Covid-19 has affected the lives of every individual. It has led to a sudden transformation across industries, and real estate is no exception. But, despite long restrictions forced upon people due to the pandemic, the demand for housing in Houston continues to rise.
In fact, the pandemic is the reason behind this sudden surge. As many individuals had to put their home-buying plans on hold during the lockdowns, the post-pandemic era is witnessing a boom in demand.
Owing to this upward steep, the sales and prices of real estate are increasing. Montrose is a diverse and centrally-located neighborhood in Houston, which makes it a favorable location for residential homes and real estate investments. Kingwood Area and Cinco Ranch are also great neighborhoods for buying a property. That is why there is a great demand for Montrose, Houston apartments and houses.
It is predicted that the same will continue in the coming year. The prediction is, of course, based on the current trends and market analysis.
Current Trend: How Does Houston’s Real Estate Market Look?
The Houston real estate market has stood strong throughout the Covid-19 situation. According to HAR, home properties falling in the price range from $500,000 to $1 million were the most sold in October, increasing over 49% compared to 2020 for the same month.
Even the Thanksgiving holiday season seemed not to affect the market. Home sales in November 2021 were up by around 12% compared to November 2020. The increasing demand led to an upward push across all prices. Considering the demand and lack of inventory houses, the increase in Houston’s property prices in 2022 is evident.
Factors Contributing to the Increasing Prices
The biggest factor influencing Houston’s real estate prices is the increasing demand against declining inventories. Like other metro areas across Texas, Houston has faced a very low stock. These supply levels have a lot to do with how the market performs in 2022. If the inventory continues to decline, the price will increase exponentially.
Another factor is the increasing population in Houston. According to the US Census Bureau, Houston’s population has increased around 10.7% during the past decade. As the population increases, so will the demand and prices.
Houston Real Estate Market Forecast
Currently, the average price of a typical house in Houston is between $210,000 to $230,000. Considering all the factors highlighted above, and the current key metrics, the Houston real estate market is set to have an upward steep. It is expected that the average price will increase around 20% in the next five years.
The market can give a return on investment of around 4.15% year-over-year. Further, the good news for investors is that if the trend of low-level inventory and high demand continues, the returns can be even higher than expected. The sellers will have the upper hand while negotiating with the buyers in such a scenario.
If you are looking for a property in Houston, now is the right time to get one. Buying a property in Houston will help build your investment portfolio and generate constant cash flow in the form of rents.
Peeping Into the Future of Real Estate Business Operations
Alongside the property price, even the real estate agents and businesses are all set to transform. Here are some real estate business operations trends that will continue to emerge in 2022.
Leveraging the Digital Platforms
Not only Houston or Texas, but the global real estate market will witness continuous growth in using digital platforms to buy and sell houses. People are now leveraging direct to sales platforms for listing and buying properties to drop the middleman.
Also, the remote workforce has become the new norm post-pandemic. Hence, even the businesses and agents have now adapted to using digital platforms to connect with prospects and maintain good relationships.
The Ever-Increasing Use of Technology
Advancements in modern-day technologies like Artificial Intelligence, Big Data Analytics, Virtual Reality, Blockchain, etc., will revamp the real estate businesses in 2022. AI and Big Data Analytics will help analyze tons of data to help organizations make better decisions for streamlining operations. Technologies like Virtual and Augmented Reality will enhance the buying experience.
All the current metrics show that the increase in the prices of the properties in Houston in 2022 due to low inventory and high demand. The increase in sales, prices, and demand all depend on several controllable and uncontrollable factors. But, in these uncertain times, one certain thing is that we will be witnessing a thrilling ride in 2022.