Lower interest rates and job growth are driving the surge in Houston real estate.
The Houston real estate market is seeing some exciting changes. September 2024 brought a mix of results that are worth paying attention to if you’re looking to buy, sell, or invest. While home closings dipped slightly compared to last year, there’s a surge in listings and buyer interest. Active listings jumped 25%, and the pending sales index spiked by over 23%, suggesting that the market is heating up despite recent slowdowns.
Why buyer interest is surging. For the second month in a row, Houston has seen a double-digit increase in the pending sales index. What’s driving this momentum? One of the key factors is lower mortgage rates. Since April, rates for a 30-year fixed mortgage have dropped from 7.5% to 6.5%, giving more buyers the ability to afford homes and boosting overall demand.
A booming local economy. Another reason for the heightened interest in Houston real estate is the city’s robust economy. In August 2024 alone, Houston created an all-time record of 23,000 jobs. This is more than twice the number of jobs created in the same month last year. Since the pandemic, Houston has added over 250,000 jobs, attracting more people to the area and increasing the demand for both buying and leasing homes.
Low cost of living. Affordability is a major draw for buyers in Houston. According to the latest Cost of Living Index, Houston ranks as one of the most affordable large cities in the U.S. Living costs are 7% below the national average and 24% lower than many of the country’s major metro areas. This makes Houston an attractive option for those looking for value without sacrificing the benefits of a dynamic urban lifestyle.
Houston’s market is evolving, and these trends highlight why the city is becoming a hotspot for real estate. If you’re curious about what these changes mean for you or want more insights, don’t hesitate to contact us at +1 (855) SETH-BRO or email us at info@thesethbrothers.com. Let’s navigate this market together!
