New year and New Hopes

New year brings lots of hope among people, analysts, industry leaders and many others about the future growth of their industry or overall country. It is especially true for this year after seeing a anemic growth episode last year. It is rather a bitter sweet experience where there was little bit of economic growth in the first part and the curve starts to decline later on. No one is expecting for miracle to happen and but expect the scenario not to get worse and probably see some growth and sustain till the year end.

First reason being the Presidential election year. Adding to that, hung congress is going to continue with more obstacles on creating or passing any new laws or amending them. As per economy goes, corporate is hoping for better consumer spending to have production increase which should infuse job growth and decrease unemployment to some extend. In the housing front, NAR is expecting a continued growth in home sales market and decent decline in pre-owned and foreclosure homes inventory.

NAR released its latest pending home sales index figure few weeks ago and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.

With that not so bright background, let’s talk some local real estate market. Houston Real estate does seem to be starting out with good past 5 months of continuous growth on sales from last year. As per the report from HAR, year over year results are seems to have improved a lot. Many master planned communities around Houston like Cinco Ranch, Bridgeland, Towne Lake have increased their sales last year and progressing on their path to expansion. Houston job market is good and thriving due the oil companies. Unemployment is not a problem and many people are moving to Houston which will certainly increase the home sales and rental market as well.

Being said that, it is better to be cautious as the economic is still struggling to put his strong foot hold. For investors, I would recommend to buy only deals which are really good and able to rent out quick. For home owners, new homes are all over the town and builders are sometimes giving good deals to attract but make sure you got what you want before signing the contract.

I hope this new year brings prosperous to our country and to our local housing market.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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