Favorable Home Prices Remains Top Reason to Buy a New Home in Houston

Interwoven circles listing the ten different considerations people when planning a move to a new home.

There are many reasons why purchasing a newly built home is enticing to Houston homebuyers. Graphic Courtesy of Builders Digital Experience.

While home prices in Houston continue to rise, a recent study from Builders Digital Experience (New Home Source’s parent company) found that the number one reason Houstonians continue to buy newly built homes is favorable home prices.

The number of people who considered buying a new home based on favorable prices increased 18 percent over last year, even though prices have continued to increase since 2012.

When looking at the top three reasons Houston residents are considering buying a new home, it’s apparent that Houston’s improving economic situation in the city has had a strong impact on homebuyers’ attitudes. Favorable interest rates and higher incomes represent the second and third reasons that contributed to buyers looking for new homes.

Beyond economic reasons, buyers are also making the move to accommodate life changes with triggers that include plans to increase family size or a change in family circle or composition. Personal preference of location is also a strong trigger. The desire to live closer to schools came in seventh on the list, with the desire to live closer to work was eighth and the desire to live in a safe neighborhood was 10th. Being tired of one’s current home also made the list at number five, a 13-percent increase over last year.

Overall, Houston has seen strong economic improvement, which has an impact on the decision to buy a new home. Unemployment rates dropped to 5.5 percent in Houston, down from a high of 8.9 percent in 2011. Median family income has stayed steady and though interest rates have increase in the last year, they remain low. With a better economy, more people are more willing to buy.

It’s evident that even though home prices continue to increase, the economic situation for families continues to improve at a higher rate. This alters a buyer’s perception, making them feel more confident that they are getting a bargain. With higher incomes and lower unemployment rates, families are more likely to make changes such as considering having a baby or moving to choice location.

With an improved economy, it’s evident that consumers continue to buy new due to low prices, better interest rates and personal preference. The Houston housing market is showing a slow and steady recovery sustained by these changes. Looking to next year, Houston can expect to see these top 10 factors change as prices increase to levels residents no longer find appealing and interest rates that are less favorable.

If you are interested in making the move to a new home, you can search new homes in Houston on 
New Home Source, the world’s largest listings of new homes.
Dan Bagby is a contributor to NewHomeSource.

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