Take a look at the Houston Chronicle’s latest article regarding home sales in Houston. In reality, for most of us inside, or near the 610 loop, it is already here. The city is at 5.6 months of inventory of homes for sale. In reality, that is a Seller’s market. Anything below six months is considered a market that favors the Seller. The city averages are certainly more telling than the national averages, which are about as meaningful as a national weather forecast. We all know it can be raining in Miami while the sun shines in Houston. I am amazed at how the media seems to think that same logic does not apply to real estate. Even these averages for the city do not tell the entire story. There are some of our suburban areas that are still struggling and may have seven or eight months of inventory. There are areas like the Heights that are running as low as one month of inventory for certain price points. Yes, one month! If you have looked for a new home in the $700,000 in the Heights recently, you know of what I speak. Many of Houston’s most sought after markets, such as the Heights, Memorial and West University, are unquestionably in a Seller’s market.
I think the news is good whether you are buying or selling. If you are selling and you prepare your home properly and you price it right, there is an excellent chance that the sales process will be swift and profitable. If you are buying, it is a bit more challenging, but the good news is that interest rates are low and prices are on the rise. So, the sooner you buy, the more apt you are to gain in this fast-paced market. You will want to be working with a Realtor who can set realistic expectations for you and who can help you focus on the right properties so that when a great home comes on the market, you are ready to see it and make an offer quickly. Another important factor, and this is where experience comes in, is crafting the offer in such a way that you maximize your chances of winning in a multiple bid situation. I am seeing far more of these than I have for the past several years. An experienced Realtor can help you with the terms of your offer in order to make sure that your offer looks good on many levels, not just price. It is not always the highest bid that wins, there are sometimes other factors at play, such as closing date, that can sweeten the deal for the Seller. It is important that the Seller recognize that you are fair and will be reasonable to work with through the process, and simply offering reasonable terms will carry that message. Sometimes a personal letter stating why the home is perfect for you can clinch the deal. For instance, if the Seller has raised a family in the home and it is your intention to do the same, the Seller may feel compelled to work with you because they feel good about you having the home.
The Realtors at Circa are adept at competitive markets because we work in the neighborhoods that are frequently competitive even when most of the city is not. We would love to help you navigate these waters and find that perfect home. Give us a call today!