It can be difficult to make exact predictions when it comes to economic behavior, however, if Houston’s recent activity is any indication Houston is hot and it doesn’t look like it’s cooling off any time soon. Investments from domestic and foreign companies alike are pouring in to the city and it is showing in the form of development and growth. A majority of the investments start in the oil industry but their effects stretch far past the energy portion of Houston.
Houston has been predicted as the second hottest real estate market in the United States only behind San Francisco. It is growing in all areas of real estate: office, industrial, retail, apartments and hotel. The biggest area of growth is in new apartment construction. The past few years have brought massive plans for even more new apartment units to the Houston metro area.
Just because apartments are seeing a huge growth, it doesn’t mean that the other portions of real estate are slowing down. New home sales have also skyrocketed in Houston. A lot of it has to do with local investment creating new jobs, which allows more people to qualify for mortgages. The increase in homebuyers has added up to about 5 million home sales in 2013 and another 5.3 million are expected by the end of 2014. So, what does that mean if you are in the housing market in Houston? Well, a few different things depending on if you are buying or selling. If you are thinking about selling, act quickly. Homes are selling at historically high rates and you could fare better than you imagined if you strike while the iron is hot. All good things must end so if you hesitate you could find yourself with a house you don’t want once the bubble has burst. If you are buying and you can, you might want to wait. Right now many potentially homebuyers are getting frustrated after losing in bidding wars and either don’t have a house to buy or end up paying much more than they originally anticipated. If you can’t wait, be prepared to pay more than you originally thought. You should also make sure to jump on any house that you see you like. Chances are you will be competing no matter what home you find you like so get those pre approved mortgage letters so as little as possible stands in between you and the house of your dreams.
Whether you are an investor, a renter, a buyer or a seller, it looks like 2014 is going to be just as good for you as 2013. Just keep in mind that all bubbles will burst and Houston’s real estate market is no different. So, take advantage while you can and understand that market conditions can change without any notice.