A Look at the Current Real Estate Market in Houston

It seems as if the topic of conversation lately has revolved around the health of the current real estate market. Some find the results to be shocking for a couple of reasons. First, the recent recession did a number on the economy and adversely greatly affected the real estate market; we weren't sure if we would see it bounce back any time soon, let alone a few years. Second, the Houston real estate market had been climbing steadily for several years before the recession while other major markets had skyrocketed. In Houston today, we are beginning to see a quickly-rising positive trend in our real estate market. Here are a few reasons why Houstonians can continue to see this positive trend in the years to come.

1. Increase in home prices - To put it simply, the supply of homes is low and the demand for homes is high. There are many more buyers than sellers, and we can expect to see as much as a 5% increase in home prices in the years to follow.

2. Food retail chains are expanding - Where food retail stores open, new home construction either precedes or follows. The Houston area can expect to see many food retail chain stores popping up everywhere, such as HEB, Krogers, and Whole Foods.

3. Rising mortgage rates - Due to the current home demand, we can also expect to see a slight increase in mortgage rates in the coming years. The current rate is around 3.5%, and is expected to average at about 4.6% by next year.

4. More apartments - New construction for apartment homes is spreading like wildfire throughout the Houston, area, especially in the heart of Houston. Job creation is fueling the need for more apartments, and this likely will increase new home construction as well. 

5. Less office space - Empty office space is as low as 5% in some areas, which makes renting office space more expensive. 

If you or someone you know has a question about real estate, please contact me using the information provided below.

Arthur Confait
Email: arthurconfait@gmail.com
Website: CLICK HERE