Houston Home Sales and Prices Surge! (Portland, Detroit: low income, apartment, rental market)

[hbcu]

All about the zip codes

I want to move to a certain code in Houston but for what I want, certain square footage somewhat custom no add on to boost square footage, the inventory is microscopic and if something comes up it’s already sold before posted or bid on instantly.

Other areas where it’s hot if you have 10000 square feet or more and a decent house. Can’t replace space.

Other areas with new builds you are competing with that

[lipbalm]

Originally Posted by jtothemak

Personally I think give it time and prices will go down. Right now fewer people are moving because of Covid leading to low inventory. Then everyone that is out of work got extra unemployment, stimulus and mortgages offering 6 moths of payment deferment. That will end and if the economy is not turned around we will see a surge of homes available on the market for a housing market correction.

It can be up to a year per the cares act. You can request an additional 6 months extension.

On another note, fannie and freddie have announced a 0.5% fee on all refinances, like I said banks don't want to lend and will make it very difficult leading to deflationary pressure, including homes of course.


https://www.marketwatch.com/story/re...mac-2020-08-13

[dd1153]

New home prices are rapidly going up due to labor and material cost increases.

Read this article: Soaring Lumber Prices Limit Housing's Growth | NAHB Now | The News Blog of the National Association of Home Builders

Low supply of housing, low rates, increase labor and materials is driving the cost up.

Along with the influx of people moving into Houston from other cities.

[texas7]

Houses seem to be currently selling at record levels. A nice home, in a desirable area, is usually under contract in 5-30 days from listing date. I know people having a hard time finding an available home and going through bidding wars. Even the worst areas seem to be flipping fast with investors anticipating a change in the area. But it was summer selling season.

[Sammysh]

Asset prices fluctuate widely at times due to bandwagon effects and speculation, but eventually they return to their economic fundamentals. Both the stock and the real estate market right now are in bubble territory. I wouldn't touch any of them with a 20 ft pole, but if you have the balls to do it and you can time it right, you can still make money. Nobody knows when it will crash but it will. There's no way to go up forever with the high unemployment level and the countless bankruptcies in the oil patch.

[Sammysh]

The real estate people keep pumping this up because they make money off of it, but I feel bad for the folks who fall into it, get scared by prices going up for a couple of months and jump on buying. It is literally the same thing that happened on the last stretch of the 2008 bubble.

[dd1153]

Originally Posted by Sammysh

The real estate people keep pumping this up because they make money off of it, but I feel bad for the folks who fall into it, get scared by prices going up for a couple of months and jump on buying. It is literally the same thing that happened on the last stretch of the 2008 bubble.

No this is nothing like 2008. Back then ANYONE qualified for a mortgage. Or 5.
No doc loans, no income verification, no credit checks.. NOTHING.

Today lenders have much tighter guidelines and standards.

2008 was caused by financial securities being packaged, sold and ultimately worthless since a) there was no money / equity down b) many were buying who shouldn’t have.

2020 started the year being UNDER SUPPLIED with housing - which means high demand, low supply. Prices rise, right? Up until Feb that was the case. Then BAM Covid hits Houston.

If you were thinking about selling were you listing still?
Probably not, given you don’t want anyone coming thru your house.

Guess what.. people still moved here. Leases expired. Buyers were out in the market buying up an already UNDERSUPPLIED market.

Then rates dropped under 3%.. and sales exploded.

Economics .. law of supply and demand

There isn’t enough houses in Houston

[hbcu]

Originally Posted by dd1153

No this is nothing like 2008. Back then ANYONE qualified for a mortgage. Or 5.
No doc loans, no income verification, no credit checks.. NOTHING.

Today lenders have much tighter guidelines and standards.

2008 was caused by financial securities being packaged, sold and ultimately worthless since a) there was no money / equity down b) many were buying who shouldn’t have.

2020 started the year being UNDER SUPPLIED with housing - which means high demand, low supply. Prices rise, right? Up until Feb that was the case. Then BAM Covid hits Houston.

If you were thinking about selling were you listing still?
Probably not, given you don’t want anyone coming thru your house.

Guess what.. people still moved here. Leases expired. Buyers were out in the market buying up an already UNDERSUPPLIED market.

Then rates dropped under 3%.. and sales exploded.

Economics .. law of supply and demand

There isn’t enough houses in Houston

There are houses - Houston or Houston area as we have plenty out here

[dd1153]

Originally Posted by hbcu

There are houses - Houston or Houston area as we have plenty out here

Correct.. what is driving supply down is sellers are holding off on listing due to pandemic, and builders are having to pay more for labor / lumber costs.

This creates a shortage in supply and rising prices.

[dd1153]

HAR Market Data

Total property sales is up 25% year over year.. active listings down 20%.. average price up 8.5%.. days on market down 1.2 months.

Low supply + high demand + low rates = strong RE market

https://www.har.com/content/mls