Why is Houston considered a neutral housing market by a local real estate expert?
The homes for sale in Houston are a popular choice for many people who are looking to move to Texas. Residences come in a variety of sizes and feature a collection of amenities that make them attractive to many newcomers.
According to MyFoxHouston, September 2012 marked the 15th consecutive month in which Houston posted an increase in its residential property sales. However, it's difficult for some local real estate professionals to determine if the present market favors buyers or sellers.
"It's good and bad," a local real estate expert told the news outlet. "If you're a buyer, there's fewer [properties] to choose from but if you're a seller, you're gonna sell your house faster for more money."
Take a look at some of the factors that currently influence Houston residents, and has led the aforementioned expert to declare this city's housing market to be "neutral" for buyers and sellers.
Interest rates available to homebuyers
Many property buyers are considering new homes because interest rates have reached historic lows. Freddie Mac reports that homebuyers could receive a 3.49 percent interest rate on a 30-year fixed-term mortgages as of September 20, 2012. Meanwhile, those buyers who are interested in the homes available in Houston might also qualify for 15-year fixed-rate mortgages at 2.77 percent.
The national economy typically affects interest rates, and improvement with the economy could lead these percentages to rise over the next few months. Property buyers who pursue fixed-term mortgages could find that they are able to acquire high-quality homes that could increase in value.
Property buyers active in the real estate market
While current interest rates are lower than they have been in the past, the Houston home inventory has declined. This could help property sellers obtain offers at or near their initial asking prices.
The Houston Business Journal notes that Houston home values have risen 5.8 percent in the last five years. Since more people have been moving to the city, property values have increased due to interest in the market, which could remain steady.
Houston is an appealing place to live for a number of reasons, and the recent rise in home values could help the city draw more residents.