultimately, we will have to wait until the first of the year to see how the numbers shake out.

The second thing is that increase in interest rates. They have increased significantly in the last 30 to 45 days. They were in the mid-3% range, but are now over 4%. Right now, you can get a 30-year fixed rate loan for 4.25%.

We’ll keep a close eye on things for you.

If you’re a buyer in Houston, be aware that we are expecting a positive movement and gradual increase in price and rates. This will affect affordability, especially for first-time buyers. However, we don’t expect this to have a negative impact on homeowners. If you look back at the last time we had a big interest rate movement, you will see that homes appreciated by 10% as a result. We will keep a close eye on this and we will be back with some projections in January. 

We hope you have a merry Christmas, a happy Hanukkah, and a joyous New Year. Enjoy the holidays and we will see you in 2017. If you have any questions for me in the meantime, I’m just a phone call or email away. Talk to you soon!

Where Is the Houston Market Headed?

What's going on in the Houston market? I've got your monthly update, plus some tips for those who are considering selling their home over the fall or winter months.

Selling in the Houston area? Get a market analysis report

Purchasing in the Houston area? Get full MLS access

As you may have already seen, it's been a very interesting year in the Houston real estate market.

August was a huge, record-breaking month, and in September, we were down by mere fractions. We're still waiting for this October's numbers still, but we know we're up on a year over year basis. The average sales price of Houston homes is up 2% from last year, so we're still seeing positive things in the market.

We do, however, think Upstream Energy is going to continue to be a bit of a drag on the market. Oil is back down, so there could be issues to work through into next year. When it comes to inventory, we're currently at about four months, which is very low compared to the rest of the nation. To get a good idea of the market, though, you have to break it down by neighborhood. Some neighborhoods have very low inventory while others (especially in the oil sector) have very high inventory.

I also wanted to address the people who are thinking about selling their homes and considering waiting until spring to do so. This may or may not be the right thing to do. If you're considering selling over the winter, I'd advise you to look at the inventory you're competing against. How many signs are up in your neighbors' yards? Some people think that winter is a bad time to sell, but we don't have harsh winters here.

Winter could actually be the perfect time to sell.

The reality is that winter could be a great time for you to sell. Many times, December is our biggest month. That's because winter buyers are truly motivated buyers; people don't just go out and look at homes for fun between Thanksgiving and New Year's. Buyers are also more serious at this time because they want to get their homestead exemption for this year's taxes; you need to be in the home by January 1st to do that.

And on a final note, I have an interesting factoid for you: for the seventh year in a row, Houston is the number one destination for U-Haul trucks. You can look at U-Haul maps and see that there are a ton of lines coming in and not many going out, so we're still a go-to city!

If you have any questions about these topics or you're thinking about buying or selling a home in the Houston area, give me a call or send me an email today. I'd love to hear from you!

How Do Property Values Differ on Your Tax Bill?

When it comes to your tax bill, the difference between your property’s market value and its appraised value is that the appraised value is the one you pay taxes on. 

Selling in the Houston area? Get a market analysis report

Purchasing in the Houston area? Get full MLS access

What’s the difference between the market value and the appraised value of your property when you look at a tax bill?

The market value is what the country district thinks the property will sell for. They determine this by looking at comparable properties around the area. The appraised value is the value that you pay taxes on. 

The appraised value could be lower based on any exemptions you might have. If you have a homestead exemption, for example, you’re going to be capped based on that value increasing 10% every year. If you’re not protesting your taxes, then that value could go up considerably. 

The appraised value could be lower based on any exemptions you might have.

You can’t protest taxes now—that happens after the beginning of next year when the new values come out, and it’s what the property is deemed to be worth on January 1st. The market has slowed a bit this year, so we’ll have to see what the values show next year. 

If you have any more questions regarding this topic, please feel free to give me a call or send me an email. I look forward to hearing from you! 

Tips for Anyone That May Be in or Near Flood Areas

It’s no secret that recent flooding has devastated homes in the Houston area. Flood insurance has become a hot topic as of late, so we invited Mr. Li-Hsi “Leash” Yu, the president of Agency Yu, Inc., to come and talk to us about some benefits of having flood insurance that you may not even know you have. 

It’s easy to say everyone should buy flood insurance, so today we’re going to discuss the severe repetitive loss database. If your home has flooded multiple times in the past, it may be on this database. It sounds bad, but it was created by FEMA to watch your claim activity and has some great benefits. If your home has flooded more than four times since 1978 and two of those floods were within 10 years of each other and repairs costed more than $5,000, your house is more than likely already on the list.

If your home is on the list, FEMA may provide funds to raise your home, buy it back, or make it less susceptible to floods in general. It would behoove a homeowner or a person that’s about to buy a home to see if the address is on the severe repetitive loss database. It could be very beneficial in the decision-making process.

If you are on the list, you should have gotten notice at renewal.

If you are on the list, you should have gotten notice at renewal of your flood insurance. If you haven’t received one or you’re curious if your home may be on the list, ask your insurance agent. If you’re buying a home and getting a flood insurance quote, it should disclose whether or not the home is on the database. 

This isn’t a new program, it’s been around for quite a while. However, with the recent multiple floods, we think it’s a good thing for you to keep on your mind. One important note about the severe repetitive loss database is that if two floods happened within 10 days of each other, FEMA only considers that as one claim.

If you or someone you know has had to deal with repetitive flooding, you should give Leash a call. He can be reached at (713)-688-8881 or Leash@AgencyYu.com

If you have any other questions for us or if you’re looking to buy or sell a home in Houston, give us a call or send us an email. We look forward to hearing from you.

How We Impressed Mark By Being Proactive

To contact Mike Gray, call 832-428-6453 or email Mike@homesfromhouston.com.

Could Your Stucco Be Damaging Your Houston Home?

There are many great Houston area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 832-428-6453 for a FREE home buying or selling consultation to answer any of your real estate questions.

We've had a lot of questions lately about stucco from buyers and sellers in Houston, so I wanted to address the topic today. Today I'm joined by Kevin Harbison from Stucco Spec, our go-to guy for home inspections.

First we want to differentiate between the two types of stucco: cement-based (which we refer to as real stucco) and synthetic stucco (referred to as EIFS) which is made out of foam and a thin rendering of cement. The real stucco is actually concrete, and is thicker.

Most people don't dislike stucco as a material itself but tend to dislike the way it is applied and maintained. The problem with stucco is water intrusion. For example, if a window is not caulked properly, water can get in behind the stucco and cause structural damage. Another important detail on homes for preventing water intrusion is flashing, which kicks away water and keeps it away from the house.

"Windows should be resealed every five to six years."

Heat plays a factor here in Houston as well. It takes a toll on caulking, so windows should be resealed every five to six years, according to Kevin. There are specific sealants used, so he recommends always using a professional waterproofing company. If you have a stucco home that hasn't received maintenance in six to 10 years, you want to walk around the home for a self-inspection. Check that your sealants are intact and soil is not touching the bottom of the stucco walls. You can always hire a proven professional like Kevin to make sure the inspection is done right.

If you have more questions about stucco or you're interested in a stucco inspection, you can reach Kevin through Stucco Spec's website. If you have real estate questions or are thinking about buying or selling a home, give me a call and let's talk soon!

How We Impressed Margie By Selling Her House Quickly

Tell us about your experience working with the Mike Gray Home Selling Team?

"He sold my house very quickly. One of the offers on my house fell through, and he had a new buyer for me within 48 hours, maybe less than that. He's good."

To contact Mike Gray, call 832-428-6453 or email Mike@homesfromhouston.com.

How Houston’s Market Rate Compares Nationally

There are many great Houston area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 832-428-6453 for a FREE home buying or selling consultation to answer any of your real estate questions.

There’s been a lot of news lately concerning the national real estate market increase. The market is getting stronger. What I want to tell you today is how this affects Houston’s own real estate market by comparing how its recent history has fared against national trends.

Nationally, from 2001-2005, we underwent a boom. From 2006-2010, the cycle reversed and we experienced a bust. From 2011-2015, we were in recovery mode. Projections show that, by all accounts, 2016-2020 will be another boom. This bounce back is expected to be the result of the number of homes sold and the general demand of housing rather than an increase in pricing.  

"Through the years, Houston’s market remained steady."

In some cases, Houston’s regional market worked against this national ebb and flow. But through these time periods, overall performance remained steady. No extreme highs or extreme lows. This year has been no different, thanks in large part to the resolve of the greater economy in general.

I hope this comparison gives you a more comprehensive idea of what to expect going forward. Be sure to click on the video for a more in-depth, year-by-year statistical analysis. If you have questions about your specific neighborhood or area, we’d be happy to answer them. Just shoot us an email or give us a call.

The Latest News in Houston Real Estate

There are many great Houston area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 832-428-6453 for a FREE home buying or selling consultation to answer any of your real estate questions.

This year, the numbers for the first quarter are down compared to last year. 2015 was a record year, so we anticipated these differences.

The $1 million and above price range is struggling right now. This category has seen an increase in inventory and a slowdown in sales. In fact, some areas in this price range have up to two years of inventory.

If you are trying to sell a home in that market, understand you should price according to market trends. Price according to where the market is going, not where the market has been. Otherwise, your property can sit on the market much longer than you anticipate.

On the other hand, homes priced under $500,000 are in a hot market! Homes are selling quickly. Depending on the part of town you’re in, you may be seeing a lot of multiple offer situations.

This year, we predict home sales will decrease around 10% compared to 2015. Overall, the market favors buyers. Buyers will have more time to look at properties and ultimately, have more options to choose from. We are headed toward a more balanced market. Since Houston is so large, the market varies depending on where you are.

If you’re a buyer, now is a great time to buy. If you’re a seller, home prices are still trending upward, so it’s still a great time to sell. Prices aren’t appreciating as quickly as they did last year.

If you have any other questions, give me a call or send me an email. Additionally, if you were unfortunate enough to get water damage from all the rain last week, please reach out to us. We can put you in touch with contractors to help you with that. I look forward to hearing from you!

How to Avoid Paying Higher Taxes on Your Houston Home

There are many great Houston area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 832-428-6453 for a FREE home buying or selling consultation to answer any of your real estate questions.

Tax season is here, and the biggest questions we’ve received lately have to do with protesting your taxes. If you’ve seen what I’ve seen, property tax assessments in the Houston area have gone up again. My short answer? Yes, you should protest your property taxes! I do every year because I want to keep my bases low.

There are a few options out there for people who want to protest their taxes. First, you can do it on your own, which means you’re going to go, sit down with HCAD, and try to convince them why your property taxes are too high. I don’t have the time to do this, so I usually hire a third party to do it for me. I have had some mixed success going that route, but I feel it’s worth it.

Although we’re in a normalizing market, property taxes have continued to go up. If you have a homesteaded property, they can go up no more than 10% plus any improvements you’ve made. In some cases, improvements to your home can increase your tax burden substantially. Even if you haven’t made improvements, these higher assessments will cost more and more money as the years go by.

In short, we highly recommend that everyone contests their property taxes, especially if you have the time. If you’re interested in a third party to protest your taxes on your behalf, I would be happy to put you in touch with a great company I use. They typically charge 50% of what they end up saving you; if they don’t save you any money, you don’t have to pay them anything, so it’s not a bad deal.

If you have questions about this or any other topic, please don’t hesitate to reach out to us. We would love to hear from you soon!

Don’t Miss this Expert Analysis of Houston Real Estate

There are many great Houston area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at 832-428-6453 for a FREE home buying or selling consultation to answer any of your real estate questions.

So far in 2016 the market has been looking quite hot. This is difficult for me to say, though, because we have just come off two white-hot years in this market.

One thing to keep in mind is that Houston functions like a group of cities, and that there are many micro-markets that will be performing differently than other parts of the city. For example, there has been a slowdown in the luxury markets, but this only seems to be happening in the oil-driven areas.

The market that I’m seeing right now is similar to the market that we saw last year with lots of growth and appreciation. More homes have come onto the market and inventory has increased. This should help to stabilize prices in the market, because for a while they were increasing at unsustainable rates. Another trend I’m seeing is that the strongest markets in Houston are the most diversified, but they also have the least amount of inventory.

My word of advice to home sellers is to price with the current market trends. Don’t look back six months ago, because even that is too long ago. Buyers are savvy and know when they are getting a good deal or not.

If you have any questions, don’t be afraid to ask me!