When the price of oil dropped nearly 40% from $100 a barrel to approximately $60 many believed the thriving Houston real estate market would follow suit. They were wrong.
Despite the drop in oil prices, home prices have increased. Homes in the Bayou City have continued to appreciate during the six months following the plummeting oil prices. Prices increased 7.7 percent year over year in May, according to Zillow Inc.’s monthly housing report. While the Houston Association of Realtors’ multiple listing service information shows the median home price jumped 10.5 percent year over year to $223,000.
I believe prices will continue to increase. One factor contributing to the increase is the Bayou City’s diversified economy which buffered the real estate market from the oil crash. Furthermore, Forbes recently ranked Houston’s labor market No. 2 in the nation. We have consistently been at the top of the list of the fastest growing cities in the nation. The influx of professional transplants moving to Houston to take advantage of job opportunities combined with low inventory can only lead to one thing: higher home prices.
