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“We are eleven months into 2019 and I have no doubt Houston will be setting new residential real estate records for the year,” stated Raymond Campbell of Houston Home Buyers, a home buyer company in Houston. “The Houston Association of Realtors recently reported a 4.1 percent increase in residential sales volume as compared to 2018, which was a record year itself. And the median price for a Houston home is now $240,900, a 2.5 percent increase for 2019. This is a new historical high for the median price. I expect the final numbers for the year to be very close or the same as the final numbers at the end of November,” he said.
The company’s website, Houston-Home-Buyers.com is a cash home buying company in Houston that contracts homes that are often resold to house investors. These home investors make the needed repairs and upgrades to either sell the houses on the open market or to rent out to tenants. The investors assume all of the real estate market risk and make all of the necessary repairs.
Houston’s residential inventory of homes for sale is currently 3.8 months, a number that has changed little in the past few months. The inventory is likely to fall in December because historically fewer homes are listed for sale during the holiday season. The national housing inventory is currently 3.9 months.
The Texas Workforce Commission has stated that the Houston metro area added more than 80,000 jobs in the past twelve months. It remains to be seen if this rate of job growth can continue but Houston’s favorable business climate is a magnet for companies and workers.
A low interest rate is a key factor in the strength of the local housing market. The most recent 30 year fixed mortgage figure released by Freddie Mac was 3.68 percent. That is more than a full percentage point lower than this time last year. At that time the figure was 4.75 percent. A one percent interest rate difference results in a lower monthly payment of $104 for a median priced house with a ten percent down payment.
Overall sales figures for house buyers in Houston are up 4.1 percent from a year ago. The latest 5 months of 2019 have seen steady upticks in the sales of single family homes. The largest increase in sales volume occurred in the $250,000 – $499,000 segment with a 12.1 percent increase. The $100,000 – $149,000 segment declined with a 6.1 percent decrease. The luxury home market, $750,000 and above, also registered a decline in sales volume to the tune of 9.1 percent.
“For home buyers in Houston I think there is excellent value at these prices because the demand is so strong,” explained Mr. Campbell, “and if you omit the low-priced and luxury-priced segments the mid-market segments look even stronger. My advice is to buy if you are going to live in the house for at least five years. If you are going to live here less than five years it probably a better financial decision to rent.”
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