Continued low interest rates sound so good to some area prospective home buyers until they get sticker shock from increasing housing prices. Jennifer Wauhob, the President-Elect of HAR, says area housing costs are 12% higher year over year here, which isn't as bad as Atlanta where they are 24% higher. "I will say the benefit of being here in Texas is that our average home price is still less than in most of the country." Still, even with a low interest loan, an average American household will still have to spend about a third of their income on their mortgage. Home costs are rising due to the heightened competition brought on by low interest rates.
Houses are Selling Like Hotcakes in Houston
Texas household incomes have risen - but far less than 12% in the same period! With fewer prospective buyers, the competition will cool. And Wauhob's prediction is not dire. "I don't think we're necessarily going to see a CRASH any time soon. You can know that your investment is probably going to make you money over the long term."
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Houston area housing prices have gone up 12% in the last 12 months.