During the past few months, a lot of economists have become concerned about the state of the American housing market. A handful of factors, including a slump in oil prices, will undeniably play a major role in determining the future of the housing market, as well as future home prices. The truth of the matter is that the housing market deviates substantially from one geographical location to the next. The downtown area of Indianapolis is a perfect example of the current market. Some streets are prosperous with homes selling well above their sticker prices. On these rare streets, homes are snatched off of the market a few hours after being listed.
However, if one ventures a few blocks over, they’ll find rundown homes, which can be purchased for as little as $10,000. These homes will remain on the selling block for an extensive duration and may never be sold. Nonetheless, most experts and real estate agents agree that Indianapolis’ housing market is better than it has been in more than a decade. Real estate listings have decreased 5.7%, while sales have increased by nearly 6.5%. During the first quarter of 2016, some 2,600 homes were sold. So, there is hope for those that intend to sell a home before the year ends. Take a trip to Houston Texas and you will experience something entirely different.
It is widely known that Houston and Texas in general are very reliant on oil. When the prices of oil plummet, Texans tend to fall into rough times. As the prices of oil have continued to remain at record lows, home renovations and home sales within the state has dropped off substantially. And luxury homes have been hit harder than anything else. According to recent reports, the home sales for property valued at one million dollars or higher have decreased by nearly 8% compared to the previous year. It is highly likely that this trend will continue, until oil prices are able to make a recovery. Today, luxury homes in the Houston area remain on the market for an average of 85 days, before their sold. This is substantially longer than that of later year.
The real estate market has definitely hit a barrier, but there are a few American cities that are still seeing rising home prices. Among these cities are Miami-Dade, Palm Beach, and Broward, with a 7.1 percent price increase year-over-year in August. This is great news for South Floridians that are considering putting their home on the market, but not so fortunate news for perspective buyers. Portland, Seattle, and Denver are seeing higher price jumps than Miami. Luxury real estate in some South Florida cities have been hit harder by the slowdown that the rest of the market.
Affordable homes are up for a bidding war, as prices continue to escalate. This is probably due to the limited inventory on affordable housing. Experts are blaming the real estate market slowdown on a weak global economy and strong dollar. Unfortunately, America’s housing market is headed for a slowdown. Some select markets might be able to thrive, but as a whole, the housing market will likely experience a stagnant 2017.