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The Houston real estate market is on fire and demand is expected to continue through the year.
According to Houston.org, Houston set a record for the number of home sales in 2021, and there is an expectation that the rate of sales will remain high regardless of the fact that the federal reserve is expected to raise interest rates multiple times this year in an effort to combat inflation.
"If they wait six months to a year, they may not be able to get into a house at all without a substantial increase in income or a larger down payment," Patrick Jankowski, Greater Houston Partnership, senior vice president of research said, according to the press release.
Jankowski said that the demand for housing will continue as people keep moving to the region. Jeremy Fain, a broker associate with Greenwood King Properties, echoed that sentiment:
"I think there may not be as many of them in the price points [or] brackets they were in a few months ago, but I think as long as we have a lack of inventory, it's still going to be busy," Fain said.
According to John Burns Consulting, interest rates on a 30-year conventional mortgage have already jumped 100 basis points since January 2021. Jankowski said he expects the rate to increase by at least 1% next year.
"One percent doesn't seem like much, but when you're looking at a house that's $300,000 or $350,000 that could add as much as $200 to $250 to your monthly note," Jankowski said.
Amy Bernstein, who has been in the market for 40 years described the current market as a "frenzy."
"Anything that comes on the market right now, if it's priced correctly, will get bought up almost immediately by multiple offers. I have never, ever experienced a market like this," she said.
Jankowski said that the cost of housing will continue to rise, and that some buyers may have to put down larger down payments, or have to resort to buying smaller homes or homes in less desirable neighborhoods.