Where does the Houston area real estate market currently stand and what does the future hold? Let's take a look at what PMI and its' Market Risk Index says at this time. All figures quoted are for the Houston-Baytown-Sugarland MSA.
The PMI Market Risk Index for our area is <1>That means that there is a less than 1% chance that home prices will be lower two years from now. I don't think you can beat that score. A great indication that now is the time to buy.
Our areas Volatility rating is 1.78. This means there is a very low risk of future price declines based on price appreciation over the last five years. Another rating that shows how good this market should be. It is still a great time to buy real estate.
The Price Appreciation number at the end of the first quarter of '08 was 4.38. A high number in this area means that prices are accelerating to rapidly and therefore the higher the risk of future price declines. This quarters number compares to a 6.43 at the end of '07. These two numbers taken together mean that our market was never really out of whack and have stabilized even more. Our area numbers continue to look good.
Our Affordability Index stood at 133.62 at the end of the first quarter '08. This means that current home prices measured against a 1995 baseline are more affordable when utilizing per capita area income. Our end of the year index was 133.96 which indicates a very minor increase in home prices or drop in per capita income. This is just another indicator that now is a great time to buy.
In my humble opinion if you take all of these numbers together the current situation for the Houston-Baytown-Sugarland area housing market is good. The numbers indicate no surprises on the horizon. I think we are safe in assuming that we are in a stable and healthy real estate market. I have included a link below that will take you to the entire report. PS: If a successful women logo shows up in this blog rather than a buy now logo it is the computers fault!
If you have any questions about our areas market please drop me a comment or email.
Thanks and I hope you have a great day.
Ron
