Agent Essentials

Real Estate Agent Blog


2022: What to Expect in the Houston Real Estate Market
December 20, 2021

2022: What to Expect in the Houston Real Estate Market

by The CE Shop Team

Are You Prepared for Houston’s 2022 Real Estate Market?

After another uncertain year, the Houston real estate market has been resilient and shows the true spirit of H-Town. Houston is expected to be one of the top cities in Texas for real estate activity in 2022.

With demand steadily increasing, low mortgage rates, and rapidly rising home sale prices, real estate agents in Houston should gear up for another scorching year.

2022 Houston Real Estate Outlook: Hot

As of October 2021, the average home in Houston was valued at $241,052, a 17.6% increase year-over-year (YoY). That figure is expected to increase as Zillow predicts the market will accelerate and rise by another 13.5% within the next year. An astonishing 26.6% of homes sold above listing price, an increase of 36.8% YoY.

Houston Housing Data Zillow
Source: Zillow

Surprisingly, home sales across Texas decreased by 4.0% in October 2021, but Houston’s housing market certainly didn’t follow that trend. Instead, home sales grew by 5.3%. For buyers in this market, purchasing a home won’t be easy. The number of newly listed homes decreased by 0.2%, and the number of homes for sale also decreased by a staggering 31.7%. Competition in the market will be fierce for buyers, but a bright spot for sellers is the number of days that homes spent on the market. The number of days properties spent on the market fell to 26 days on average, a 10.3% decrease YoY.

George Ratiu, manager of economic research at Realtor.com, offered new buyers the following advice in an interview with Chron.com: "The bottom line for buyers is to make sure you're comfortable with your timeline and budget – and especially for younger buyers making this massive financial decision for the first time.” After all, there isn’t much inventory to go around.

Rent prices in Houston have increased by 28.8% YoY, a significant bump from last year’s decline of 1.0%. While renters will need to shell out more money each month, current homeowners are doing well. A total of 0.8% of Houston mortgages were reported as 30-89 days delinquent as of March 2021, and Texas homeowners gained an average of $43k in equity this year. Only 1.6% of Texas homes lost equity in that same time frame. So, while new transactions continue to boom and Texas attracts many out-of-state residents, current homeowners will keep thriving.

2021-2022 Houston Real Estate Market Data

Zillow Home Value Index

$241,052

Home Value Change YoY

+17.6%

One Year Home Values Forecast

+13.5%

Rent Price Change YoY

+28.8%

The Percentage of Homes With Negative Equity

1.6%

Mortgage Delinquency Rate

0.8%

Available Housing Inventory

14,741

Buyer’s or Seller’s Market

Seller’s

Market Insights for Houston

In October 2021, the Bureau of Labor Statistics reported that Houston’s unemployment rate was 5.4%, down from 7.4% in June 2021. The emergence of the COVID-19 Delta variant held a noticeable grip on the state’s economy, which, naturally, impacted the job recovery. That being said, the unemployment rate is expected to continue to decrease in 2022. As healthy economic activity often correlates with growth in the real estate industry, decreasing unemployment rates are a promising sign for agents regarding the year ahead.

Houston continues to be an attractive city for both Texans and Americans alike. Houston is the most populous city in Texas and the fourth-largest city in the United States. Houston’s population is estimated to be 2.3 million. Growing 10.7% since 2010, H-town has been growing at a rate of 0.1% annually.

This is not a surprise for Houstonians, who have long known why Houston is such a great city to live in. Not only does Houston have one of the best dining scenes in the country, but the Lone Star State is also a hot spot for those with new remote work positions looking to escape the high taxes, hustle and bustle, and harsh winters of northern cities. Here’s how Houston ranks:

As we enter 2022, Houston real estate agents will need to be at the top of their game. With the lack of housing supply, buyers and agents should prepare for bidding wars. There are a myriad of opportunities on the horizon, meaning there’s never been a better time to help your fellow Houstonians find the property of their dreams.

Ready to Become a Real Estate Star With the Best Houston Real Estate Courses From The CE Shop?

Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Texans with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Houston? Join the Texas Real Estate Facebook Group!

Comments