All Forum Posts by: Scotty Gifford

Home prices continue to climb this spring in Texas and for most of the country. The current market shows no signs of crashing. There is not enough inventory, and the demand to purchase homes remains strong. The result is the homes currently listed are bid up with multiple offers, leading to higher prices.

I know everyone has different reasons to buy, What are your reasons to buy in this market? 

Moving/relocation, rental purchase, First time home buyer, Fear of missing out on record low-interest rates, or something else? 

Here are some facts: According to the latest Houston Association of Realtors (HAR) Market Update, single-family home sales jumped 24.4 percent in March with 9,347 units sold versus 7,511 a year earlier. That marks the tenth straight positive month of sales. On a year-to-date basis, home sales are running 16.9 percent ahead of 2020’s record pace. Record low interest rates continued to fuel the buying bonanza, leading to multiple offer madness. We currently have 6 offers on a house that went live on Friday. 

It is easy to see the number of active listings in the Houston Region is down over the past 4 years.

Time frame is from Apr 2018 to Apr 2021 County is one of 'Brazoria', 'Fort Bend', 'Galveston', 'Harris', 'Montgomery' Property Type is 'Single-Family'

The single-family home average price climbed 19.9 percent to $370,847 and the median price increased 16.0 percent to $290,000.

Sales of all property types totaled 11,692 – up 31.5 percent from March 2020. Total dollar volume for the month shot up 55.8 percent to $4.0 billion.

Single-family home sales rose 24.4 percent in March with 9,347 units sold across the greater Houston area compared to 7,511 a year earlier. Strong sales volume among homes at the high end of the market pushed pricing to record highs.

The single-family home average price climbed 19.9 percent to $370,847 while the median price rose 16.0 percent to $290,000.

The time frame is from May 2020 to Apr 2021 County is one of 'Fort Bend', 'Galveston', 'Harris' Property Type is 'Single-Family' Results calculated from 70,425 listings

The time frame is from May 2020 to Apr 2021 County is one of 'Fort Bend', 'Galveston', 'Harris' Property Type is 'Single-Family' Results calculated from 70,423 listings

Selling a home took significantly less time than it did a year ago. Days on Market (DOM) fell from 65 to 45. With fewer new listings entering the market, inventory registered a record low 1.4-months supply compared to 3.4 months a year earlier. That figure is slightly below the current national inventory level of 2.0 months recently reported by NAR.

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 7,463 in March, up 29.1 percent compared to the same month last year. The average sales price jumped 21.4 percent to $364,037 while the median sales price climbed 21.2 percent to $285,000.

@Cody L.

Truth! :)

@Henry Clark

All great points!

I do believe know values are being pushed up because of low inventory and the super low rates. And that at some point the rates will have to Increase and more inventory will come on the market. So you are right prices could drop when that happens. And there are many other factors government, banks, the economy that could cause this market to crash down.

I just don't know when that will happen, as I doubt any expected 2020 to be up this much. The home values are up 5% or more in most markets across the US.

With that said. I wasn't thinking about half million dollars or more homes but more in the 300s price range homes. I play more in the "starter" homes 3/2 or 4/2 under 2000sqft as they cash flow nicely. It just nicer neighborhood normally appreciate faster...but to you point maybe they won't!

I have thought about self storage many times. It does make a great play in any market in America, as we love our stuff!

I definitely need to learn more about that arena, But I can see the possibility and potential!

Can you share your projected or actual returns on these projects?

Mortgage rates continue their slide lower and lower. I think it is a great time to buy if you were going to move anyway. We moved back in March and got 3.25% on a 30 year fixed mortgage before the Houston market got really hot. 

Wondering is anyone else considering moving up in House (price) because house values can be a hedge against inflation and/or, good use of credit to borrow at these 50-year record low-interest rates?
Maybe now is the time to move up to high-end rentals with less cashflow but better appreciation? 

The 30-year fixed-rate mortgage 2.67%, the lowest rate ever recorded by Freddie Mac, with records dating back to 1971. reference

https://magazine.realtor/daily...

I do feel pressure to look for ways to use this low rate environment to my advantage. I am still actively looking for more rentals, but I see lots of money chasing deals in this low-interest-rate environment. You have to be quick! I feel like everyone is looking for better returns on their money than the .5% you get on saving accounts!

I would love to hear everyone's thoughts on how to use these low-interest rates to our advantage?

Stacy, well I think that will depend on two things. What did your divorce decree state in regards to the house, and which in State the house residents?  

@Jasmine Hieke

I know pretty well Spring, I lived in both Tomball and Atascocita, just on either side of Spring for a combined 15 years.

And I have a rental in Spring.

Hopefully you found an good agent by now, but if not let me know..

And whenever you are ready for your rental let me know, I can help you find a good deal..

@Chris Hadley

Katy area.

Rentals in Spring, League city, South Houston.

Always looking for a home run!

@Evan Bonnell

I don't think you are crazy. Well no more than anymore else on here lol!

I would say, Do think about your decision. What are your desires and where you want to be in 3 to 5 years and does this take you closer to or futher away from your goals?

Also, You have to pay taxes on the 401k money someday to get it out. Taxed advantage or not.

This could be the opportunity of a lifetime, 3 years to payback on the taxes and you can invest into something that you love and can fully control.

don

@Nathan G.

Thanks Nathan,

I appreciate this!

A couple signed the lease last December, around September, the woman moved out.

She called in October asking for her deposit back. I told her that because her husband and her are still on the lease she was out of luck until then and he moved out as well. Now December is rolling around she is asking for her deposit back. The husband wishes to stay.

As long as he is able to pay, I am happy with him in the house.

The question is how do you handle the situation.

Move the husband to a month to month? A new one year with just him?

What about the deposit?