Adjusting Your Home Buying Strategy for a Slowing Market in Houston, TX

4.13.2023 10:31 am 0 Comment(s)

buying in a slow market in Houston

The real estate market plays a big role in the US economy, and changes in house prices can affect our money matters. Houston, TX is currently going through a slow housing market, and some people might be unsure about buying a home. But don't worry! The Houston market has been pretty strong during this time, and this blog post will show you how buying a home now can be a smart move.

Understanding Houston's real estate market

A slow market usually means lower prices, more motivated sellers, and helpful government incentives like lower interest rates. It might be tempting to wait until the market is at its lowest point, but it's really hard to know when that will happen. Plus, even though home sales have dropped, Houston's housing market has managed to keep prices steady, making it a good choice for potential homeowners.


Recent reports show that home sales in Houston have fallen by almost 30% in January compared to the same month in 2022. Factors like high mortgage rates, inflation, and worries about a possible recession have made people wait for better market conditions. Mortgage rates have gone down a bit, but they're still over 6%, which is double what they were two years ago.


But here's the interesting part - even with fewer sales, home prices in Houston have stayed pretty stable. The median price of a home in January went up by 1.6% compared to the previous year, reaching $315,000. The average price also increased, reaching nearly $382,000. So, waiting for a big drop in prices might not be the best plan, since the market doesn't seem likely to change that much.


Perks of buying in a slow market

  • Steady prices: Houston's stable home prices can give potential buyers peace of mind, as they don't have to worry about a sudden drop in property value. According to the Houston Association of Realtors (HAR), there are indications that the housing market may be improving. Comparing January's home sales to the pre-pandemic levels in January 2020, the decline is only 4.6 percent. Home sales during the pandemic soared to unprecedented heights in Houston and nationwide, as buyers capitalized on historically low mortgage rates. In January, the home inventory, a crucial factor in the sales process, increased to 2.7 months' worth of available housing. Industry professionals suggest that a balanced market typically has a supply of four to six months. A more limited inventory generally leads to quicker home sales and elevated prices.
  • Less competition: With fewer people looking for homes, you might have an easier time finding the perfect place and negotiating a better deal.
  • A good long-term investment: Houston's housing market is strong and steady, making it a great choice for those looking to invest in a home for the long run.

Thinking about your long-term goals

Buying a home in a slow market isn't for everyone, especially if you're looking to make a quick profit. It's a better fit for people who plan to live in the house for a long time and can wait for the market to get better. If you're not comfortable with the idea of your home's value going down at first, it might be better to wait for a stronger market.


Dealing with hesitant sellers

Even though buying in a slow market can be great, some sellers might be nervous about listing their homes. They might worry about not making enough money or having their home on the market for a long time. This can make it harder to find the perfect place, so it's important to be patient and keep looking.


Conclusion

Choosing to buy a home during a slow market in Houston, TX can be a wise decision for long-term homeowners. By recognizing the advantages of purchasing in a slow market and concentrating on your long-term objectives, you may be able to find your dream home at a more affordable price. Patience and persistence are key, as they can help you seize the opportunities this market presents.

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