Is Houston Real estate market weakening? (Spring, Combine: foreclosure, rent, HOA fees)

[A.L.I. Designs, Inc.]

I think it is a good time to buy in Houston. New Construction is everywhere in my area. Buy inside the loop and you will have no problem at all.

[wheretogo]

Texas is ranked among the 10 states that would be hit most by foreclosures. Also, add that $ 10Billion worth of ARM (for enitre US) is set to re-adjust in Dec 2007.

now you be the judge. I would wait.

[tstone]

Originally Posted by wheretogo

Texas is ranked among the 10 states that would be hit most by foreclosures.

Well yeah, when you're the #2 state for overall population, it's bound to happen.

I think we'll be hit, but compared to the hot spots it will come later and the damage won't be as bad... all because houses here are cheaper. People have a little extra time to scrape up their pennies to avoid foreclosure.

[Supermac34]

Some stats came out the other day. The 80-150 range got nailed year over year with a big drop in sales. Almost every other range still had strong sales with year over year increases.

The big thing was the over 500K market is still doing very well in Houston with a 24% jump in sales year over year.

I think Houston has the advantage of steady growth and steady prices, no huge peaks and valleys.

[ayannaaaliyah]

I also see a lot of the builders in the new developments selling the extra land and instead of continuing to build out, they're trying to sell off the land to cut their losses, which doesn't look so good for all those people running in buying up in this brand new communities. There's no telling who's going to purchase that extra land and what's going to end up on it either.

[Student4Life]

Ayannaaaliyah, which builders have you noticed trying to sell off land?

[ayannaaaliyah]

Originally Posted by Student4Life

Ayannaaaliyah, which builders have you noticed trying to sell off land?

Clay Road, near Raintree (I think that's the community) and up N. Fry. That whole area where new developments were popping up.

[modster]

I don't think the market is softening a whole lot. Yes it has backed off the record highs of last year, but there is a big difference between a "soft market" or "buyer's market" and anything short of record sales.

According to HAR the $80 to $150k price range saw a drop of 12.6% in August '07 compared to August '06. The balance of the market, however, saw an increase in sales of 8.3% and luxury homes sales, (over $500k) increased a whopping 26%.

If you go back further than 2006 to really put things in perspective:

total sales:

2005 8,106
2004 6,827
2003 6,255
2002 5,583
2001 5,741

2007 sales for August totaled 8,353.

I don't recall the last few years being a "soft market" yet now people act like the market has crashed even though sales numbers are higher than before.

[Student4Life]

Thanks Ayannaaaliyah... I may check out the location... Since I have been looking for property (land) every now and then I am running into Houston realtors who say they are looking for a second job... The houston market appears to be chugging along but in my informal survey I am starting to see some stress signs...

[DanBosCalTex]

Honestly I don't think hose prices can go down any further in the Houston Area. The cost of materials alone I can imagine are worth at least 150K.