The recent downturn of the real estate market here in Texas has left many people quite confused as to what is going on. Some claim that it is due to poor lending practices, while others say it is because homes are just too expensive for most individuals.
However, there is one major factor that has little to do with the price of houses- taxes!
Texas is a very progressive state when it comes to taxation. This means that even wealthy individuals and corporations have lower tax rates than those who are less affluent.
In fact, some cities such as Pasadena actually experienced a population decrease after their extremely high property taxes drove away residents.
Many believe this higher tax burden is why home prices are so high in the Lone Star State. If this were the case then California, Florida, and New York would be experiencing much more stable housing markets instead of ones that are constantly changing.
Luckily, this isn’t the case anymore. Recent legislation has been passed that will help stabilize our already steady housing market. What about all these lost sales? Well, we can chalk those up as part of the market cycle.
More people have money to spend now than before so if you want to sell your house, that’s okay! Just make sure you don’t try to take advantage of the new laws by paying minimal or no taxes.
This affects the market
The recent downturn of the housing market has many different causes, but one major factor is how the real estate industry operates here in the United States. Most large brokerages start their day by accepting what they are told to accept as fact when it comes to asking for a price reduction or even a sale of a house.
These companies begin gathering information about similar houses in an area and determine a “market value” for them all. They then apply this same formula to your home to come up with a “value” for it too.
This means that instead of your house being valued on its own merit, theirs is influenced not only by the condition of the house, but also by the amount of money they believe other similarly-styled homes have sold for in the past.
Because these firms use the same formulas to calculate values across the board, this can lead to some very strange numbers. Many times, they will underestimate the true value of a property.
A lot of people make a good income from owning a house, so they don’t want to reduce the price too much because they aren’t sure whether they’ll be able to sell it at its reduced cost. As a result, they may leave money on the table, which hurts the homeowner looking to move into or out while staying within his or her budget.
Houston is close to Texas beaches
As discussed earlier, whether you are looking to buy or sell a home, an area with lots of people and activity will help your property be more active. Having easy access to nature and outdoor activities can boost your mental health tremendously.
Houston has some of the best natural areas anywhere. It’s very accessible via public transportation, and there are many parks within easy driving distance. Some of the most well-known include Hermann Park, which features several sports fields as well as the Museum District, where you can spend time at the Contemporary Arts Center or Rice University.
The greater Katy area also boasts excellent access to both water and land. There are plenty of rivers for fishing, boat ramps for recreational use, and lakes for swimming and boating. People who enjoy traveling outside make it a popular destination for sightseeing and spending time visiting attractions.
This affects the market
The recent rise of housing prices has largely been fueled by rising demand due to higher income levels and more people buying or renting homes, says David Rumbach, CEO of RealtyTrac.
“That combination creates increased pressure for home sales,” he notes. “It also puts upward pressure on house prices because sellers feel there is greater competition for their property.”
While many believe that the real estate bubble will eventually pop, this isn’t necessarily the case.
Some experts say we are still in an inflated market, while others argue it’s more like a sustainable plateau right now. And although most agree that the market won’t remain calm forever, some think we have already seen the peak.
What does all of this mean for you? As a potential buyer or seller, understanding whether the market is inflated can help determine your next steps. If you are looking to purchase a home, you should know if the timing is right.
If you are thinking about selling yours, figuring out when the market peaks may give you an idea of how much value your home possesses.
Houston is close to many major cities
While some may consider San Francisco or New York to be more attractive, there are actually several other incredible places you can live in America if you do not want to make a big city your home.
Houston is one of those beautiful locations that people have forgotten about because they have lived their lives there and therefore don’t recognize it as an amazing place.
If you ever wanted to explore the great diversity of cultures found within Texas, then look no further than our capital city!
Not only does Houston offer diverse culture, but it also has some of the best educational opportunities outside of the Ivy League schools.
This affects the market
The recent downturn of the real estate market has people all around the country talking. With every new development, people have an opinion about whether or not it is a good thing for your business or if you should invest in this area or that area.
Some say that the down turn will make it easier to get rid of underperforming real estate agents because they will be less successful than them!
However, there are also those who believe that the downturn will help push through changes that need to happen within the industry. For example, some brokers feel that requiring that anyone wanting to become a licensed broker go through more rigorous education and training is necessary so that only professionals can represent sellers and buyers.
There are also those who think that having higher requirements makes sure that only qualified individuals can work as a real estate agent so that their clients will receive top-quality service.
Houston is close to many famous landmarks
Located about two hours south of Dallas, Houston is known for its diversity as well as it rich culture. You will find here people from all over the world making this city their home!
Houston has some beautiful natural features like waterfalls, mountains, and lush green parks. There are also several monuments and museums dedicated to history or art.
The Texas State Cemetery is an impressive cemetery with lots of space and great views. It was designed by Frank Lloyd Wright and is considered one of his most unique designs. The state of Texas purchased the land back in 1965 and it’s now open to the public.
We can’t talk about beauty of Houston without talking about its skyscrapers. Many tall buildings have been built around Downtown, the area that houses the majority of the offices, restaurants, and entertainment areas.
There are so many ways to take transit in the city so getting to work or going to see a show doesn’t require too much effort. Some of the best mass transportation systems include the bus system, METRORAIL, and light rail.
This affects the market
The other major factor that has influenced how well or poorly the real estate market is performing in any area is whether or not there are national companies with offices in the area.
We saw this during the Great Recession when large corporations began to close down their operations in hard-hit areas, leaving many people out of work and causing a downturn in sales.
That’s what happened in the southern United States back in 2008 and 2009. But it doesn’t look like we will see another recession anytime soon, so most big name brands have decided to go forward with opening up new headquarters in Texas.
There are currently over 2,000 corporate headquarter spaces available for lease in the greater Houston metropolitan area alone!
And according to Business Facilities, a commercial real estate research company, “the average cost per square foot at which these facilities were leased was $65.” So you can imagine just how much space those companies are taking advantage of every month.
This article will talk more about some of the bigger names in the business that are investing in the Houston area, as well as some tips for professionals who would like to take full advantage of the booming housing market.
Houston is close to Louisiana
While some may consider Texas to be an expensive place to live, one must look beyond the cost of gas, food, and entertainment to determine how well or poorly the market for real estate is doing in the state’s largest city-Houston!
If you are looking at buying or selling a home here, there are several things you need to consider. First, does this property go up in value? Second, what kind of neighborhood is it in? Third, what type of house is it? Are there lots of similar homes nearby? And finally, what price do people around your area have paid for similarly sized and styled houses?
The first thing we want to make clear is that while the housing market in Houston has been improving, it’s still far from being a strong seller’s market like many believe it to be. If you’re thinking about investing in real estate, now might not necessarily be the best time to do so.
While there are areas where rising prices are readily apparent, there are also times when properties drop in value substantially before they find their new “value level.” This can make it difficult to come into possession of the home you wanted if you were planning on moving right away.
Fortunately, these downturns are typically shorter than those during which sellers’ markets exist, so most people are able to realize a good return on their investment.