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Houston has a thriving real estate market that's perfect for anyone looking to settle down there. Yet home buying is an overwhelming process, especially in a city like Houston that plays by its own rules.  Here are just a few things you will want to know about buying a home in Houston.

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It's Important to Have Flood Insurance

As a result of its intricate network of waterways that criss-cross the city, Houston is known as Bayou City. The bayous in Houston's urban landscape provide beauty, but they can flood when heavy rains or hurricanes strike (neither of which is uncommon). Homes located near the bayous are most vulnerable to flooding, but those further inland are still at risk.

Houston homebuyers should do three things: First, find out if the new property is in a floodplain. Second, check if the house was flooded in the past. If neither of these applies, it's still a good idea to buy flood insurance. Due to man-made changes to Houston's landscape, what was not in a flood plain before could be in one in the future. 

During Hurricane Harvey, nearly 75 percent of homes that flooded were outside the 100-year floodplain, which made them exempt from the National Flood Insurance Program. As a result, people with flood insurance received an average of $100,000 more to rebuild from FEMA assistance. Especially in Houston, the nation's flooding capital, it's safer to be safe than sorry. 

Harris County, with an average property tax rate of 2.31 percent, is the 11th most expensive county for property taxes in Texas. For example, the property tax on a home appraised at $292,174, Houston's average sale price would be $6,600 per year. How to saving Money on Taxes.

Texas is one of only seven states without an individual income tax, which helps offset the high property taxes. Harris County also offers a variety of property tax exemptions to help homeowners lower their taxes. All homeowners in the county qualify for a 20 percent homestead exemption, which means if your home is valued at $200,000, you'll only pay taxes on $160,000. In addition, all homeowners are eligible for a $25,000 school district exemption, and veterans, persons over the age of 65, and homeowners with disabilities are also eligible.

Are you looking for ways to save money?   If married the exemption is treated as community property and considered as 100% ownership for each spouse. 

The interest rates are at record lows. 

In Houston, there are no zoning regulations, which results in wild west-like real estate development. It remains unclear whether the lack of zoning is good for the city or bad despite residents' rejection of all attempts to pass new legislation.

There is a possibility that a busy bar, a warehouse, or a backyard skyscraper may be built beside your new house. Conversely, Houstonians pride themselves on building whatever they want, wherever they want, like a house built from beer cans. Despite Houston's haphazard cityscape, its uniqueness speaks volumes about the city.

The lack of zoning in this area shouldn't deter you from investing-it's, not an outright free-for-all. Liquor stores, for example, cannot be built next to churches or schools, and parking requirements and lot sizes are governed by city ordinances. HOA deed restrictions, which help keep single-family residential areas strictly residential, are also strictly enforced. Deed restrictions vary by neighborhood with some HOAs being laxer than others.

Houstonians, above all, enjoy making their own decisions, which means homebuyers can choose a neighborhood with more freedom or structure.  Another question to ask might be, do I need an agent when buying a new construction home?

The city of Houston is looped by four interstates, the 610 creating an urban "inner loop" and the Beltway 8 creating an "outer loop." The loops divide Houstonians physically and socially.  In terms of which side is better, both sides provide valid arguments, but individual needs are the most important factor.  

Choose the loop that works best for you based on a few factors. For example, is more space more important to you than more convenience? Do you prefer an urban or suburban lifestyle? What about the price? Calculate your mortgage and find out what you can afford. 

Those seeking social and cultural amenities, a short commute, and urban ambiance should consider living inside the loop. The cost in the inner loop is as expensive as it is desirable. Living between the loops puts residents close enough to the city center, however, you will be further out and have a lower price tag. Living outside the loop is best for suburbanites, families, and those looking for more space and better value.

Although it is a lot to think about it is worth knowing that Homeowners have a higher net worth than renters.

 Despite persistently low inventory, buyers kept the Houston real estate market humming once again in September, positioning it for a record finish by the time the books close at midnight on December 31. According to the Houston Association of REALTORS (HAR) September 2021 Market Update, single-family homes sales rose 1.5 percent versus last September, with 9,226 units sold. That is up from 9,086 sales in September 2020. 

On a year-to-date basis, local home sales are 15.3 percent ahead of 2020’s record pace and up 21.6 percent when compared to 2019. Homes priced from $1 million and above – recently redefined by the HAR Multiple Listing Service (MLS) as the luxury market (it was previously defined as $750,000 and above) – led the way in sales with a 34.6 percent year-over-year increase. That was followed by the $500,000 to $1 million segments, which rose 28.3 percent. 

The $250,000 to $500,000 housing segment came in third place with an increase of 27.4 percent. The single-family home average price rose 13.4 percent to $372,408 and the median price climbed 13.3 percent to $300,000. 

Pricing overall has moderated after reaching record highs in June. Sales of all property types rose 1.6 percent year-over-year, totaling 11,285. Total dollar volume for September increased 16.9 percent to $4.0 billion.  “The Houston housing market continues to show strength as we enter the fall season, which is traditionally the time of year the market slows,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “We are on track for another record year of sales, however higher home prices and the potential of rising interest rates could impact buyer demand in the coming months.”  

Lease Property Update

Houston’s lease market slowed in September and rents rose. Single-family lease homes fell 8.2 percent year-over-year. Leases of townhomes and condominiums declined 1.8 percent. The average rent for single-family homes rose 9.0 percent to $2,115 while the average rent for townhomes and condominiums increased 6.3 percent to $1,793. 

 September Monthly Market Comparison

The Houston real estate market held to positive territory for a second straight month in September with mostly healthy readings across the board. Pending sales increased 11.1 percent. However, total active listings — or the total number of available properties —remain down 12.0 percent compared to the same time last year as buying remained strong.  Single-family homes inventory reached a 1.8-months supply. While that is down from 2.4 months last September, that is the biggest supply of homes the market has had in 2021 and was buoyed by a 1.3 percent increase in new listings. Housing inventory nationally stands at a 2.6-months supply, according to the latest report by the National Association of REALTORS (NAR). 

 Single-Family Homes Update

 Single-family home sales rose 1.5 percent in September with 9,226 units sold across the greater Houston area compared to 9,086 a year earlier. Strong sales volume among homes at the high end of the market pushed up pricing, however, it remained below the record prices set in June. The single-family home average price climbed 13.4 percent to $372,408 while the median price rose 13.3 percent to $300,000.  

The time it took to sell a home fell by about three weeks compared to September 2020. Days on Market (DOM) went from 51 to 29. Due to strong buyer demand and steady home sales, inventory registered a 1.8-months supply compared to 2.4 months a year earlier. That level is the highest of 2021, but below the current national inventory of 2.6 months recently reported by NAR. 

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 7,948 in September. That is up 8.7 percent from the same month last year. The average sales price rose 12.8 percent to $368,253 while the median sales price climbed 15.7 percent to $295,000.   

Lack of inventory leaves consumers few homes to buy (thegiffordgroup.net) 

 After the Houston housing market’s 13-month run of positive sales was abruptly interrupted in July, August saw a return to increased sales volume with inventory levels improving and prices showing signs of moderation while remaining higher than last year. These trends were facilitated by an influx of new listings and strong ongoing buyer demand. July’s sales decline was an anomaly with volume that could not rival the unprecedented surge of closings in July 2020 following COVID-related market disruptions.

According to the Houston Association of Realtors (HAR) August 2021 Market Update, single-family homes sales rose 8.5 percent versus last August, with 9,890 units sold. That is up from 9,118 sales in August 2020. On a year-to-date basis, local home sales are 17.4 percent ahead of 2020’s record pace.

Homes priced from $500,000 to $750,000 held the lion’s share of sales volume with a 48.5 percent year-over-year increase. That was followed by the $250,000 to $500,000 segment, which rose 31.8 percent. The luxury segment, comprised of homes priced at $750,000 and above, saw a 30.5 percent year-over-year jump in sales. The single-family home average price increased 14.0 percent to $380,233 and the median price climbed 15.2 percent to $310,000. Pricing has eased a bit since setting record highs in June.

Sales of all property types rose 9.2 percent year-over-year, totaling 12,036. Total dollar volume for August shot up 26.7 percent to $4.3 billion.  

“The Houston housing market is beginning to show signs of easing, which was to be expected with summer behind us, schools back in session, and inventory levels still exceptionally low, albeit improving,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “We are also hearing anecdotally that there aren’t quite as many competitive bids on property listings as we observed earlier this year, which drove prices into record territory in June.”

The June ‘Close to Original List Price Ratio’ for single-family homes was the highest ever — 100.3 percent — with a majority of buyers paying above list price for homes on the market. In July, it was 100.2 percent, however in August, it retreated to 99.6 percent, supporting reports that the high-dollar buying trend is cooling. Find out what your house is worth in Oct 2021 today! 

Lease Property Update

Consumer demand for lease properties was mixed in August while rent prices were up. Single-family lease homes fell 10.2 percent year-over-year. Leases of townhomes and condominiums edged up 1.8 percent. The average rent for single-family homes rose 9.6 percent to $2,153 while the average rent for townhomes and condominiums increased 6.9 percent to $1,765. 

August Monthly Market Comparison

The Houston housing market returned to positive territory in August after July ended a 13-month stretch of sales gains due to a surge in pandemic-delayed home closings in July 2020 that outpaced the current market. In August, single-family home sales, total property, and total dollar volume all rose. Pending sales increased 8.9 percent. However, total active listings — or the total number of available properties — fell 14.4 percent compared to the same time last year.

Single-family homes inventory reached a 1.9-months supply in August. While that is down from 2.6 months a year earlier, that is the biggest supply of homes the market has had in 2021 and reflects a 10.9 percent increase in new listings. Housing inventory nationally stands at a 2.6-months supply, according to the latest report by the National Association of Realtors (NAR).

 Single-Family Homes Update 

 August single-family home sales quickly rebounded from July’s negative report, climbing 8.5 percent with 9,890 units sold across the greater Houston area compared to 9,118 a year earlier. 

The single-family home average price climbed 15.3 percent to $389,197 while the median price rose 13.9 percent to $309,910. Those are the second-highest pricing levels in Houston real estate history.

The single-family home average price increased 14.0 percent to $380,233 while the median price jumped 15.2 percent to $310,000. Those figures are below a record-high pricing set in June 2021.

 The time it took to sell a home was nearly cut in half versus August 2020. 

Days on Market (DOM) went from 51 to 26. 

Inventory registered a 1.9-months supply compared to 2.6 months a year earlier. That level is the highest of 2021 but is below the current national inventory of 2.6 months recently reported by NAR. Broken out by housing segment, August sales performed as follows:

• $1 - $99,999: decreased 32.4 percent
• $100,000 - $149,999: decreased 33.5 percent
• $150,000 - $249,999: decreased 26.6 percent
• $250,000 - $499,999: increased 31.8 percent
• $500,000 - $749,999: increased 48.5 percent
• $750,000 and above: increased 30.5 percent
• 
  

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 8,584 in August. That is up 14.7 percent from the same month last year. The average sales price rose 13.2 percent to $375,354 while the median sales price climbed 16.9 percent to $304,000.   

Lack of inventory leaves consumers few homes to buy (thegiffordgroup.net) 

 Single-family homes inventory reached a 1.8-months supply in July! 

Houston-area home sales were down this July compared to last. However, that is because COVID-related home closing delays during Q2 2020 finally pushed through that July as most of the pandemic lockdowns were lifted. The resulting surge of pent-up sales cemented July 2020 in the real estate history books as a record-setting month that could not be rivaled by the rapid-fire pace of the current market. 

According to the Houston Association of Realtors (HAR) July 2021 Market Update, single-family homes sales were down 6.1 percent compared to last July, with 10,159 units sold versus the historic 10,822 that sold a year earlier. However, when compared to July 2019 — an average month of home sales with volume totaling 8,921 — the Houston housing market was up 13.9 percent. On a year-to-date basis, local home sales currently exceed 2020’s record pace by 19.1 percent.

Once again, homes priced from $750,000 and above led the way in sales volume with a 36.7 percent year-over-year increase. That was followed by the $500,000 to $750,000 segment, which rose 18.9 percent. The single-family home average price increased 15.3 percent to $389,197 and the median price climbed 13.9 percent to $309,910. That marks the second-highest pricing of all time behind last month’s record-setting figures. 

Sales of all property types fell 3.7 percent year-over-year, totaling 12,383. That is the third greatest volume of all time behind June 2021 (13,115) and July 2020 (12,865). Total dollar volume for the month rose 11.4 percent to $4.5 billion.  

“We know anecdotally that the Houston real estate market is still red-hot, but the statistics make it appear to be slower than a year ago because of the surge in home closings that took place last July when the market began to normalize with the lifting of pandemic-related restrictions,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “Assertive investors and cash buyers are still controlling the tides of this seller’s market, but hopefully that will moderate with a continued influx of new listings.”

In June 2021, the ‘Close to Original List Price Ratio’ for single-family homes reached 100.3 percent — the highest ever. That means that a majority of buyers paid above the list price for homes on the market. This July, it was 100.2 percent, indicating that this high-dollar buying trend continues. 

Lease Property Update

As in June, consumer demand for lease properties was down in July, and rent prices were up. Single-family lease homes fell 20.1 percent year-over-year while leases of townhomes and condominiums dropped 10.8 percent. The average rent for single-family homes jumped 11.4 percent to a record $2,162 while the average rent for townhomes and condominiums increased 5.8 percent to $1,756. 

July Monthly Market Comparison

The Houston housing market saw 13 consecutive months of positive sales come to an end in July as a result of a statistical anomaly. A surge in pandemic-delayed home closings in July 2020 set record levels that were no match for even the robust pace of the current market. 

Single-family home sales and total property sales registered declines versus last July while total dollar volume rose. Pending sales increased 2.4 percent. However, total active listings — or the total number of available properties — remain 20.6 percent lower than this same time last year. 

Single-family homes inventory reached a 1.8-months supply in July, down from 2.9 months a year earlier. However, that is the greatest supply of homes that the market has had in 2021 and reflects a 7.8 percent uptick in new listings. Housing inventory nationally stands at a 2.6-months supply, according to the National Association of Realtors (NAR).

 Single-Family Homes Update Single-family home sales fell 6.1 percent in July with 10,159 units sold across the greater Houston area compared to 10,822 a year earlier. The decline reflected pandemic-related delays in closings during Q2 2020 that finally pushed through to record levels that July once lockdowns were lifted. However, in comparison to July 2019 — an average month of home sales — the Houston housing market was up 13.9 percent.  

The single-family home average price climbed 15.3 percent to $389,197 while the median price rose 13.9 percent to $309,910. Those are the second-highest pricing levels in Houston real estate history.

 The time it took to sell a home fell by almost four weeks compared to July 2020. Days on Market (DOM) went from 56 to 26. Inventory registered a 1.8-months supply compared to 2.9 months a year earlier. That level is the highest of 2021 but is below the current national inventory of 2.6 months recently reported by NAR. Broken out by housing segment, July sales performed as follows:

• $1 - $99,999: decreased 38.0 percent
• $100,000 - $149,999: decreased 37.7 percent
• $150,000 - $249,999: decreased 37.8 percent
• $250,000 - $499,999: increased 12.0 percent
• $500,000 - $749,999: increased 18.9 percent
• $750,000 and above: increased 36.7 percent
• 
  

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 8,859 in July. That is up 1.1 percent from the same month last year. The average sales price rose 17.2 percent to $388,876 while the median sales price climbed 15.3 percent to $305,000.  

Lack of inventory leaves consumers few homes to buy (thegiffordgroup.net) 

HOUSTON — (June 9, 2021) — Houston area home sales set new records in May as consumers took advantage of historically low-interest rates in snapping up an ever-dwindling supply of properties for sale. What resulted was a nearly 50 percent jump in sales volume compared to the same month last year, when real estate was still in the process of recovering from coronavirus-related lockdown orders. Limited supply, strong buyer demand and increased construction costs all contributed to record-high home prices. 

According to the latest Houston Association of Realtors (HAR) Market Update, single-family homes sales surged 48.2 percent compared to last May, with 9,702 units sold versus 6,546 a year earlier. That marks the greatest one-month year-over-year sales volume increase of all time and is the market’s twelfth consecutive positive month of sales. On a year-to-date basis, home sales are leading 2020’s record pace by 29.5 percent.

Homes priced from $750,000 and above led the way in May sales volume, shattering all previous measurements with a whopping 291.0 percent year-over-year increase. That was followed by the $500,000 to $750,000 segment, which rocketed 166.0 percent. This unprecedented surge in high-dollar homebuying is responsible for pushing pricing to record-setting levels. The single-family home average price rose 29.7 percent to $387,105 and the median price increased 21.7 percent to $304,000. 

Sales of all property types totaled 12,100 – the second highest volume of all time. That is up 55.5 percent from May 2020. Total dollar volume for the month soared 100.5 percent to $4.4 billion.  

“We are witnessing the most energized Houston real estate market in history,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “Sellers maintain the upper hand, and buyers are not just meeting their demands. They are exceeding them, as we hear endless accounts of offers coming in that are thousands of dollars above list price. It’s difficult to predict how and when this incredible housing run will end.” 

Lease Property Update

Consumer demand for lease properties waned in May while rent figures rose. Single-family lease homes fell 26.8 percent year-over-year and leases of townhomes and condominiums declined 3.5 percent. The average rent for single-family homes jumped 10.6 percent to a record $2,025 while the average rent for townhomes and condominiums increased 8.5 percent to $1,716. 

Single-Family Homes Update

Single-family home sales leapt 48.2 percent in May with 9,702 units sold across the greater Houston area compared to 6,546 a year earlier. Heavy sales volume among homes at the high end of the market propelled pricing to levels that broke last month’s record-setting highs. The single-family home average price climbed 29.7 percent to $387,105 while the median price rose 21.7 percent to $304,000

Lack of inventory leaves consumers few homes to buy (thegiffordgroup.net)