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

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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.