Houston has enjoyed a strong real estate market throughout 2015 despite the oil industry downtown. It was so hot in the previous months that the Urban Land Institute (ULI) listed Houston as the #1 real estate market for 2015. Will that trend hold steady in 2016?
The Houston real estate market is inherently tied to the oil industry because it’s such a major economic driver. With the oil prices still on the downturn, the 2016 projections aren’t quite as optimistic as last year. However, that can mean good things for buyers.
Buyers Will Be in a Better Position
If you’ve been waiting to buy when the market is more favorable, 2016 is your prime opportunity. In some neighborhoods prices may stall and demand could be slightly down making it a more balanced market.
Home Building Will Remain Strong
The overall market may have dropped to 30 on the ULI 2016 list, but Houston home builders will still be busy. Bayou City is ranked #6 for homebuilding next year.
Suburban Areas Will See More Growth
Houston is among a handful of big cities that are experiencing more growth in the suburbs than urban centers. While Houston proper may feel the pinch of the oil industry, the suburbs will be less impacted.
Home Prices Will Remain Steady
After a few years of home price increases, some Houston housing reports are predicting that listing prices will remain relatively unchanged into 2016.
Upper End Market Inventory Will Remain Tight
Supply within the upper end market will continue to be on the tight side, which will be balanced with demand and help to keep the market healthy.
Want to learn more about the Houston real estate market? Stop by any of Sitterle Homes’ local communities to speak with a real estate expert.