I've been reading the Houston Business Journal and I'm reading articles that say we are headed for a real estate downfall, and some that say things are fine. Oil and gas are still down and we still have no idea when it might recover. Layoffs are still happening. People are spending less. The rental market in Houston is down, but my friends in the oil and gas maintenance field are as busy as ever. Any comments on where we might be headed? I'm specifically in Houston, but I welcome comments on a housing market as a whole also.
I don't think we're headed for another crash, but I wouldn't be surprised to see vales flat over the next few years. The real estate market has seen a huge run up since the last crash and with increasing interest rates and relatively flat wage growth, I just don't see another surge in values. Additionally, most of the builders are back in full swing, so we should see additional inventory entering the market, which should also contribute to flat prices.
I think the last crash was in part largely due to a lot of people getting financing who had no business owning a home or investment property. I feel there's a lot better regulations/underwriting now and while values may not grow as they did post crash, I don't see us in an overweight situation where we'll see a large correction. Smart deals will always be there!