Homes in the northeast section of Greater Houston have seen significant gains in value over the past few years. A recent survey of area home values identified double-digit gains for 2013, 2014 and 2015 in the Porter/New Caney East, Spring and Cleveland areas. In 2015 alone, the survey reported double-digit increases in the value of homes in Atascocita South, while homes in the majority of other local areas saw increases from 3 to 8 percent.
The tide, however, may be turning for 2016. Home sales in Houston fell 8 percent in July, an indication that the economic impact of declining oil prices may finally be catching up with the Houston housing market. Michael Clapp, team leader and broker at Keller Williams Northeast, said although the local housing market has not been impacted as strongly as other areas of Houston, a shift in the market may be underway.
“The overall Houston market has been one of the best in the country for the past several years, but the slow-down in the energy market has definitely had an effect on the market, starting this past spring,” said Clapp. “We’ve been fortunate that our area has been a little isolated because many of our homeowners work in a variety of industries and many who are in energy are in the production or chemical industry, which is located on the east side of Houston.”
Clapp added that the connection of the Grand Parkway to Highway 59 just north of Kingwood has also opened up opportunities for residents to commute all over Houston, making the area an ideal place to live.
Going forward, Clapp is optimistic, but also cautions sellers to be realistic in pricing their homes for sale as the market shift continues to be monitored.
“Entry market homes are still highly desirable and, with interest rates still at historic lows, it is a great time to purchase a home,” said Clapp. Clapp also said there has been an increase in inventory and a decrease in traffic to upper-priced homes in the area.
Clapp anticipates new construction home prices to decrease, resulting in better competition for resale homes.
“Sellers in all price points will need to focus on condition, staging and pricing to ensure they get the proper attention from buyers in the market,” said Clapp.
For 2015, homes in the northeast area of Houston on the HAR (Houston Association of Realtors) website sold for an average of $220,115 after an average of 38 days on the market. For the first seven months of 2016, the average sales price for the northeast area was $223,314, after an average of 46 days on the market.