Houston Real Estate Market Shifts in Favor of Buyers
The Houston real estate market is starting to balance out, and it’s now a great time for buyers to invest in a home. According to the Houston Association of Realtors (HAR), the market is shifting in favor of buyers due to a decrease in interest rates, an increase in housing inventory, and the arrival of spring.
What’s Causing the Shift?
The decrease in interest rates is one of the main factors contributing to the shift in the market. Although the decrease is small, it can make a big difference in the long run. As Kat Robinson, HAR Chair-Elect, explains, "Our current interest rates are sliding down. It’s not significant, but every quarter of a point can add up very quickly when it comes to the interest rate over a 30-year mortgage." This means that buyers can now afford to borrow more money to purchase a home, making it a great time to invest in real estate.
The Impact of Spring on the Market
Spring is also a factor in the shift towards a buyer’s market. As Robinson notes, "It’s springtime, and this is when people want to move. They want to make sure their housing choices and changes are shifted before the end of the school year so that they can move and enjoy their summers." This means that there are more buyers in the market, looking to purchase a home before the summer months.
A Change from the Pandemic-Era Seller’s Market
The current state of the Houston real estate market is a significant change from the pandemic-era seller’s market. During the pandemic, there were more buyers than homes available, which drove up prices and made it a seller’s market. However, with the decrease in interest rates and the increase in housing inventory, the market is now shifting in favor of buyers.
Current Interest Rates and Housing Inventory
As of recently, 30-year fixed mortgage rates were 6.67%. Although the Houston real estate market has not quite hit 5-6 months’ worth of housing inventory, which is historically the marker for a buyer’s market, it is leaning in that direction. This means that buyers now have more options and negotiating power when it comes to purchasing a home.
Why Now is a Great Time to Buy
According to Robinson, "Right now is a great time to buy because owning a home creates a possibility of legacy wealth." This means that investing in a home can provide long-term financial benefits and security. With the current state of the market, buyers can take advantage of lower interest rates and a wider selection of homes to find the perfect property for their needs.
Conclusion
In conclusion, the Houston real estate market is shifting in favor of buyers, making it a great time to invest in a home. With decreasing interest rates, increasing housing inventory, and the arrival of spring, buyers now have more options and negotiating power. Whether you’re a first-time buyer or a seasoned investor, now is a great time to take advantage of the current market and invest in a home that will provide long-term financial benefits and security.
