Houston’s Resilient Real Estate Market
The final numbers have not been released yet, but 2021 should go down in the books as another record year for home sales in the Greater Houston Area. The market cooled slightly with the temperatures in September and October, but heated back up again in November and December.
Lower inventory levels caused some buyers with no immediate pressing need to purchase a new home to take a break. Multiple offers on attractive properties and even on flawed properties have caused frustration for many buyers, that don’t want to overpay and don’t want to give up all of their contingencies (option period, financing approval, appraisal, etc) in order to win the deal over other buyers, many of which are investors from outside the area. But it is still a strong seller’s market with strong buyer demand and not enough inventory for the demand.
This market still has plenty of wind to fill the sails in 2022 – strong local “move up” demand, domestic and international relocation to Texas, and low interest rates, aided by the need for larger homes by people that now work from home and may educate children at home. 2022 should bring a very strong residential real estate market.
It’s a good time to be a seller, especially if you are positioned properly to attract multiple offers. A few tips:
Price it right – No one wants to leave money on the table by underpricing, but overpricing can lead to low showing traffic and additional time on market, reducing the seller’s negotiation power. Price the property at the top of the range of fair market value, but not over that range.
Put your best face forward – Complete minor repairs and freshen up the home so that it is move in ready. A complete renovation is not necessary, but fresh paint and carpet, updated light fixtures and ceiling fans in the main living areas, a fully operational kitchen and an attractive master bathroom will go a long way in attracting the most buyers and the highest offers.
Improve critical systems – Buyers’ biggest concerns regarding value is the status of critical systems – HVAC, water heater, roof, plumbing and electrical. Providing current age and service records for these critical home systems showing that they have been well maintained will encourage the strongest offers. If these systems are in need of repair or replacement, these dollars will be well spent and will be recouped in the sale price.
Here are some year end stats for home sales in some of Houston’s leading submarkets:
David Michael Young
is a Broker Associate with
Young Realty Group / Compass RE Texas
david@youngrealtyhouston.com