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The Changing Landscape of the Houston Real Estate Market
Houston is the most populous city in Texas and the fourth largest in America. The city is known for its strong economy and business-friendly environment. In recent years, the Houston real estate market has seen a lot of change. The market has become more expensive and competitive, and there has been an increase in demand for luxury properties. Houston remains a popular destination for home buyers and investors despite these changes.
Home prices increased throughout all regions of Houston.
The Near Northside experienced the largest increase in home value over the past year, with 22%. Other areas that saw increases more significant than ten percent were the Washington Avenue – Memorial Park, Greater East End, and Greater Heights. The smallest increase was four percent, observed in the Bellaire Triangle area.
The steep rise in home values has made housing more expensive for Houstonians.
It is now significantly harder to purchase a house with a $200,000 or less budget. Buyers can expect to find homes in this price range in communities with low amenities and amenities which are inconveniently located. Naturally, the number of these types of homes is falling as people move closer to downtown. A budget of $200,000 typically gets buyers a three-bedroom house in the community of Acres Homes or near Hobby Airport. This would be a great price point for first-time homebuyers who want to stay in the outer ring of Houston.
Budget of $400,000 and up:
Homes in this price range are still relatively scarce in most parts of Houston. However, there are many higher-end properties available in some areas, such as River Oaks and Broad Oaks. For example, in the community of Broad Oaks, buyers will find luxury homes priced between $400,000 and $1.5 million. The median home value for this area is $622,400, which reflects a 0.7 percent loss over the past year. Homes in River Oaks can typically be purchased for between $700,00 and $3.5 million. The median home value of this area is $1,400,700, which represents a one percent increase over the past year.
Budget of $800,000 and up:
This price range tends to offer buyers more selection than higher price ranges. Some luxury communities such as Tanglewood and Westmoreland offer homes priced between $800,000 and $2.4 million. However, other areas such as South Oaks and Bellaire Triangle also have high-end properties for this budget range. For example, in the Bellaire Triangle, buyers can find a wide variety of properties with price tags that begin at $1 million. The median home value in Bellaire Triangle is $425,400, which represents a 4.1 percent increase over the past year.
Summary
The Houston real estate market is changing and becoming more expensive. Despite this, the city remains a popular destination for home buyers and investors. The budget of $200,000 or less will get you a three-bedroom house in the community of Acres Homes or near Hobby Airport. Higher price ranges offer more selection but are still relatively scarce in most parts of Houston.