Goodbye 2016, Hello 2017

With oil prices dropping and concerns in the energy sector, economists were not optimistic for Houston’s housing market this year. Against all predictions, Houston continues to flourish!  Our unemployment rate is one of the lowest in the country. Our suburban areas continue to grow and new developments are planned for 2017. Improvements continue for Houston’s inner city.

November marked another month of strong sales in the housing market according to HAR. Approximately 1,000 more homes were sold last month in comparison to 1 year ago including a 33% rise in luxury home sales. "It looks like the Houston real estate market is sprinting toward the 2016 finish line, based on the solid numbers in November’s report,” said HAR Chairman Mario Arriaga with First Group. “The market has shown tremendous resilience throughout the year in the midst of a struggling energy sector, and we are especially encouraged by the strong sales volume that the luxury home segment registered last month."

The Economic Observer reports that our current economy bodes positively for future mortgage rates. Wages are slightly higher than last year, job growth is higher than projected, and unemployment rates are lower than projected. All factors point to a decreased risk of inflation.

So what’s in store for 2017? Realtor.com says the trends for 2017 include a change of market for Baby Boomers and Millennials – two of the largest generations – as they enter the housing market or downsize for retirement. More home buyers will flock to the affordable housing available in the Midwest causing a shift from the coast inward and enforcing the current movement popular with the Gen X and Gen Y of homesteading and being more autonomous – growing their own food and relying less prepackaged items. Other trends include a slowing of price increases and less inventory but faster moving markets.