Did Houston have a picture-perfect 2010? Well, not exactly, but there are more than a few reasons to look forward to what the Houston real estate market has to offer in 2012.
Houston in 2012 will enjoy a stronger real estate market, thanks to steady increases in the energy-related job market. It was this market that kept real estate agents busy leasing commercial property and showing homes to relocating individuals.
Housing in Houston in 2012 may see about a 5-percent increase as we head into the upcoming year, and the median price of a Houston home is expected to increase from 2 to 3 percent this year. Although these numbers are lower than what we may expect historically, they are still showing a steady growth in the Houston housing market.
Foreclosures in Houston
Since 2010, foreclosure postings and actual foreclosures have declined, and most real estate experts expect these declines to further accelerate in 2012. These declines are likely attributed to the tight lending standards that took place starting in 2009. It is also likely that the financial industry has finally started to make headway in their backlogs of foreclosures resulting from the recession.
It is clear that in order to begin seeing a turnaround in the real estate market lenders must deal with the foreclosure problem, which has been a strain on the industry since 2009. It is also important to understand that lenders will experience issues now for foreclosures that occurred three years prior, meaning that they are just now facing the music from the steep increase in foreclosures in 2009.
Home Loan Lending in Houston
The national mortgage market is still expected to decline in 2012 about 25 percent, although the large markets in Texas, such as Dallas and Houston, are expected to outperform national averages due to the strong job markets found here.
Houston continues to experience increases in its energy sector, which always buoys along the real estate market.
There are plenty of good reasons to look forward to a healthy real estate market in Houston in 2012, so many real estate experts will be keeping a close eye on this market in the months to come.