A quick update on the latest news from our real estate market.
What’s happening in the housing market? To answer the question, we first have to understand what we are comparing the numbers to. The Houston real estate market has seen a 10% to 11% decline in the number of transactions in 2022 compared to the previous year. However, when we look at the full-year total transactions, Houston’s numbers are similar to 2020 and actually ahead of 2019, which was considered the last “normal” year in the real estate market.
The surge in the real estate market in 2020 and 2021 was due to the pandemic and the resulting increase in remote work, which allowed people to move to different parts of the country. Additionally, the low mortgage interest rates of 2-3% encouraged many people to enter the market and buy a home sooner than expected.
Despite the decline in the number of transactions, the Houston real estate market remains resilient due to the continuous job growth and population increase in the city and metro area. Over 150,000 new jobs were added to the metro area in 2022, and the population grew by over 200,000 people in the past few years. This has resulted in growth in the housing market as more people need a place to live.
Activity in the real estate market has picked up in the past month, and it is expected to be a more balanced market in 2023. If you have any questions regarding buying or selling a home, mortgage rates, or the market outlook, feel free to contact us by phone or email. We look forward to hearing from you.