HOUSTON – It’s a question every potential home buyer is asking right now.
Just how high can home prices rise in what has become a seller’s market on steroids?
“The Houston market is not just hot. It’s on fire. We have too many buyers chasing too few listings,” said Richard Miranda, the chairman of the Houston Association of Realtors.
In May 2020, total property sales reached 7,781. A year later that figure nearly doubled at 12,100 properties sold.
During the same one-year period, the average home price went from $298,000 to $387,000, a nearly 30% increase.
That has made it far more difficult for homebuyers like Ashley and Jeremy Walker of Spring to find the home they want at a price they can afford.
“Houses are selling practically at the same time they are listed. As we’re looking online, everything is already on contract. I mean, the house you love, the one you fall in love with, is already under contract. It’s gone so fast,” said Walker.
Already, the Walkers, who’ve only been house hunting for a month, have had to greatly raise the figure of what they intend to spend.
“We were planning on spending about $275,000 but now we are having to go to about $300,00, or even $325,000,” said Ashley Walker.
One reason for the high prices is that so many buyers are getting into bidding wars with other buyers when they set their sights on the house they want.
Realtor Thurayah McBride of the McBride Home Group has this advice if you want to greatly improve your chances of getting the house you want.
“Tip number one would be to write a pretty strong offer to the seller and then assure the seller that you, the client, can close on time. That you can close faster than other interested clients,” Thurayah said.
To help home buyers keep from busting their budget, KPRC 2 Investigates, working with the Houston Association of Realtors has come up with the top 10 areas where you can find some of the lowest prices out there.
AVERAGE PRICES FROM JANUARY 2021 UNTIL NOW
Humble South: $156,000
Northeast Houston: $168,000
North Channel Area: $198,000
The Medical Center South: $200,000
Five Corners: $206,500
Humble West: $207,000
Cypress Creek South: $214,000
Spring East: $214,500
As for Jeremy and Ashley Walker, they are looking for a four-bedroom home for themselves and their three children.
After 4 weeks of shopping around with their realtor Thurayah, they still have not settled on the house of their dreams yet.
When they do, they plan to move lightning fast.
“If you want it, act on it right then. Because it could be gone in two seconds,” Ashley said.