Despite relatively low inventory and stock of available houses –not to mention the slow recovery the nation is undergoing from COVID-19 –the Houston real estate market remained strong and stable, thanks to the city’s initiative of job creation and historically low mortgage rates throughout 2021.
As one of the most trusted cash homebuyers in Houston, TX, we want to make sure that we’re offering our clients the best prices on their homes, which means we watch out for the latest trends in the real estate market. Here is our prediction for hot Houston real estate market trends for June 2022:
Single-Family Homes’ Prices in Houston Will Continue to Rise
Real estate market trends for 2022 state that the Houston real estate market remained positive across the first half of 2022, thanks to undeterred buyers braving slowly increasing mortgage rates and a record-low supply of homes in the Greater Houston area. Although the market has struggled to keep up with buyer demand, hundreds of new listings pop up in the market every week, with many houses seeing record-high offers throughout March and April.
The bestselling Houston properties as of the first half of 2022 are single-family homes, sales of which grew by 4.1% in March. This translates to 9,693 units sold this year as compared to 9,309 sold in March of 2021. Overall, the market is 10.8% ahead of last year’s pace, and while the seller market is robust, the rental market is just as strong, as residents who can’t afford to buy homes are opting to lease instead. Although the national median for housing prices is at $428,000, a majority of homes sold in April of 2022 were the houses that were in the $500,000-$1,000,000 price range, an impressive year-on-year increase of 36.1%
Single-family Houston homes have risen in average price in this year alone, with an 11.4% increase to $410,923. Meanwhile, median prices have increased 15% to $335,000, marking the first time in Houston history that a single-family home has exceeded the $400,000 mark.
The Houston Housing Market will Remain Stable
But what is driving all of this growth? Well, according to financial and real estate analysts, a lot of this prosperity is thanks to the city’s aggressive drive for economic growth and job creation. In fact, a study by Smart Asset has shown that Houston ranks 6 in its list of the top 20 American cities with the best housing markets for growth and stability. Impressive on its own, but it’s even more impressive when you factor in the city’s whopping 221% increase in home prices and a highly impressive zero percent chance of home value loss over the last 25 years.
This is a fantastic real estate trend for Houston anyone should take note of. Basically, if you bought a $200,000 house in Houston in 1997, you could sell it for a 221% profit with 0% chance of that value going below your purchase price.
Economic development within the city has been impressive, with the Greater Houston partnership reporting a record number of job growth in 2021, completely offsetting many of the positions left vacant by the Covid pandemic of 2020. In fact, in just a little over 2 years, the Greater Houston Area created 151,800 jobs, a 5.1% increase over pre-pandemic levels.
Besides the rise of single-family homes in Houston, luxury house sales have also increased, with the sale of houses in the $1 million and up range increasing by a respectable 16%. Meanwhile, sale of houses in the $250,000-$500,000 range also increased by a strong 24%. This means that Houston is able to provide housing for residents in a wide spectrum of socio-economic capabilities, further securing its stability and practically ensuring growth over the next few years.
Contact a Professional Homebuyer Today in Houston!
As one of the most trusted cash home buyers in Houston, TX, Ohana Legacy Properties prides ourselves in being experts in the field of real estate in our respective operational areas. That’s because we want to make sure that we offer the best possible prices to our clients, as close to fair market value as possible.
We want to make sure that you get the most out of your house, which is why we take the time and effort to research market trends and housing prices in your area. Contact us, today, to learn more about how we can help you!