Our real estate market holds steady and managed to resist most of the effects of the energy downturn during the first three months of the year. According to industry experts we should see a healthy growth in home sales and prices – at a slower pace than in 2015. This slowdown rather than an indication of a problem is more of a return to normalcy,
What factors will continue to help our market remain stable:
Diversity: The Houston Chronicle recently mentioned “The Woodlands is very diverse and has grown into an employment hub, with energy companies, technology firms, high-end retailers and an emerging medical corridor. These days, there are just as many people driving to the township for work as residents leaving for jobs elsewhere in the Houston region.”
Millennials: “More millennials are entering the work force every day, and state and local officials say many of them are finding their niche in The Woodlands. According to The Woodlands Development Company, the total population for 2015 was 109,679 people, with millennials accounting for 22 percent, which is slightly higher than the state’s millennial population.3. New-home construction focuses more on affordability.” Community Impact Newspaper.
Interest Rates: There is a clear possibility that mortgage rates will likely be volatile in 2016 (the 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level). This is a great incentive for buyers to make a decision sooner rather than later.
Rentals: Rent costs are likely to only go up more this year, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today. This should continue to strengthen The Woodlands rental market.
If you are If you are considering buying, selling or leasing a home or commercial property, I can guide you through the process every step of the way. Call, text or email us. As always, we are here to help!