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Appreciating Market is < 5 months of inventory, Depreciating Market is > 6-10 Months of Inventory |
All real estate is local and Houston is no exception. Despite the overall market conditions provided on the Welcome page, each market area of Houston has its own variations from the overall market.
Is your market area an appreciating or depreciating market?
Here's how to find out. Click open the geographical map below and locate the area of Houston where your home resides. Take special note of the number assigned to your market area. Then click on the Houston real estate market reports by area. On this report, locate the number that matches your market area from the map. While this gives you a synopsis of market metrics YTD in comparison to the previous year, the last category is "Months of Inventory". This tells the story of the type of market you are in. And of course, in a sellers market, homes sell faster than in a buyers market.
Balance = Months of inventory of 5-6 months
Double digit appreciation = 1-2 months
Single digit appreciation = 3-4 months
Single digit depreciation = 7-8 months
Double digit depreciation = 9-10 months
The Stages of a Market Cycle -
Most markets across the nation went into overdrive, but Houston did not. Historically, homes have appreciated at a rate of about 5 percent per year. In the six years between 2000 and 2006, appreciation was 89 percent, or nearly 15 percent per year. Today's correction is a move back to stability. The stages of a market cycle are such that the Investment Climate from 2000-2006 represented Minimum Opportunity and Maximum Risk. Now, and especially in Houston where homes did not appreciate like they did nationally, the Investment Climate is Minimum Risk and Maximum Opportunity. Now is the time to purchase real estate in Houston.
Got questions? We welcome any inquiries, just e-mail: toni@garygreene.com and if we don't have the answers, we'll find it for you!
Want statistical data on the region? Go to http://recenter.tamu.edu/mreports/HoustonSLBay.pdf
**Statistics derived from the National Association of Realtors® and compiled by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®
