Are tides turning? Is the Houston Real Estate Market in Transition?

Houston real estate continues to show signs of growth in 2024. The market continues to favor sellers, and I do not see significant changes toward a more balanced market soon. Houston remains a desirable city with a diverse economy, attractive cost of living, and some slight market adjustments.

The Houston real estate market had rapid sales and bidding wars the last couple of years. Seller's in 2024 are not encountering such a large amount of bids and the properties are staying on the market a bit longer than in the past two years. Depending on the area, the condition of the home, and the list price, properties are averaging 3 months on the market.

A shift towards a more balanced market is influenced by a few factors:

• Rising interest rate: The Federal Reserve's interest rate hikes directly impact mortgage affordability, potentially shrinking the pool of qualified buyers and influencing offer amounts.
• Increased Inventory: The surge in new listings creates more competition for sellers, requiring them to strategically price and present their homes to attract buyers.
• Shifting Buyer Expectations: Buyers, aware of the changing market dynamics, may be more inclined to negotiate the asking price and request concessions like repairs or closing cost assistance.

A transition doesn't spell doom and gloom for the Houston Market. It simply underscores the need for sellers to adapt their strategies. Pricing the property competitively, addressing necessary repairs, and being open to reasonable negotiations can increase the chances of a successful sale. The key lies in recognizing the evolving market and adjusting accordingly to achieve a win-win situation for both buyers and sellers.

On March 8th you will learn more about additional factors that influence a more balanced market. See you soon!