Because we buy houses in Houston, Big State Home Buyers is familiar with the Houston market and the reasons why inventory is low. And if you are trying to buy a house, you have probably noticed the same thing The real estate market, like all markets, is sensitive to changes in supply and demand. As we mentioned in our article “Should I Sell My House? | Houston”, the inventory in Houston is low………but why is that?
Available Inventory is Low Because of Negative Equity
One of the driving forces for the volume of inventory is the number of homes that are upside down, meaning the property is worth less than what is still owed. This negative equity forces people to either bring money to closing just to sell their home or undergo a short sale. As a result, more people who would like to list their home ultimately cannot afford to, do so thereby lowering the volume of inventory. (Zillow) Since we buy houses in Houston, some of our past sellers were people with negative equity.
Thriving Job Market Causes High Demand
Another cause of low inventory in Houston is the thriving job market. Many people are relocating to Houston and they need somewhere to live. This is driving the demand up, which is another reason why the competition level has increased so significantly. As we have been buying houses we have noticed that many people are able to sell their houses within days!
Slow Development of New Houses Leads to Low Inventory
With developers struggling to keep pace at the rate that homes are coming off the market, buyers have been left with no option but to bring the best offers they have to the table while in effort to outbid all the other homebuyers waiting right behind them. Although builders are buying land at a rapid pace, some say it could take 2-3 years to get the housing inventory fully back up in Houston. If you are looking to sell quickly, remember that we buy houses in Houston too! We have the experience, knowledge and resources to get your house sold fast with no hassle for you!