I chose to become an educator as my first career, however, I have dabbled with real estate a few times in my life. As you all know by now, I LOVE, LOVE, LOVE anything about homes…home design, home decorating, home remodels, anything that makes a house a home is one of my passions! So, it should not surprise anyone that I have taken the real estate courses…however, I have not completed any exams. I took them while back in Iowa, working on the house flip and thinking of leaving education. Then, I decided to move back to Houston, and I got a job back in education…so I just went with it. I did meet with a real estate company and started the Texas courses, but as a campus administrator, I had limited time and I knew I couldn’t give it my all.
But, that doesn’t stop my passion, for sure! I continue to follow market trends and anything that includes houses, housing, design, etc. So, today I want to share my own thoughts on this crazy real estate market!
I built my first home in 2001, in Houston, Texas. It was a lovely, 2200 sq. ft. home in a reputable neighborhood, zoned to great schools, and I got a fantastic price! At that time, the average price for a home like mine was around $120,000…which looking back, seems like a STEAL! Houston was one of those cities that the housing prices really did stay pretty stable and I definitely benefited from that! I ended up selling years later, and although the market was beginning to adjust here, I still would say homes were very reasonable and I was able to find a buyer quickly.
When I returned to Houston two years later (2015), I noticed prices starting to rise. Nothing too, too significant, but enough where as a single income, I couldn’t buy in the more trendy areas of the city, and chose to wait and lease in the suburbs. During my last 6 years of leasing, and finally deciding to make the commitment to purchase a home, I certainly have had a few surprises along the way!
Here is what I now know:
- I began this house journey in January of 2021, and just had the home appraised so I can begin to process the closing, and I am already in appreciation of about $20,000! And that is above the cost with my pricey upgrades!
- My friend just sold her house, on the market for one weekend, for well above what she paid to have it built…like I am guessing over $100,000 more!
- My real estate agent is having a very difficult time finding homes for her clients, as most homes are getting offers above asking, before clients are even seeing them!
- Listening to my podcasts last week, the low interest rates are driving these home prices up everywhere across the US, and it may not change until 2022…or beyond!
- The cost for materials has increased so much recently…lumber, piping, etc…that it has become difficult to build at prices that I locked in at, just 6 months ago!
It amazes me that housing prices are so high…thinking about many of the homes I looked at prior to deciding to build would have needed a pretty major overhaul….and they were higher than the cost of building. As I mentioned, I watch the market often and it really is everywhere!
So, I wonder….how does the average household afford home ownership? A new teacher in many district around my side of Houston have a beginning salary around $60,000…and that is not enough to purchase the average home in the area. (However, rent is not much better right now!) I also wonder…what happens if the market shifts….will all of us home owners be at a loss? And, if rates do go back to a higher rate, will a yearly salary just over $100,000 allow for home ownership?
All things home truly will continue to be my passion….and I hope to continue to dabble in many areas of real estate in the near future. I am anxious, but also completely excited to see what happens with the housing trends in the future! And, I certainly hope that one day, I have the ability to answer some of my wonderings, especially when it comes to how I can help others (what I do believe I was put on this earth to do) find affordable housing that becomes a safe and secure place for those who are the average, hardworking families around the Houston area! Stay tuned, my friends!