Houston is North America’s fourth-largest city, but in the wake of hurricane, Harvey things might change. The current state of the Houston real estate Market has been thrown into confusion due to many homes being flooded or destroyed. Real estate business is one of the driving forces in the American economy. Houston being of the best cities has been affected in the recent times. Residents and potential land owners are asking how the natural disaster will affect prices and demand for homes in the area. In 2016, Houston’s real estate market was steadily consistent. The area was fast becoming known for maintaining its sales trends and rewarding investors.
With low foreclosures and an interest rate of almost half the national average, Houston was an alluring place to live. However, in light of 2017’s Hurricane Harvey, real estate investors and potential home owners alike have lost confidence in area’s success. During the destructive hurricane, many areas that had not expected to flood, flooded. Potential property owners have been thrown into confusion as previously attractive areas were flooded with devastating effects.
The owners of houses that did not flood are looking to cash in and some residents in Willowbend have raised their property’s cost by 20%, through selling with companies like we buy ugly houses – Houston Capital Home Buyers. Meanwhile in the upmarket neighbourhood, Meyerland, flooding has occurred three times in the past two and a half years, plummeting the property value. Many are hesitant to take risks on houses that have flooded before, preferring to stick to neighborhoods with a perfect track record.
With over 75 thousand homes damaged by flooding, even the prices to repair sodden homes are rising. Displaced residents are desperately seeking replacement housing in the form of rentals. Houston agents confirm that the few rentals remaining after hurricane Harvey, were snapped up within a few days by displaced and desperate families. Online platforms have been flooded by pleas from residents unable to find housing. Dr. Joel N. Myers, founder and chairman of AccuWeather, stated that Hurricane Harvey was the costliest and worst natural disaster in American history’. Most experts agree that Houston’s market will only return to normal in 6 months to a year. Deals in motion will be delayed and rescheduled and people intending to buy property in the near future, will reconsider.
Perhaps most significantly, crews originally planning to construct new properties, will now be pulled away into reconstruction work resulting in the supply of unflooded homes will shrinking while the demand increases. Reportedly, only 15% of homeowners in Houston had flood insurance at the time of Harvey and those with little equity and serious damage, will likely leave their homes and start afresh, neglecting their loan repayments.Potential buyers are being advised to be thorough with their research about property. If they are interested in a house, inquires should be made about retention ponds and flood insurance requirements. In homes that have a history of flooding, it is recommended that flood insurance be purchased. The current state of the Houston real estate market is tumultuous, but residents are being urged to keep their heads up as the previously stable and healthy Houston real estate market will return to normal in time.