ResalesHouston: We Don"t Have A Real Estate Problem
According to the latest information from the Houston multiple listing service, the real estate market has experienced strong gains and the highest amount of home sales ever recorded for the month of April.
Positive job growth, continuing low interest rates, a diversified economy, and a general sense of the importance of home and hearth are contributing to record-setting spring home sales for the city where NASA is based.
In other words, Houston, we don"t have a real estate problem - unless it"s that home prices are rising (good if you are a seller or a recent buyer,) and homes are selling too fast in most areas.
The total sales for the month of April, consisting of single-family homes, townhomes, multifamily, country homes, high-rise properties and lots listed on the MLS, reached 5,422 for April 2002, which is a 10.2 percent increase in cumulative sales from this time last year. Total sales for April 2001 reached 4,919. When total cumulative sales figures for April 2002 are compared with March 2002, sales increased by 521 properties sold.
"Houston continued to see positive job growth," explains Realtor Don Foronda."Houston continued to see positive job growth - lower interest rates, rising apartment rentals and the remaining momentum from solid job growth earlier in the year offset other gloomy economic news."
He adds, "Existing home sales did even better, up 25 percent from November 2000."
And there are other reasons why Houston"s real estate market is shooting up like a rocket.
Says Realtor Margie Kaplan, "Houston is a great place to live - close to lots of other fun cities. Take a day trip to San Antonio, Austin, or Galveston!"
Realtors don"t believe that demand will abate any time soon, with demand for existing and new homes high.
Home sales for the first quarter of this year, both new and resale, were at an all time high in Harris and Montgomery Counties," says Realtor James L. Ramey, "New home builders continue to increase their prices on a regular basis, thereby driving up the prices of resale homes as well. Production cannot keep up with the demand. Resale homes sell quickly (if priced correctly), yet the buyers are buying them at a lower price than they will be next month."
What should buyers do? "The adage "buy it today because it will cost more tomorrow" was never more true than when referring to property in Harris and Montgomery Counties," says Ramey.
Advises Realtor Rosa Jimenez, "Homes that have been well maintained and have good curb appeal are not lasting long on the market. There are many first time buyers ready to buy, but with inventory so low many are finding it difficult finding a home. The best advice I can give a buyer in today"s market is not to take too much time deciding on making an offer on a home they like. If it looks good and you like it, go for it - it won"t be there tomorrow."
"Also make an educated offer," says Jimenez. "What I mean by that is this is not the time to try and get a bargain. If you don"t buy it, there are at least 2 or 3 other buyers waiting in the wings. By waiting you may just be spending more money in the long run because prices continue to rise. This is particularly true with builders. Some builders have an average of 10 price increases a year...by waiting you will be spending more down the line."
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