Most of 2014 has been kind to Houston real estate: Prices for residential homes in Houston hit an all-time high in April. This is partially due to the fact that there are fewer numbers of homes available, and bidding wars are constantly being played out.
The average price for a single-family home as of April stood at $270,505. The median price point has seen an increase by around 5.4 percent from last year to stand at $195,00. Single-family home sales are also on the rise. The current home supply stands at around 2.6 months, which is the lowest it has been since April of 2013.
Because of the dip in housing inventory, Houston is now facing the beginnings of a sales slowdown. That being said, the sales activity for premium homes, in the category of $500,00 and more, is on the rise. This has driven average sales prices to an all-time high.
1. Increase in apartment development: With a constant demand for residential homes, several builders are going on a binge-building spree. Multifamily apartment projects are going up across the city. Besides development downtown, there are several projects coming up in the suburbs as well. Because of the current high prices of homes, there is a lot of demand for rental properties, especially among young professionals.
2. Boost in retail development: Retail has long since taken a back seat in Houston. Now with realty development on the rise, retail seems to be taking off in a big way. With several new rooftops being added to the real estate scenario, retail development is at an all-time high. Commercial rentals are seeing an increase this year. The fear that online sales will relegate the retail store to the background has long since proven false.
3. Increase in hotel construction: With citywide hotel occupancy rising on a monthly basis, there has been a spate of hotel projects taking off. More hotels encourage more visitors. More hotels also mean more convention spaces, encouraging commerce in the city. Large names like JW Marriott and Hyatt Regency will soon open their doors in the city. This will enhance the economy of the region and put prices in a good place.
4. Ideal single-family market: This year will see a 10 percent increase in residential construction in the city. New players are poised to enter Houston, and residential land is seeing a massive demand. A little-known fact about Houston real estate is that it has the best home building market in the country; it has more single-family building permits than any other city in the nation. This trend is sure to continue in the next two years.
Real estate in Houston has gone through several ups and downs over the past few years. It is finally reaching a stage where it seems to have stabilized, and a sense of balance is being achieved between demand and supply. Now is perhaps the best time to invest in real estate here.