The Houston property market has done great things over the last year, despite initial worries that Hurricane Harvey would impact the market. Instead, Houston property has made more than a full recovery. In mid-2018, the city has one of the healthiest property markets in the US, ticking all the right boxes for investors.
The main characteristic behind the Houston property market in the middle of 2018 is rising prices. One property portal reports that although prices rose throughout 2017, prior to Harvey, they have since seen even higher hikes. According to the Houston Association of Realtors (HAR), single family homes increased in value by 5.3% in the year to April. This reached an all-time high median price of US$240,000. Prices for properties in the US$500,000 to US$700,000 bracket skyrocketed by a median of 30%.
Top take-away? The Houston property market is a growth market with strong potential for capital appreciation.
Sales are currently moving at a very brisk pace in Houston. They increased by 7% in April, one of the busiest months on the Houston property market. According to a property portal, completion took an average of just 73 days in April and May, compared to the national average of 81 days.
Top take-away? In the year to April 2018, 33% more properties in Houston sold for more than their asking price compared to the 12 months to April 2017.
In common with most of the US, the Houston property market is short on supply. Figures from the HAR point to 2% fewer homes on the market in April this year compared to the same month in 2017.
Top take-away? Demand remains high – according to Realtor.com, the number of people looking to move to Houston in Q1 this year went up by 20% in the year.
Capital appreciation up
A Zillow survey of the largest metro areas in the US found that the Houston housing market “was one of a few in the US where sellers profited enough from selling their home to cover their next down payment”. On average, the percentage gain between sales was 24.7%, the 14th highest in the country.
Top take-away? Buying property in Houston is a solid investment.
Analysts are unanimous in that Houston property market has rebounded since Harvey. The economy too is strong. The Port of Houston and the Texas Medical Centre have become focal points for employment and growth, and the oil and gas sector has entered full recovery mode after the downturn in the prices.
Top take-away? The Houston property market remains one well worth looking at. If you are thinking about buy-to-let investment, BRIC Group offers a selection of properties in Houston from US$169,500 and with two years guaranteed rental income.
(Source: HAR, Zillow, Realtor.com)