Low Oil Prices? Now Is the Time to Buy in Houston.
While Houston is home to many major industries, there’s no denying that the oil and gas industry remains one of the most influential. In fact, many real estate experts, while concerned with COVID, are just as closely monitoring the price of Texas sweet crude. That’s because high oil prices generally translate to more high-paying jobs, more demand for housing and higher prices, but discerning buyers who’ve been through the ups and downs of the oil and gas sector know that when prices are low it’s a better time to buy.
And with mortgage interest rates as low as 3.150% for 30-year fixed mortgages? Now is the time to buy in Houston, especially if you or your client has been saving for this moment.
“Obviously with the losses that Wall Street has suffered as well as declining oil prices, we are keeping a watchful eye on housing market activity,” John Nugent, chairman of the Houston Association of REALTORS® told the Houston Chronicle.
Of course, the effects of COVID-19 and the uncertainty that comes with it has rippled through markets all over the world. Houston is no exception, however, the market is still carrying some serious momentum. As it turns out, many are looking to cash in on the low interest rates and affordable price points.
“It's about 20 percent cheaper than Dallas, and about 25 percent cheaper than Austin, so people are being priced out of both of those markets and they are coming to Houston,” Tim Surratt, a realtor at Greenwood King Properties and HAR board member told KTRK ABC13 Houston.
Data from the Houston Association of REALTORS® (HAR) also shows that single-family home sales in the Houston metro increased by 15.7 percent in June (compared to June 2019.)
Oil prices, on the other hand, have remained steady at about $40 per barrel with investors betting on prices increasing. Thanks to a historic stimulus package issued by the European Union, oil futures rose sharply overnight.
“That will feed demand and allow a risk-on attitude to drive markets higher and create economic forces that will burn more oil,” Phil Flynn, senior market analyst at The Price Futures Group told MarketWatch.com.
That means home prices in Houston aren’t far behind. Are you ready to rally?
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