We follow the data from HAR (Houston Association of Realtors) very closely. This is a good representation of the market in Houston but we suggest you follow the market in which you are buying in closely. Don't always rely on national news outlets to take a national approach to your local market. Make sure you know whats going on where you have boots on the ground so you can make your decisions wisely.
According to the HAR report:
Closings were at a 16.1% decline year over year. There were 2,455 closings in this week in 2021 where as 2,059 closings were reported in this week of 2022. With mortgage interest rates climbing and continued rising property prices, there could be a sign of slowing. With that being said, Houston still only has about 2 months of inventory and supply is still an issue in our market.
New listings were down 3.9% which does not help our supply issue. As supply still is an issue, any reduction in new listings will not help this competitive market.
Pending listings were down 29.9% this week from 3,050 in 21 to 2,138 in 22 in this same week.
Off Market Listings went up 6.1% from 885 in 21 to 939 in 22.
What does this mean? We are still in a supply issue in this market as we have been for some time. Jet Lending will keep you up to date on how the rising interest rates may be affecting the market.
What happens when you see this? Well, when the supply and possibly the ability of the properties to purchase go down, rentals and rent goes up. We always suggest you have a rate & term or cash-out option on your flip to hold as a long-term or short-term rental as an exit strategy. Having multiple exits to your investment is what helps you stay a float when your plans change. Get with out team to help you map out selling, refinancing, and/or purchasing your rental properties with our 30 year DSCR loans. Let's make sure you have the ability to change directions and adapt in any market.