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.

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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!