2017 Houston Real Estate Market Trends and the Impact on Home Buyers and Sellers
I’m excited to announce that the Houston Real Estate Market, as with most major metropolitans across the nation, is off to an impressive start. Demand for Houston homes has grown to an all time high with Realtors selling a record number of homes in 2016. The same resilience and positive momentum that carried us through 2016. Even amidst a struggling energy sector, momentum will continue. It’s expected to be a great year for the Houston Real Estate Market!
Houston Real Estate Market Trends
If you’re in the market to buy or sell a home in Houston, this might be a great year. Here are a few real estate trends that you should be aware of.
- Continued Increase in Home Prices
The best news for homeowners and sellers is that home prices in Houston are up by 7.5 percent. We expect home prices to continue rising through most of 2017, favoring sellers.
- Mortgage Interest Rates on the Rise
Even before the Federal Reserve announced the rise of short-term interest rates, mortgage rates in Houston were already expected to increase in 2017. With two rate expansions occurring during the first quarter, this brings the national rate to about 4.5 percent. While this news has the potential to impact home sales, don’t fret. The overall effect on the market should be overshadowed by the increase in home prices and job growth.
- More Millennials Becoming Homeowners
While the most recent recession may have left many millennials with a bad taste, with regard to homeownership, many market experts are predicting 2017 to be the first year that this generation will make up the majority of new home buyers.
National Real Estate Market Trends
Most real estate experts and professionals are predicting a strong year ahead for the U.S. housing market in 2017; however, there appears to be a few mixed emotions regarding the impact on buyers and sellers.
- Homes Selling Faster
The number of days on market was down for the 99th consecutive month to a new low of 66 days in January 2017, which is still significantly longer than what most Realtors and sellers would like to see; however, buyers can benefit from the time available to consider options.
- Housing Affordability Remains Low
As with local market trends, millennials are expected to also dominate the national market, but affordability may become an issue, as rising interest rates and housing prices make owning a home in the U.S. less affordable.
- New Construction Increases
low resale inventory is expected to drive buyers in the new-home market, but tight labor supplies, more regulations and increased lot costs, are expected to make the time to market a slow process.
To learn more about local real estate trends, visit HAR.com.