5 Facts About the Baytown Market You Need to Know
Whether you are looking to buy, sell, or invest in real estate, it is imperative that you are familiar with the local market. We here at Gulf State Homebuyers specialize in purchasing homes, all cash, in the Baytown area. We offer unique services to those looking to quickly or easily get out of their home – it does not matter if it is for quick cash or to pay off a mortgage, we can help.
However, before suggesting that you sell, we want to ensure that you are knowledgeable about the current market. Selling a home can be a big decision and life changing, so let’s make sure you are educated! Below we have outlined 5 facts about the Baytown market you need to know to make an educated decision about the future of your home.
1. It is a SELLERS market
Currently the real estate market is a sellers market – this means that selling prices are high and generally speaking, inventory is low. According to a recent HAR report, the current average listing price is $239,650. There has been almost a 9% increase in home prices over the last year, and over the next 12 months there is a 0.3% forecasted increase in prices.
Although the prices are anticipated to continually rise, beware of the concurrent rising interest rates. Rates are hovering at 4%; however, by the end of Q4 2019, the GSE expects rates on 30-year fixed mortgages to reach 5.1%– meaning anyone looking into buying a house, now’s the time to pull the trigger. Therefore – sellers should get ready to sell if they want to get the most for their house.
2. Don’t forget, renting is an option too!
Market trends in Baytown show a slight fluctuation over the last 12 months in Baytown rental rates and the number of rentals.The last 6 months has displayed a positive opportunity for renters – rental rates have declined almost 6%.
How does this compare to the last 12 months? In October 2017 Baytown saw the 12 month record low for both number of renters and rental rates – however, since then, a slight increase has been continuous. There is no expectation for rental rates to decline anytime soon, so if you are looking to transition, now may be the best suited option.
3. Do not end up in a foreclosure
Most individuals who have financial difficulties lose their homes to a foreclosure – one event that no one wants to experience in their life. This occurs when an individual can no longer afford to pay their mortgage and the bank takes over their home. This causes homeowners to lose all equity and be left homeless. Currently in Baytown, 1.7% of homeowner in Baytown have delinquent mortgages – this is higher that the national value, which is 1.6%. If YOU are nearing foreclosure on your home, it is time to get out before it is too late.
4. Unemployment is HIGH
National unemployment rates for June 2018 were at 4.1%. But in Baytown, unemployment is hitting 9.8%! Not only does this indicate less buyers, but it also directly correlates to the declining rental rates. With less money to allocate to rent, homeowners renting their homes need to reduce the rents to match the market.
These high unemployment rates also indicate potential trouble in the local economy – the future of the market is uncertain.
5. Don’t Depend on Vacation Renters
If you are holding onto your investment home for the opportunity to take advantage of vacation renters, maybe through an online service such as AirBNB, be weary. As of July 1, 2018 there were reported over 300 entire homes available to rent in Baytown, Texas. Therefore, if you are planning on falling back on passive income for your uninhabited property, expect to invest to create a unique experience for potential renters. You unit will need to stand out to make the the renters intrigued.
These are just a few of the impactful trends occurring in the Baytown market – all which directly impact the price of your home. From the trends we are seeing, this may be an opportunistic time to assess your property value and determine if it is an appropriate time to sell. Always remember, there is no guarantee in the real estate market, and an unexpected change can occur. As an agency, we offer FREE property valuations that can help you make an effective decision on what to do – is it time to sell, buy, or hold? Just contact us and we can get you started.