Now is the time to buy in Houston!
Posted on Tue, Dec 08, 2009
Historically the Houston housing market responds to a major market correction with subsequent shortage of inventory and an increase in pricing. Examination of the current indicators would suggest 2010 fitting that model. Consider that major builders are publically traded companies. The executives of those comapnies must turn end of the year profits for bonuses. Liquidating inventory helps generate revenue. Even selling below costs may help get dead inventory off the books in 2009 and help 2010 be a profitable year. I have talked with few builders that plan on building any spec homes for the spring. They and their lenders are being very cautious. Banks are not loaning on speculative building. Henceforth the majority of homes available in the spring and summer will be contract to build homes that were negotiated 120 days before. Builders do not negotiate prices on contract to build homes. It is the base price plus upgrades and premiums. So it stands to reason that New Construction homes will be going up in price. The best deals are to be struck now before the end of the year and certainly before the weather changes and we have more daylight. Less inventory and higher prices on new homes will have a positive impact on the resale market, lowering days on the market and increasing prices.
Add the extension and expansion of the $8K and $6K tax credit through Spring and ending in the summer and it appears that the market will be shifting from a buyers market to a sellers.
Agents that are asleep at the wheel over The Holidays and not sharing the future in an informative educational way with their clients are neglecting their fidicuary responsibilities. Buyers deserve to know in advance of media reports (which are always 6 months late) that now is the time to act if they expect to get the best deals.