Houston's homes are selling fast, and valuations
have soared for real estate in all of Houston’s neighborhoods. There were 73% more homes sold in 2020 compared to 2011. The price per square foot jumped from $83 in 2011 to $133 in 2020. And while this may help Houston homeowners breathe a sigh of relief, those hoping to get in on the market for the first time may be having second thoughts.
Below is everything you need to know about navigating Houston’s seller’s market.
What is a seller’s market?
A seller’s market means there are more potential buyers than there are available homes for sale. In a seller’s market, current homeowners have the upper hand and can negotiate just about whatever they want in a transaction. A seller’s market can develop hyper locally (i.e. when a new development causes an influx of new buyers to a neighborhood) or across an entire city.
With that said, the current seller’s market in Houston isn’t caused by short-term factors. It’s the result of historically low interest rates and an overall shortage of properties to buy—especially for first-time buyers. Combine the supply shortage
with low mortgage rates, and you have a red-hot seller’s market on homes for sale throughout Houston, including neighborhoods like Heights, Spring Branch, and others.
Let’s talk numbers
, the average sale price for homes in Houston is $285,000, which is up 11% over last year. Using those numbers, if you own property valued at $350,000 last year, you now have an additional $38,000 in equity on your home due to the increased home valuations. Last year, the average Houston home was on the market for 31 days before it sold. This year, most homes for sale in Spring Branch are selling in about 2 weeks. If you’re a buyer, be ready to move quickly with your offer.