It is officially Q2 of 2019 – with the changing economy over the last twelve months, let’s review how the real estate market is doing today.
The last two quarters of 2018 showed a decline in the housing market. Indicators included a slowdown in market growth, a decrease in home buyers, and an increase in interest rates. In fact, for the first time in seven years home prices in the San Francisco Bay Area, one of the strongest real estate markets in the country, declined. The last time this market witnessed a decline was at the bottom of the pervious housing crash.
However, the overall United States economy has actually seen positive growth. Recently, the Commerce Department reported that the US economy experienced unexpected and robust growth in Q1 2019. The Bureau of Economic Analysis reported that GDP (gross domestic product) grew at an annual rate of 3.2%, significantly above the projected 2.1%.
What about in Baytown?
Contrary to some predictions last year, Baytown has remained relatively strong in their housing prices. Home values have increased 8.5% in the last year, with an averaging selling price equaling $200,000. However, price per square foot has increased slightly more – it is up 12% (at $102) since April 2018.
In the last year, homes have been selling on average at 2% below their listing price. Their average time on market is generally around 49 days (this does not include time in escrow).
Should You Sell Your Home?
Although predictions were not 100% accurate, the market is still not showing signs for continued strength. Again, analysis are predicting that sellers will slowly be losing their leverage. Here are some points to consider, all which indicate why now may be a good time to sell.
- As of now, there are still home buyers entering the market. Interest rates have not increased since January 20, 2019, which was the first increase of the year. 2018 witnessed four separate hikes in the Federal Reserve – another similar year could deter thousands of potential buyers in markets all around the US.
- Additionally, homes have appeared to maintain value. This is always key for anyone who is looking to move – the higher the equity in their home, the better position they will be in at close.
- There is uncertainty in the market noted by the difference between the growth in the US economy and the decline in the real estate market.
- With continued anticipation of the potential of a real estate crash, selling in 2019 may prove to be beneficial, specifically in comparison to waiting until 2020. The constant uncertainty of the real estate market, combined with an uncertain economy and government administrative leadership, the future of housing prices and the overall economy is not a confident guarantee.
Do You Want To Learn More?
As a homeowner, it is imperative that you understand the current market trends and the anticipated market trends for Q2, Q3, and Q4 of 2019. Lack of knowledge can have a major impact on your financial position, which often includes your preparation for retirement as well. Therefore, we want to help you learn more about your position as a homeowner, and educate you on why now may be a beneficial time to move.
Who Are We:
A final note – make sure you are getting your information from a reliable source – just as lack of education can cause damage, obtaining information from a bad source can be just as detrimental, which is why we want to ensure to you that we have the expertise and experience to help you. We are Gulf State Homebuyers – we have been working in the Houston real estate market for over twelve years. We specialize in buying homes in all conditions, providing our clients competitive all-cash offers.
We purchase homes that are:
- Vacant…no tenant, no problem. We understand the challenges and expenses that go along with getting that next tenant in, so we take that problem away from our clients.
- Facing foreclosure…we stop clients from getting their home foreclosed on, which helps them save their credit.
- Investment properties…whether it is good or bad tenants, we can take over the lease and help you transition out of your investment property.
- Flooded and damaged homes…as said above, we buy homes as-is. This means that any type of damage to the home, from fires, floods, or personal destruction, don’t need to be fixed before we buy.
- Condos…HOA fees are welcome.
- And more!
To learn more about us, please visit our website at www.gulfstatehomebuyers.com.