Houston- Home market (Katy, Brazoria, Howe: for sale, real estate market, insurance)

[H'ton]

With the Corona Virus impact coupled with the plunging oil prices and a possible wave of energy sector layoffs, what do you predict will happen to the Houston real estate market for the next few months through the rest of the year?

Stay the same? small decline? larger decline of 20%+?

Also, what price ranges will be the most affected and where do you think you'll see the most movement....suburbs, inner loop, etc.

[As Above So Below...]

Huge decline.

[jtothemak]

I think we will see a delayed reaction overall. Keep in mind most lenders are allowing 6 month forbearance on mortgage payments which anyone hurting financially will take advantage of before they try to unload their house that may not be afford.



Immediately there will be a less of demand for housing so I do predict a downturn in the very near future for new build homes so we see may new construction get aggressive on pricing. However new construction is already overinflated anyways.



Another major factor is when will banks start to tighten lending will also be a determining factor.



Everything is a guess at this point, really need to wait until maybe end of May to start predictions.

[LocalPlanner]

Of course, overall activity is down in the immediate term. But, as far as the for-sale market goes, I think the lower price ranges will fairly quickly ramp back up, even with social distancing. Interest rates are low. Millennials have entered their prime home-buying years. The main risk I see at the moment is the mortgage market tightening up credit requirements, which they have already started doing. This might cut some entry-level buyers out (perhaps irrationally, given that FHA/VA/USDA include mortgage insurance).

Once you get to price ranges over $300K and especially over $350K, the impact of the oil market crash will really be felt, especially in the suburbs. The high-paying oil industry has traditionally been a major factor in this segment of market, especially in the west, northwest, and north sides of the metro, and to some extent in Fort Bend. Even the folks whose jobs are not in jeopardy will find it harder to sell their existing homes in order to move up, if they are over $300K. This is what has traditionally happened in Houston. The Energy Corridor and Katy areas will have a notably hard time in the higher price ranges. I live in the Energy Corridor and have to face the prospect of my home having peaked in value a couple years ago, never again to reach that level.

Brazoria and Bay Area shouldn't feel it as much.

[Jtxg]

Just my two cents, but I think the hardest hit will be north of $500k price range. I think the range below $300k will bounce back just fine.

[jd433]

Not a huge decline because Houston was already affordable even before the virus

[Hopeful for Life]

Originally Posted by jd433

Not a huge decline because Houston was already affordable even before the virus

It’s affordable to ppl that come from more expensive real estate markets. I’m not so sure thst it’s inexpensive for those who are from here and work here. Suburbs will be hit harder.

[Failed Engineer]

Supply will need to pick up before there's pricing movement. Only those that absolutely have to sell are putting properties up for sale. Nearly everyone is waiting.

[dd1153]

Have you spoken to anyone with their house listed?

My brother in law just listed his house Thursday.
12 showings 4 offers by Friday night in Cypress.

Houses are still selling.. very fast.

[hbcu]

depends on the zip code, quality of house and price point from my observations at this point.