Real Estate Surge in Houston

With mortgage rates at the lowest they've ever been, a lot of renters are considering whether they should make the jump to purchase a home.

So what are the pros and cons right now?  

Rents are forecasted to rise nationally 4.6 percent next year, and that’s following a 4.1 percent increase this year, according to the National Association of REALTORS®.

What’s more, rents are expected to continue to climb for the foreseeable future, rising more than 4 percent a year for 2014 and 2015, forecasts Reis, a market research firm. 

Rents are rising even more rapidly in some areas. For example, rents in San Jose, Calif., and San Francisco have been climbing at a 13 percent to 15 percent annual rate as of late last year, according to MPF Research. Other metro area seeing rent increases of more than 5 percent by the end of September include Oakland, Calif.; New York; Denver; Houston; Nashville; and Columbus, Ohio, MPF reports. 

Meanwhile, fixed-rate mortgages continue to break records. Thirty-year fixed-rate mortgages last week averaged a new record low of 3.53 percent during the week. 

October was a record-breaking month for Houston real estate as property sales rose 35 percent over October 2011, according to the Houston Association of Realtors.

Prices rose significantly and the inventory of homes for sale dropped to its lowest level in 11 years. The realty market is demonstrating an exceptional surge that is surprising to even the real estate pros. 

Source: “U.S. Mortgage Applications Drop in Latest Week,” Reuters (Nov. 28, 2012)

Source: “Rents Expected to Climb Steadily, According to Forecast,” USA Today (Nov. 27, 2012)

Source: https://houston.culturemap.com/newsdetail/11-20-12-12-16-the-wave-continues-houston-home-sales-surge-sets-october-sales-record/