Navigating the Houston real estate market in 2024 calls for smart strategies and flexibility. Houston is buzzing with activity, with sales volumes even higher than last year. It’s still a seller’s market, meaning there aren’t a lot of houses available, and prices are expected to go up by 2-4%.
Buyers have some hurdles like higher prices and tough competition in popular neighborhoods. But if you’re prepared and informed, there are plenty of chances out there. Making good decisions is key, so it’s important to know how the market works, keep an eye on interest rates, and talk to local experts.
Whether you’re buying your first home or investing, there are the top 5 things buyers should know in Houston’s real estate market today.
If you have questions, don’t hesitate to contact your concierge at (281)781-4348, or for assistance, visit Simien Properties.
1. Inventory Is Up, but the Best Homes Go Fast
Houston’s real estate market in 2024 gives buyers more choices. Inventory levels have gone up to about 3.6 months’ supply. This means more homes are available, offering a variety of options in different neighborhoods and price ranges.
But even with more homes on the market, the best ones go fast. Areas like West University, the Heights, and Memorial still attract a lot of interest. These spots have great schools and unique features, making them very desirable. However, homes here don’t stay on the market for long.
Well priced and well located homes also sell quickly. On average, it takes about 65 days to sell a home in Houston now, which is a bit longer than during the pandemic. However, move-in ready homes in prime locations still get snapped up fast, often with multiple offers.
To get your top choice, be prepared:
- Get preapproved for financing so you can act fast when you find a home you love.
- Work with an experienced Realtor who can alert you to new listings and help you make a strong offer.
- Be ready to make quick decisions because hesitation can mean losing out to another buyer.
Being flexible with your timing and criteria helps you take advantage of the increased inventory while staying competitive for the best homes. This balance is key in Houston’s fast moving real estate market.
2. Affordability Is Still a Challenge
Houston is known for having relatively affordable housing, but rising home prices are making it tough for buyers. The city’s growth and economic development have increased demand, which is pushing property values up in many areas.
Mortgage rates also play a big role in affordability. Even though rates have dropped to around mid 6%, they still make monthly payments higher. This makes it harder for buyers to stick to their budget, especially with higher home prices.
When you’re planning to buy, remember to think about the total cost of owning a home. It’s not just the mortgage:
- Property taxes: Houston has some of the highest in Texas.
- Insurance: Homeowners’ insurance costs can vary a lot depending on where you live and what kind of property you have.
- Maintenance and repairs: Older homes or bigger properties might need more upkeep, which can add to your expenses.
Knowing these costs helps buyers set a realistic budget and avoid financial strain.
Example
A buyer looking at a $300,000 home with a 6.5% mortgage rate might face:
- Monthly mortgage payment: ~$1,896 (excluding taxes and insurance)
- Annual property taxes: ~$7,500
- Homeowners’ insurance: ~$1,200 per year
These extra costs can really change how much home you can afford. That’s why it’s so important to plan ahead and look at the big picture.
3. Tariffs Impacting New Construction, Consider Resale Homes Instead
Rising tariffs on imported building materials are really shaking up the real estate market in Houston. These higher costs are being passed on to buyers, making new homes less affordable than expected. Things like lumber, steel, and appliances now come with bigger price tags. This pushes the cost of a new home thousands of dollars higher than just a few years ago.
Three Key Impacts of Tariffs Today
- Higher Costs for New Construction: Builders are paying more for essential supplies because of tariffs. This leads to higher prices for new homes. Even smaller single family homes see price hikes since many materials, from nails to cabinets, are affected.
- Resale Homes Offer Immediate Value: Move-in ready resale homes avoid these extra costs, making them more competitively priced. Many resale homes have recent renovations or upgrades, offering great value without the uncertainty or wait time of new builds.
- Delays and Uncertainty in New Builds: Tariff related supply chain issues can slow down construction projects or extend timelines unexpectedly. So, existing homes with flexible closing schedules become more attractive for buyers who need to move quickly.
Knowing how tariffs affect local pricing helps buyers compare their options confidently. Choosing between new and resale homes comes down to budget, timing, and personal preferences. In Houston’s market today, looking at move-in ready resale options might make your money go further, especially as tariffs keep pushing up material costs for builders.
4. Smart Home Features and Energy Efficiency Are In Demand
Smart home features and energy efficiency are now must haves for many buyers in Houston. People want homes that make life easier, save money, and stay comfortable, especially with the city’s hot weather and love for new tech.
Energy efficiency really makes a difference in Houston’s climate. When summer heat rolls in, things like good insulation, double pane windows, and ENERGY STAR appliances become big selling points. These features help keep your house cool without sending your energy bills through the roof. They also attract buyers who care about the environment and want to lower their carbon footprint. Plus, these upgrades pay off over time, saving you more than just money up front.
A Few Popular Smart Home Features:
- Automated lighting systems let homeowners control brightness and ambiance from their smartphones.
- Smart thermostats like Nest or Ecobee help regulate indoor temperatures, adapting to Houston’s heat while saving on energy bills.
- Security systems with cameras, remote locks, and motion sensors offer peace of mind whether you’re at work or away on vacation.
These upgrades bring a sense of control and security that appeals to a wide range of buyers, especially those who value convenience in their daily routines.
Boosting Value in a Competitive Market
Homes with smart technology or energy saving features usually sell for more and go off the market quickly. These upgrades make a home shine among Houston’s many choices. Sellers often showcase items like tankless water heaters or solar panels to attract buyers.
More people are looking for smarter, greener living spaces now. Features that used to be “nice to have” are becoming “must have” for many house hunters in Houston.
5. Location Flexibility Can Unlock Better Value
Exploring neighborhoods beyond well known areas can reveal hidden gems and better prices. Houston has a variety of communities with unique traits and price ranges. By looking outside the popular Inner Loop, buyers might find great value without losing convenience or amenities.
A local expert can really help in this search. They know about up and coming neighborhoods that have growth potential, guiding buyers to areas they might not consider but offer big advantages. For example, suburbs like Cypress, Manvel, and Tomball have developed a lot recently. These places offer more space, newer homes, and often better prices than the inner city.
Being open to different locations can maximize value:
- Commute: Check the commute to work or other important places. Suburbs usually have good infrastructure and connectivity.
- Amenities: Look for nearby shopping centers, parks, and healthcare services.
- School zones: The quality of schools affects many families’ decisions. Research school ratings and their impact on property values.
Buyers who focus on these factors while considering emerging neighborhoods might find properties that offer great value for money. The suburbs not only provide more space but also new homes with modern features that attract many homebuyers today.
Conclusion
Strategic home buying in Houston’s 2024 real estate market means being adaptable and making smart choices. Keep an eye on market changes, like how many homes are available, price trends, and new neighborhoods that are popping up. Think about things like what you can afford, the latest smart home features, and how flexible you can be with location to tackle any challenges.
Want to kick off your home buying journey with confidence? Reach out to a local expert today and discover the wide range of options Houston has waiting for you.
If you have questions, don’t hesitate to contact your concierge at (281)781-4348, or for assistance, visit Simien Properties.
