“Overall, Houston real estate has experienced a moderation in valuations over the last year. It is uneven, but the market for certain property types has slowed and some submarkets have weakened,” says Houston valuation expert Matthew Deal of Deal Sikes & Associates. “Properties must be evaluated on an individual basis. But, in general, we believe the era of skyrocketing values has ended in the Houston area.”
Job growth in southeast Texas has been sputtering, following a sharp drop in oil prices and layoffs at energy companies. West Texas Intermediate crude fell from a high of $107 a barrel in 2014 to less than $50 a barrel in today’s market.
“Some property types, such as Class A office buildings, are generally weaker, while industrial and retail properties remain robust,” said Mark Sikes, principal with Deal Sikes & Associates.
“No broad brush can be applied to the Houston real estate market, although pockets of softness have developed,” Sikes said. “However, we anticipate moderate increases in values over the next year, for the most part.”
The single-family existing home market in Houston is a different story, as home prices have been rising and the residential market is exceptionally strong.
Sept. 26, 2016 Realty News Report Copyright 2016