Would a housing correction be a good thing? (Houston: real estate, houses)

[philopower]

The whole appeal to living in Houston has always been its affordability and the area is really starting to lose that. I'm looking for a place in the 3rd ward of all places and all the decent places are more than 1k. This is too much and something has to be done about the affordability.

[predatorprey]

Be careful what you wish for.

[Failed Engineer]

I think it's coming in some areas, but no, I wouldn't ever call it a good thing.

[CountryCowboy]

I think there has been a slight correction already because of the oil and gas downturn, and oilfield services layoffs. Not a good thing for those affected. Helps buyers though. Rates staying low also helped. People in real estate say they noticed a slow down, for ones who will speak honestly, but a slow down off a hot market is a return to normal most places.

I just sold two homes - first sold in three days to a realtor looking to move up; other took 45 days but had four bidders in a bidding war. So market is improving, but it is a buyer's market still. If you can buy in, there are deals to be had. Bidding war was great - never had to negotiate - deals kept getting better. Property was turnkey ready, new carpet, new paint, new deck with fresh stain, refinished hardwood red oak floors.

It is a great market either way if you know how to play it. There is a lot of money sitting on the sidelines....

In six months, I think there will be more distressed sales. Hate to say it.

But one crazy guy with a rocket propelled grenade shoots a tanker ship in the Middle East, and the world changes direction on a dime overnight.

If you wait for the perfect time, you just may wait forever....

[JoeHito]

Originally Posted by CountryCowboy

So market is improving, but it is a buyer's market still.

Really, you think it's a buyer's market?

I agree with what others have said, I think in 6-12 months we're going to see a significant depression in local housing market. Economy is not great, energy markets are in really bad shape, problems with global economy, etc.

[jerbear30]

I don't think a dip in prices would be good for Houston, because it would signal the arrival of lasting problems within the local economy. That being said, I have no idea how housing prices got so high so quickly here. I don't understand how it can be sustainable given the amount of houses that cost 300k and above. There will be a slew of people who are now buying those houses who will realize they can't afford them. I could be wrong, but that's my hunch. Maybe there are just more rich people than I think.

[SuperPollito]

Depends. If prices drop, good for buyers and, theoretically, should help out with property taxes. Although realistically, it probably wouldn't.

Always two sides to every transaction though.

[predatorprey]

Originally Posted by SuperPollito

Depends. If prices drop, good for buyers and, theoretically, should help out with property taxes. Although realistically, it probably wouldn't.

Always two sides to every transaction though.

If housing prices drops significant amount, then our economy is in a pretty serious recession. Housing demand would generally be low because of uncertainty of income.

Like I said above to op. Be careful what you wish for.

[emirate25]

Actually Houston is very affordable and even in the inner loop areas. What people fail to say or explain is that, they want to live in only certain areas of the inner loop or Houston.

I drove through east downtown(past eastwood) and 288 and you have plenty of bargains yet close to the inner city living amenities.


Affordability is there...

[curbur]

Originally Posted by emirate25

Affordability is there...

..at the expense of safety and general well being.