Real Estate sales usually taper off as summers come to an end, but this is not the case in Houston this year. The sales of single-family homes in September were 23.5 percent more in 2013 as compared to September of 2012. Deals were closed on 6,168 houses which is the highest number of sales in September ever recorded in the history of Houston real estate.
The real estate market in Houston has been rising over the last 28 months and this trend seems like it is here to stay because Houston real estate is not showing any signs of sales slowing down. One of the reasons of high real estate sales is the relocation of employees into Houston from various other cities. This requires the newly relocated employees to buy homes in the center or suburbs of the city.
81,000 jobs were created in Houston over the span of one year. Interest rates on mortgages remain under five percent and the inventory of homes on sale remains tight this year, which indicates that the rest of the year looks good for the real estate market in Houston. The supply of homes dropped to 3.7 months, compared to the supply of 4.7 months in last year. This means that the inventory is tight and the hottest places in the market will be getting multiple offers to be sold within days.
With the increase in demand for houses, the prices are also increasing by the day. The median prices of single-family homes increased by 10.2 percent while the average price of the houses increased by 13.1 percent.
Newly built houses are being sold in suburbs whereas the demands for lots is going up due to house builders who want to tear down old houses in order to build new and improved ones. With the approach of November, December, and January that are considered the slowest months of the year, less people will be putting their houses for sale. This means that the inventory will remain tight for the rest of the year, automatically increasing the prices of the limited houses that are currently available.
An increase in the mortgage rates, slowdown in the local economy or a national economic crisis can bring down this sudden surge in a days’ time. Until then we can be assured that the flow in the Houston real estate market is here to stay.