In Houston, and areas like Katy and Fulshear, it is a great time to be a Seller, but perhaps not for Buyers. In a recent Houston Chronicle article, author Nancy Sarnoff discusses one young family’s struggle to buy a home in the current real estate market. Although the Dobrolecki family easily sold their home quickly, it has been a full year since, and they still have not been able to purchase a home they like. In today’s housing market, the demand for homes is continuing to grow, causing home inventory numbers to diminish and prices to rise. Again, good news for Sellers, not so for Buyers.
In fact, data from the Houston Association of Realtors shows that during the month of April, the median price for a single-family home was $195,000, an increase of 5.4% from last year. However, sales during the month were low, solidifying the theory that low home availability is affecting demand.
What is the reason for this so called Homebuyer limbo? Many Homebuyers presume that homes are simply selling too fast, and you have to at least offer the Listing Price to have a chance. Also, price escalation has occurred due new home builders raising their prices due to both rising construction cost and rising land cost.. It is also important to note the increased activity on the high-end side of the home market. Single-family homes ranging from $250,000 up saw a great increase in sales activity this year.
Because of the shortage of homes in town, many Houston Homebuyers have begun to expand their search to the outskirt areas of the county. Communities such as Cross Creek Ranch, Weston Lakes and Fulbrook are witnessing an influx of Buyers that are causing shortages and this is resulting in higher prices.