Houston real estate market reflects lowest inventory level since 2008
The number of homes for sale in Houston continues to decrease as the local economy remains booming. Data from the Houston Association of Realtors (HAR) shows that home sales have increased in February 2012 - the ninth consecutive month this has happened, according to the Bellaire Examiner. Additionally, the city's inventory level is at its lowest since 2008 as the HAR's multiple listing service notes that foreclosed home sales increased by 21.1 percent since February 2011.
Rising home purchases could make a significant difference on the local economy. New residents may help attract more businesses to the area, which could lead to increasing home values in the future.
HAR Chairman Wayne A. Stroman told the news source that he anticipates the trend will continue in upcoming months.
"It gives us cause for optimism as we look ahead to the typically active spring and summer buying months," Stroman said.
However, there may be an anomaly in the HAR's statistics - one that could benefit those interested in moving to Houston. The HAR study revealed home prices fell 4.6 percent when compared to last February, dropping to $201,945, and median prices were down 0.7 percent, to $149,900.
You can find excellent values on properties in Houston if you purchase them in this buyer's market. While home prices are currently low, the local economy could be impacted significantly by the rising number of property acquisitions.
Reviewing your budget can help you determine what mortgage options work best for you. For example, a fixed-rate mortgage could prove advantageous if you are looking to make regular monthly payments over the life of your loan.
This allowance gives you the opportunity to pay the same amount every period. Regardless of the economy, the rate will remain the same for the life of the loan. Banks are offering low interest rates currently on this option, with many available between 2 and 4 percent. You may maximize your investment with low affordable payments, or you may prefer an adjustable-rate alternative.
Adjustable-rate mortgages feature periodic interest rate changes, so a buyer may be able to receive a lower interest rate that rises over the life of the loan. For instance, you could receive a 5/1 adjustable-rate mortgage with a fixed rate that remains intact for the first five years, then increases every year after. This allows you to save money when you first move to Houston property, and your payments will gradually increase as you get settled into your home.
Check out the wide range of financing options available to purchase one of many Houston homes for sale.