May 01, 2008

           In a time when real estate sales in most national markets remain uncertain, the Houston real estate industry is flourishing, according to local experts. “The number of people from outside our state and country who are looking to buy in the Houston area is promising, and leaves us poised as a nationwide leader in real estate sales,” says John A. Daugherty, Jr., owner and president of John Daughtery, Realtors, Houston’s preeminent luxury real estate firm.

            According to Mayor Bill White’s office, there are a number of reasons why Houston—the third largest housing market in the United States—is a coveted place to buy a home. One notable reason is the city’s robust job market. Since 2004, 250,000 jobs have been added to the region, including 100,000 in 2007 alone—a staggering 8 percent of all new jobs created in the United States. Many jobs are predicted to be added in 2008, particularly in the areas of energy and the sciences.

            “Houston has enjoyed a comparatively robust housing market, thanks largely to local job growth,” Michael Levitin, Houston Association of Realtors (HAR) chairman, said recently. “Home buyers in Houston stand to benefit from low interest rates, affordable pricing and a good selection of inventory.”

Another reason why the residential real estate market in Houston has not experienced the price declines that have occurred in other cities is because the city did not enjoy the same level of price appreciation other housing markets experienced between 2003 and 2006, says Daugherty.

However, home prices in Houston remain strong, with the average sales price for single-family homes recorded as $190,233 in January 2008, up 4.9 percent versus the same period last year, according to HAR. This data demonstrates the higher value and lower cost of living found in the Houston market, which inspires home buyers and investors to get into the market while prices are considered affordable.

Additionally, Houston’s low- and high-end single home markets also saw price spikes, with increases of 32.5 percent among homes priced below $80,000 and 30.3 percent among homes priced above $500,000. The median price in the townhouse/condominium segment in Houston also rose from January 2007 to January 2008, to $128,250.

John Daugherty, Realtors’ sales reinforce these promising figures: The company’s total sales volume for 2007 was $1,127,000,000, its best year ever!

Houston’s many notable tourism destinations, including NASA and local museums, have added to the city’s global appeal. As a result, most real estate experts predict that the demand for housing city-wide will continue to rise in the coming years.

The bottom line for those looking to invest in Houston area real estate? “Houston is a city of opportunity, and the outlook of the real estate market here is overwhelmingly positive,” says Daugherty. The Greater Houston Partnership clearly agrees—recently it announced a new slogan, “Opportunity Houston—All the World—One Region.”