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Sweet Spot for Oil Clue to Houston Housing Market
The price of oil is one of the first clues indicating the housing market is recovering. This usually means that housing inventories might start to disappear.
According to a study done by “Metrostudy” when oil prices are between $55 and $90 per barrel there tends to be a demand in Houston housing. That makes the sweet spot around $65. Despite the fact oil dropped below $40 per barrel in August, HAR reported September single-family home sales totaled 6,691 units compared to 6,463 a year earlier, an increase of 3.5 percent.
If your clients are considering buying in Houston, current oil prices might make them nervous. However according to the US Energy Information Administration because they are looking for prices to rise as high as $75 in 2016 it makes this year the perfect time to buy in Houston!
As well, mortgage rates are still low making mortgage payments far more affordable and worthwhile when compared to renting. Although there are a number of high end, luxury apartments popping up in Houston, people still have a dream of ultimately owning a home.
According to HAR rents rose to an average of $1,901 for a single-family home and $1,647 for a townhome or condo. This makes buying even more appealing.
As you know selling season is winding down as the holidays approach. It still seems 2015 will show impressive numbers as the year comes to an end.
All the best,