HOUSTON – (Realty News Report) – Houston ranked among the Top 10 U.S. markets last year where buyers could find a deal on a home, according to a study by Owners.com. That’s encouraging news, especially after the intense national and international attention the city received following Hurricane Harvey. Founded in 1996 as an online for-sale-by-owner (FSBO) directory, Owners.com expanded five years later to let FSBO sellers add listings to local multiple listing services (MLS) for a fixed fee. Since 2009, the company has helped sell more than 160,000 residential properties. To learn what the Owners.com survey revealed about Houston’s residential market, Realty News Report spoke with Mathew Anderson, Texas managing broker at Owners.com.
Realty News Report: Houston made the list of the top 10 markets where homebuyers could get a deal. What factors contribute to that ranking?
Mathew Anderson: Owners.com’s 2017 Market Recap showed Houston homes selling below their listing price while rental rates are rising. That combination makes owning a home potentially more affordable than renting for many people. Although parts of the market are competitive, savvy buyers can still secure attractive deals before demand pushes prices higher.
Realty News Report: The study indicates homes in Houston sell for nearly $16,000 under listing price. Why is that, and will it lead to more sales or relocation?
Mathew Anderson: One contributing factor is Houston’s lower loan-to-value ratio compared with the national average, which can reflect a higher number of foreclosure or short-sale properties—situations that often present opportunities for buyers. Even so, homes aren’t lingering on the market; Houston listings typically sell only slightly longer than the national average (about 96 days), so deals move quickly. Millennials and other buyers recognize Houston’s value and amenities, which should translate into increased buyer activity and relocation over time.
Realty News Report: Briefly, what is Owners.com?
Mathew Anderson: Owners.com is a technology-enabled real estate brokerage that integrates the main aspects of buying and selling homes onto a single platform, streamlining the process for consumers.
Realty News Report: Houston felt the effects of Hurricane Harvey. Has that influenced the local residential market?
Mathew Anderson: Immediately after the hurricane, inventory tightened, but recent months have shown a rebound in home sales. Government assistance programs and disaster relief funds have helped many displaced residents purchase replacement homes, and a relatively low foreclosure rate among affected homeowners has stabilized the market. As damaged properties are rebuilt and confidence returns, the housing market in Houston is recovering, and I expect sales to continue rising.
Realty News Report: The Owners.com survey reports an average of 98 days on market in Houston—one of the shortest among Top 10 buyer markets. What explains that?
Mathew Anderson: Compared with other top buyer markets, Houston’s homes tend to sell more quickly because the city is affordable, offers abundant job opportunities, and hosts many major corporate headquarters. Those factors make Houston attractive and increase buyer competition. Additionally, investor interest in properties that need renovation has accelerated turnover, as investors often buy quickly rather than wait for move-in-ready homes.
Realty News Report: The survey also describes tight inventory in Houston. Why is supply constrained?
Mathew Anderson: Inventory in Houston is lower than in other top buyer markets and was further reduced by Hurricane Harvey, which destroyed or damaged homes that might otherwise have been listed. At the same time, demand has strengthened, creating a market where bargains can still be found but competition and occasional bidding wars are likely due to limited supply.
Realty News Report: What are your expectations for 2018—will sales increase in Houston?
Mathew Anderson: I expect 2018 to remain strong for Houston real estate. The market’s combination of affordability and buyer opportunity should attract more purchasers. New employment in the energy sector, expansion of construction in outlying areas, and relocation by those affected by Hurricane Harvey are all likely to drive additional buyer interest and sales.
Jan. 15, 2018 Realty News Report Copyright 2018
