Houston, Texas, February 27, 2023 - Housing prices remain quite stable despite the overall hesitancy of consumers to shop for new homes right now, experts reveal.
For the tenth straight month in January, Houston saw a sharp decline in home sales. Compared to the same month last year, it was down almost 30%, according to The Houston Association of Realtors.
HAR Chair-elect Thomas Mouton believes potential homebuyers are unsure whether or not it’s a good time to buy. Inflation, fears of a recession, and high mortgage rates are some of the cited reasons why consumers would rather wait for better market conditions.
Ironically, housing prices have remained steady, even seeing a little increase, despite the decline in sales. Last month’s median home price increased by 1.6% compared to January 2022 with the average price sitting around $382,000.
Meanwhile, home inventory grew to 2.7 months from a 1.4-month supply, the highest Houston had seen in two years. Across the country, home inventory is at 3.3 months, according to the National Association of Realtors.
A key part of the sales equation, a tight housing inventory signifies faster home sales and higher prices, while a four to six-month supply means that there is a more balanced market.
Despite the uncertainties, the Houston housing market has generally held strong since COVID-19 and is expected to see a slow and healthy return to pre-pandemic normalcy by the middle of this year 2023.
Mouton adds that if homebuyers are waiting for drastic price drops, they’ll probably end up disappointed. Compared to January 2020, last month’s home sales were only down 4.6%. HAR also sees signs that things could be getting better, with prices moderating and mortgage rates easing.
If you are a consumer looking to buy, now might be the best time. While there may still be a one-off bottoming out in prices, there’s no guarantee that will happen, and you might want to position yourself now.
Sellers might want to wait for prices to go up as well, but no one has a crystal ball to tell you when or if that’s going to happen. No one, not even experts, has ever timed the market with 100% precision.
If you’re wondering when might be the best time to sell, the answer is whenever it makes sense to you. Perhaps you’re looking to upgrade, downsize, relocate, sell an inherited home, or just pay off some debts. Selling now may not be the worst idea, especially since the prices have remained quite steady anyway.
What’s important is ensuring that you’ll still get a fair valuation for your home right now. If you’re looking for a trusted home-buying company in Houston, check out
FavorHomeSolutions.com. They are not real estate agents but rather direct property buyers who purchase homes as-is! They can save you a lot of time and energy as they don’t require you to renovate or redecorate. They also work quickly and can close deals in less than two weeks.
Source:
FavorHomeSolutions.com