We are happy to report more good news about Houston Real Estate. The following is a review of the key drivers of the Real Estate market.
Strong demand for homes has led to uncharacteristically low housing inventories. Remember, the holy grail of economics is supply and demand. During this time of short housing inventories, Houston’s rate of appreciation is running ahead of its long term average. This is good news for those investing in Real Estate.
Source: Houston MLS
The graph below depicts the number of lots being delivered to the market along with the number of new home starts (lot absorption). Lot deliveries fell by 80 percent from the peak in 2006 and have only recovered approximately 1/2 of the previous pace. The lack of lot inventory is holding back home builder’s ability to start new homes. Because of the long time frame to deliver lots to the builders, we believe housing will continue to be in short supply for several more years. Supply of housing cannot catch up with demand from previous population growth until the home builder's increase Houston’s housing stock to catch up with the population increase.
For your convenience, we have pulled a few of the salient points from the articles:
The pace of hiring has stepped up this year, with gains in payrolls over the last six months the strongest for any six-month period since before the 2007-09 recession. Houston's unemployment rate rests at 5.4 percent, well below the national average. For context, full employment is considered to be 4.5 percent (unemployment rate). Four and 1⁄2 percent of U.S. workers are considered unemployable.
Census data show city outgained all but NYC/Houston Chronicle.
It’s hard to find enough superlatives to describe Houston’s population growth and the increase in jobs to employee our new neighbors. While the city of Houston grew at an impressive rate of ￼4.4 percent, Harris County increased at 6.7 percent.
Executive Vice President McAlister Investment Real Estate
McAlister Investment Real Estate
David Jarvis is leaving Metrostudy for McAlister Investment Real Estate.
The lack of liquidity in the market, combined with continuing loan maturities, has created the "perfect storm" in many real estate markets in the United States.