If you’re looking for the calm after the storm, you probably won’t find it just yet. Post hurricane, the real estate market in Houston is changing. Depending on whether you are an owner, property manager or buyer, it could be positive or negative. Housing prices have increased along with rent in areas that didn’t flood.
Investors are swooping in to buy flooded properties at a highly discounted rate in order to flip for a profit. Houston homeowners sticking it out, are months into repairs or still waiting for funds or skilled contractors. Rightfully, many homeowners in Houston are worried about a property value decrease over time.
So, what’s the answer? How will Harvey affect the market and your condominium property?
The Affect of Harvey on Real Estate in Houston
- Between $81 and $108 billion in property damage and economic loss.
- 30,0000 to 40,000 homes destroyed
- 105,000 apartments damaged
- 196,000 single family homes damaged
Despite the severe loss, there are still millions of residents in the Space City. People are proud to call Houston home, who are happy to be world series champions, who still have jobs, family nearby and kids in school. There is still a market of buyers in Houston and the city will rebuild.
Condo Properties are Attractive
Many long-time home owners have been forced to rent or buy condominiums post hurricane. For those lucky enough to own insured homes, it can take years to gut and rebuild. Families displaced by Harvey are turning to condominiums as an alternative. Floor plans are more open in a condo, mimicking a single-family home
Retired couples who lost everything, may decide to downsize a little sooner than originally planned. A condo is attractive to empty nesters who don’t want to deal with lawn care and seek additional amenities.
Apartment dwellers may decide it’s time to buy and opt for a condo under the circumstances. With non-flooded home prices expected to rise, a condo can be a better decision financially.
So yes, post hurricane Houston market changes indicate the value of your condo, if it was not in a flooded area, just went up.
Should you Sell Post-Harvey?
If you were considering leaving the area, it might not be such a bad idea. If you were wanting to sell, then buy again in the Houston market, it could prove difficult.
Have a second home? Relocate to help and rent out your condo. Be sure to check your CRRs before making any decision and talk to your management company. They can provide guidance on rental rates and general feasibility.
Selling in the Flood Zone?
If your condo property was flooded, there will be challenges ahead. Even if your particular unit did not sustain damage, the value could still be affected. Were units below flooded? Is there structural or foundation problems that could harm the upper floor condos in the future? This is a time when you will want to maintain close communications with your property management company and your association board. Decisions made now will affect the future value of your condo.
Need information on what you should do? Start with your management association. Don’t have one? Now may be the time to consider a change. Contact RISE (713) 936-9200 or [email protected]. RISE sets the standard when it comes to Houston high rise association management.
