Inflated home prices in Houston

Are in inflated home prices in Houston causing a crash?

Is the Houston housing market finally loosing steam? Are the inflated home prices going to correct themselves? Are buyers finally going to re-gain the edge?

Not exactly…

However, the number of homes on the market in Houston has been rising and the average time it has took to sell a home has grown longer. Not to mention, many of the homes have been selling well below list price, especially homes in the luxury market.

These indicators come as mortgage rates have been on the decline since November. Which should push more buyers into the market.

National home prices…

Home values have been gradually slowing down, but still showing increases month over month. Except for Houston, which Zillow reported had a .03 decrease in home sales price in April.

Personally, I don’t find a .03 decrease an alarming statistic. Its menial and doesn’t show any evidence of a long term trend. It shouldn’t be an indicator that the Houston housing market is on a downward spiral. Because its not!

The main take way isn’t that there was a decrease, the reason why is! Generally speaking, when we see the housing market decrease it’s because of other economic factors, such as job losses or predatory loan practices, like we saw in 2008. This decrease I believe is a result inflated home prices, rising too quickly for buyers to afford.

If you have run away, inflated home prices month after month. Eventually the system will correct itself when buyers finally reach the breaking point on their budget and get priced out of the market. That is what we see happening in Houston.

Most inflated home prices in the nation…

Dallas, Houston and Denver are ranked to have the most inflated home prices in the nation. It should be no surprise that these cities are the first to see a dip in the market. These cities are where buyers have typically faced more competition in the market.

Keep an eye on the market during the “busy” summer season!

Nothing to be overly concerned about just something to keep an eye on through the summer “busy” season. Typically, when the market sees the most movement.

The greater Houston Area is so diverse and covers so much ground there will always be certain hot spots and other areas that will slow down. This is based on a wide variety of factors like, taxes, school, business development and job creation.

Houston isn’t slowing down!

We have an incredibly strong economy in Houston backed by the energy, medical and aerospace industries. With more companies moving here every year. The Houston housing market might have saw a slight dip in April but its going to take much more than a .03 decrease to slow Houston down!