10 Warning Signs the Housing Boom May Leave Houston Behind
In most areas of the country, it’s a seller’s Market right now. But in some neighborhoods, home values hit rock-bottom in 2012 and still haven’t fully recovered. Should you wait for prices to rise in your area, or sell your house now?
Low mortgage rates have recently helped lift home selling prices in most areas of the country. That’s because buyers who can afford to take out a larger mortgage are more likely to spend more. Homes are also selling faster. Nationwide, the average home spends 68 days on the market, down from 96 days at the beginning of the year.
But now that the Federal Reserve is signaling rate increases, that could drive up mortgage rates, making it harder for buyers to qualify. Ultimately, Houston home prices could cool down before some homeowners are able to sell.
The Houston Housing Market Is Booming, But Not Everywhere
New listings are on the rise in the Houston metro area. In April 2017, there were nearly 25,000 active listings. That’s up 3 percent over the prior year, according to Realtor.com, indicating that more homeowners are willing to sell.
Prices are also rising over last month. The median list price of homes in the Houston area was $316,000, up 2 percent from the prior month, but down 4 percent from the prior year. That’s still considerably higher than the United States median list price of $260,000.
But it all depends on your location. Homes in areas such as Kashmere Gardens and Trinity tend to list for under $65,000, while homes in Hedwig Village and Hunters Creek Village routinely fetch prices upward of $1.6 million.
Possibly as a result of lower prices, Houston homes sold much more briskly, spending an average of 51 days on the market. That’s 6 percent faster than the prior year, and 18 percent faster than the prior month. It’s also more than two weeks faster than the nationwide average of 68 days.
New home construction in Houston is booming, which points to an increase in the number of homes for sale in 2017. With so much new inventory on the market, sales may continue to go up, but prices could slow down or flatten.
10 Warning Signs of Falling Home Prices
Should you sell your home now, or wait to see whether prices will improve? Look for these Warning Signs that home values in your neighborhood may be about to fall.
- Garbage and litter accumulating on lawns, streets, and parks.
- News reports that the local schools are under-performing.
- A grocery store closes or relocates elsewhere.
- A hospital or local medical center closes.
- Fewer families with kids live in the neighborhood.
- An anchor store (major retailer) at the nearest mall closes.
- A sudden increase in “For Rent” signs.
- Unexpected property tax hike.
- Houses appear to be vacant or abandoned.
- Homes sit on the market without selling.
If you see any of these red flags near you, that could signal trouble. It may be smarter to sell your home now, rather than wait too long and risk losing value. Contact HomeVestors to find out how you can get a cash offer and sell your home quickly, before prices start to go down.
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