Houston is a fantastic place to call home.
The nation’s fourth largest city has a booming economy that supports almost every job type. Houston has the highest ratio of park land to citizens, the best theater and museum district outside of New York City and the most delicious restaurants in the country, making it easy for everyone in your family to find something they love about their city.
If you are moving to Houston, are sick of renting or want to invest in a move-up home, you need to consider the best time to buy a home in Houston.
When Will Houstonians be Buying?
With more than one in four Houstonians saying they will buy their first home within the next two years, according to the second annual Bank of America Homebuyer Insights Report, it might be tempting to jump into the market right away.
However, “both real estate market conditions and your personal financial situation play a significant role in the best time to buy a home,” says Bryan Sherman, divisional sales executive for Bank of America. “Currently, we are seeing that it is a ‘buyer’s market’ for properties priced at more than $500,000, which may encourage experienced buyers to purchase move-up homes in Houston.”
According to the report, 40 percent of aspiring buyers in the Houston metro area plan to buy their first home by themselves instead of with family or a spouse, which is more than those nationally (27 percent) and any of the 10 local markets surveyed.
Additionally, in looking back at their homebuying experience, current Houston homeowners’ advice to prospective owners includes: start saving for a home early (66 percent), consider the maintenance costs and unexpected expenses (43 percent) and create and stick to a budget (39 percent), says Sherman.
Seasonality Affects the Prices of New Homes
Like all real estate markets, the prices of new homes for sale in Houston fluctuates depending on the time of year. Traditional wisdom has home shoppers searching for and closing on new homes during peak months in the spring and summer. (An increase in local inventory and lower transition cost associated with moving when children are not in school helps push many families to explore new homes during these peak times.) Unfortunately, with more people looking to buy new homes during these times, the prices of homes naturally rise.
“In terms of the time of the year, conventional wisdom says to buy during the peak homebuying seasons of spring and summer when there may be more homes available,” Sherman says. “However, that also translates to more competition and potentially higher prices, which is why one shouldn’t neglect fall and even winter for home shopping.”
According to the Houston Business Journal and data from NerdWallet, the best time for price-conscious shoppers to buy a new home in Houston is not during spring and summer but in winter, early January to be exact. Even though home inventory floods the market during the peak seasons, homes for sale in January cost on average 8 percent less than they would during warmer months.
Assess Local Inventory
Houston has a number of fantastically unique communities — such as The Woodlands, League City, The Heights and Katy — that can help enrich all types of lifestyles. Home shoppers have a diverse range of communities to explore when deciding where and how they want to live in Houston.
Before you buy your home, you should research other homes for sale and other communities to make sure you are investing in a good home at a good price. The real estate market in Houston offers a plethora of new homes to choose from, with more than 60 homebuilders around the city.
Deciding the right time to buy your dream home in Houston can take time and research, but can end up saving you thousands of dollars off the cost of your home. Understanding the Houston real estate market is easier than ever, empowering homebuyers like you to live a life you love in the home you always dreamed about.
After graduating in 2016 from The University of Texas with a degree in English, Sanda Brown became a content writer for the BDX with a focus on website copy and content marketing.
At the BDX, Sanda helps write and edit articles on NewHomeSource.com, writes website copy for builders, and manages a team of freelancers that work on additional content needs.