Low interest rates for buyers as well as low inventory in the Houston real estate market has created some record-setting growth during the first part of 2021. A year ago, many experts were worried about what the pandemic would mean for real estate prices and the ability of consumers to buy, sell, and rent homes.
No one expected the market to be this hot.
All of the Houston real estate growth over the last nine or 10 months has created some opportunity for investors. Whether you’re looking for ways to grow your existing portfolio or you’re new to real estate investing and looking for some expert help, we have some important things you need to know about why you should buy, hold, and rent a high-quality, well-maintained home in Houston and the surrounding areas.
Low Inventory and High Demand are Driving Prices
If you own an investment property, you’re seeing your property values rise. This is great news for your ROI and your ability to leverage that investment if you’re thinking about acquiring additional assets to diversify or increase your investment portfolio.
If you’re looking for an investment property, don’t wait too long. Interest rates are still astonishingly low, but they’re creeping upwards slowly. And, home prices are only going up. The Houston real estate market set a record for single-family homes in February 2021, with prices jumping higher than we’ve ever seen.
Keep in mind that these records were achieved during one of the worst winters Houston has ever experienced.
Properties worth $250,000 and higher had a double-digit year-over-year percentage increase in sales in February. The market is seeing a lot of cash offers from investors who are ready to move.
Inventory will only grow tighter as we settle into spring.
Renting Out Your Houston Property
People are spending more time at home. They’re working from home, they’re going to school from home, they’re becoming far more particular about where they want to live and what they want to have available to them when they rent a property. A lot of well-qualified tenants are thinking they’d like to buy a home, but not for a few years.
This sets ups Houston rental property owners for a successful investment experience. If you’re renting out an attractive, well-maintained property in a good neighborhood that offers growth and amenities, you can expect to earn health monthly cash flows. That’s going to create some impressive long-term returns.
It’s tempting to sell the assets you have now. It’s a seller’s market. But, with the right tenants in place and the best Houston asset management company leasing, managing, and maintaining your home, you can set your own financial records by holding onto investment property.
There’s been some concern about the local economy and the impact that a huge drop in oil demand has had on local employers. However, that industry is coming back, tenants have found themselves reliably employed, and households in Houston are feeling fairly financially stable, especially considering what the national economy has weathered over the last year.
You can rely on a good pool of tenants who have not seen too much disruption in their finances. Our tenants have continued to pay rent and respect the terms of their lease agreements.
We think the sales market and the rental market in Houston will continue to perform throughout the year. This is no time to go it alone, however. Reach out for some professional investment advice and comprehensive help with property and asset management. Contact us at HNB Realty.