Why Houston Real Estate is a Seller’s Market Right Now

If you’re looking for a house to buy right now, you may have already discovered that Houston real estate is a seller’s market. That means that market conditions favor home sellers over home buyers in Houston currently. 

Fortunately, that doesn’t mean that you can’t buy a house in Houston right now, or that sellers will gouge you for more than the house is worth! In this article, we’ll discuss what a seller’s market means in Houston real estate and how to get the best deal as a buyer. First, however, let’s talk about why Houston real estate is a seller’s market right now:

1. There’s not enough housing inventory to meet demand.

Put simply, a lot of people want to own a home in Houston. Whether drawn here for work or the big-city amenities, Houston is one of the fastest-growing cities in North America. The supply of houses for sale simply can’t keep up with all the demand from buyers.

2. Sellers aren’t listing houses right now because they’re worried about paying higher interest rates for a new home.

Current interest rates set by the Federal Reserve are much higher than they’ve been in recent decades. That means it costs more to borrow money for a home loan than it did 10 years ago. For this reason, more potential home sellers are hesitant to upgrade their housing and fewer homes are being put up for sale than in years past.

3. Sellers are hesitant to sell during the current economic climate.

Times are tough for a lot of people right now. Inflation may be slowing, but it has a lot of homeowners spooked about their financial prospects. That makes them less likely to want to mess with their housing situation unless absolutely necessary, which means fewer houses for sale.

4. New homes aren’t being built fast enough to meet demand.

The obvious answer to housing demand that outstrips supply is to build more houses, right? Well, more houses are being built in Houston. However, the pace of construction still can’t meet the current demand. Until it does, the new houses being built simply aren’t enough to affect the prices of existing homes.

There is good news!

This all seems like very bad news if you want to buy a house in Houston! Fortunately, the reality is that things aren’t as bad as they might seem. 

In our many years of combined real estate experience at Angel Fultz Realty, we have NEVER seen a buyer’s market in Houston. Demand to buy a home in Houston has outstripped supply for a very long time now. That’s actually a good thing—when you buy a home in Houston, you want your home value to stay strong and increase over time. That’s exactly what we’ve seen for decades.  

Here’s the best news: While you can’t expect to stumble into an unbelievable steal of a deal on a house in Houston, home prices are currently fair. The high interest rates won’t allow sellers to overcharge for a home, because too few people can afford to pay high interest rates AND inflated housing prices. 

The key to getting the best deal possible on a house in a seller’s market is simple: Act fast and give your best offer. There is virtually no wheeling and dealing to be done in the Houston real estate market. You will likely face competition for every house in Houston you make an offer on, so playing games won’t get you anywhere. Make the best offer you can, and make it as fast as you can! 

Hiring an experienced Houston Realtor® makes the homebuying process as painless as possible. At Angel Fultz Realty, we can locate the best homes on the market that meet your wants and needs. We will negotiate with the seller to ensure that you don’t overpay for your house! Now more than ever, having a great Realtor® on your team is critical to finding your dream home in Houston.

Looking for a house to buy? Contact us today for a free consultation on your Houston real estate needs!