In the recent devastating effects of the deadly Hurricane Harvey, the real estate industry was one of the many economy-driven sectors that was badly hit. In the mainstream places like Houston, U.S. Virgin Islands, Puerto Rico, and others, the residents are still in the middle of recovering from the after-effects of the destructive effects of the same. It might take some time before the exact values of the real estate markets in Houston might be evaluated as there are several regions that have been catastrophically hit by the hurricane. The Government is moving towards with a $36.5 billion package for effective hurricane relief that would be given away to the badly hit regions of Houston.
In addition to Houston, the Hurricane Harvey has also hit the real estate industry on a national level. While the home sales of the existing real estate properties & homes has risen by around 0.7 percent, the new home real estate sales have also sprung by around 18.9 percent after the hurricane hit the region. Similarly, the pending home real estate sales have declined for the first time in several years which has trailed down below 1.5 percent. Sales activities of the real estate markets might have been stronger if the real estate havens like Houston and South Florida might not have been hit by the devastating Hurricane Harvey.
Real Estate Market Data Reveals Faster Economic Recovery in Houston
The HAR (Houston Association of Realtors) has generated the reports that single-family sales of real estate properties like homes & apartments in Houston has risen by around 4.2 percent from the time of last September. This had occurred after the steep drop in the same which was around 24 percent decline in the month of August. The real estate market in Houston is observing major gains in all of the property types including individual homes, apartments, plush bungalows and villas, and even properties. The property values in the real estate industry of Houston after the hitting of the Hurricane Harvey have been reported above $150,000 in terms of individual properties, around $500,000 to $700,000 with respect to individual homes, and others which have been viewed as the most sales volume after the natural calamity.
While the real estate inventory might be running low with respect to the consumer demands and property flooding, the real estate industry & respective markets in Houston are increasing steadily. The current rate of 4.2-months of the real estate supply has not been able to yet reach the needed inventory spike that the city had experienced right before the hitting of the Hurricane Harvey. The previous rate was around 4.4-months of real estate supply in correspondence to the consumer demands.
After the effects of the overwhelming natural disaster, there has been quite revival in the rental real estate markets in Houston. As such, the rental real estate markets have experienced its best-ever that has ever been observed in the city. The majority of displaced population because of the destructive Hurricane Harvey has resulted into the spike that has occurred in the demand for the real estate rental properties. The available demand for single-family real estate rental homes in Houston has increased by around 83.6 percent after the Hurricane Harvey. Similarly, the leases for condominiums and town-homes have also soared by around 92.2 percent. The average rent for condominiums and townhouses in the city of Houston has risen by around 5.4 percent to approximately $1,601. Similarly, the rent for single-family real estate rental properties has also increased by around 7.9 percent to over $1,886. These records as available as per the reports of the HAR (Houston Association of Realtors) after the occurrence of the natural calamity Hurricane Harvey.
The relief efforts with respect to the entire real estate markets in Houston are still going on after the natural disaster. The relief efforts are occurring both through the available government funding as well as by the community. The United States Department of Housing & Urban Development (HUD) has been allocation a total fund of around $57.8 million towards rebuilding the real estate markets in Houston after the Hurricane Harvey has left its impact on the given regions. In many other cases, homeowners are forced to sell their homes because they are unable to afford the repair costs from the floods while many lacked flood insurance or simply were denied claims. In situations such as those, it’s important to talk to a Houston real estate investor to get a fair cash offer.
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