Real estate predictions in Houston for 2016
In recent years the Texas economy has been booming. If you have sold a home in the last couple of years, you are aware that Houston has been considered a seller’s market in the past. The price of oil greatly effects the economy of Houston. With oil prices dropping, Houston residents are wondering how that could affect the housing market. In the past, the local real estate market has been flourishing. Houston residents are now wondering if that could change in 2016.
Oil prices are fueling the Texas economy.
Last summer, oil prices hit a low of $42 per barrel and that startled residents of Texas. Energy companies have experienced some downsizing and many oil company’s’ profits will continue to decline. The state of Texas lost 250,000 energy jobs by the end of November 2015. The one year forecast for oil in 2016 is $39 per barrel. Even with the oil prices dropping in 2015, the economy of Texas stayed strong. The unemployment rate for the state of Texas was 4.2 % in April of last year. The unemployment rate for Houston was even lower than the average for the state at 3.7%. This data shows that the residents of Houston have learned to adapt and take life by the horns, regardless of any road bumps or drawbacks. It is predicted that in 2016, the industries that will be a driving force in the Houston economy will be the teaching, healthcare and automotive industries.
Homes could be less expensive.
Until recently, Houston has not seen a drop in housing prices since 2012. The Texas real estate market stayed resilient throughout most of 2015, despite the drop in oil prices. Home sales began to fall in October and November of last year. According to the Houston Association of Realtors®, by November single family home sales fell by 10.5%. Homes priced between $150,000 and $250,000 were the most sought after homes in Houston.
What it all means
The market in the state of Texas is not slowing down, nor would it be fair to say it is experiencing a decline. For now, it is merely a flattening out of the rapid growth the state has experienced in the past Texas has experienced extreme growth over the past couple of years and the forecast for 2016 is not a gloomy one. The price adjustments may even out the playing field on the past sellers’ market in Houston. Lower home prices combined with good interest rates makes it a great time to buy a home in Houston. 2016 will be a great year to buy a home in Houston when demand is lower. Buyers are likely to no longer be at the mercy of sellers this year.
If 2016 leaves you in need to sell your home fast in Houston, you can count on the #1 home buyer in the U.S. Contact us today for a free quote.