Houston is the fourth largest city in the U.S and the biggest city in Texas, with a population of 2.3 million people. Houston is one of the top markets in the nation for real estate investing with its diversified economy and a huge demand for housing. In 2019, the housing market Houston ended strong, and now that we’re in 2020, it continues to perform well.
Current Housing Market in Houston
COVID-19 has caused disruption in every sector, from real estate to farming and everything in between. Not only individual health has been compromised, but business health has been affected, as well. During the last week of March, the housing market also saw a small downturn compared to the rest of March’s performance.
However, there is good news for the housing market. Even though COVID-19 interrupted the regular stream of sales, Houston sales were over 11% ahead of March 2019 levels. That is excellent year-on-year growth. Given the fact that we’re dealing with sales figures during a pandemic, these numbers are very encouraging.
Why are we seeing such impressive growth during a pandemic? The federal government has lowered interest rates to the point where they are now at all-time lows. As a result, mortgage rates are also at an all-time low, and consumers are taking advantage of this fact.
So, what are the numbers we’re seeing? March numbers, according to the Update from Houston Association of Realtors, recorded 7,566 single-family homes sold in 2020 compared to 6,995 in 2019. In total, that is an 8.2% increase and nine consecutive positive months for house sales.
Stated by credit repair Houston analyst, the most purchased homes fall in the single-family category with a price range of $500,000 to $750,000 for March. Single-family homes in the range of $250,000 to $500,000 came next. Families that leased single-family homes also increased during March.
Median pricing for single-family homes rose 4.1% to $249,900, and average home prices rose 3.8% to $309,785. When it comes to home sales in March, these numbers represent the highest prices ever recorded.
Total sales for all property types equaled 8,965 for March, representing a 6.9% increase from March 2019. The total dollar amount for home sales rose 11% year-on-year to just over $2.6 billion.
Houston Housing Market Predictions for 2020
Prospective homebuyers face competition when looking to purchase low to mid-range houses for the rest of 2020. Homes priced between $150,000 to $200,000 are already in low supply, and we’re only a few months into the year.
On the upside, low-interest rates will likely remain in place for the foreseeable future. With the economic downturn due to COVID-19 and falling oil prices, Houston’s economy is facing a slowdown with the rest of the nation. However, falling interest rates and strong year-on-year growth are reasons to remain positive regarding the long-term outlook of moving to Houston.
How Does Your Credit Score Affect Loan Options and What Scores Do You Need?
When you’re looking to purchase a house, you’ll need to shop around for a mortgage. The most critical factor in getting the best mortgage rate possible from lenders is your credit score. As a rule, the higher your credit score, the better interest rates you’ll qualify for. According to David Lin, a former risk management director for Barclays and Citibank, if you have a credit score of 700 or above, you’ll be able to land a beneficial interest rate.
With scores above 720, you fall into the category of “excellent” rated credit, and you’ll have access to the best possible interest rates. A score that falls in the range of 690 to 719 is considered “good,” and at this range, you’ll still qualify for beneficial rates, though some lenders will be warier. Once you dip below 690, your options will become more limited, and if your score is around 640 or lower, a conventional mortgage might not be possible to obtain.
How to Improve Your Credit Score
If you have a credit score that needs improvement, there is good news! With time and dedication, all credit scores can be improved. So what can you do to see your score improve by ten, twenty, thirty, or one hundred points?
Here are five ways to improve your credit score:
Whether you have auto loans, credit card payments, or school bills, pay each installment on time. Lapsing at all will significantly damage your credit score. If you’ve already lapsed on one or more bills, get back on track as soon as possible. Paying your loans on time is the single most significant thing you can do to improve your credit score.
Cap Your Spending
Set a spending limit of no more than 30% of your total credit limit. For example, if you have a credit limit of $3,000 combined from your credit cards, plan to put no more than $900 total on your credit cards.
Pay Off Balances
If you have cards that have high balances, pay them down or transfer your balance to free up credit. Paying off balances will improve your credit score significantly.
Find a Mortgage within 30 Days
When you apply for mortgages, lending companies will run your credit score. Each time this happens, your score will dip slightly. Finding your mortgage within thirty days will ensure that your interest rate isn’t impacted by credit checks.
Sometimes the best thing you can do is work with a credit repair company to help improve your score. Companies can help you utilize strategies that are ideal for your specific situation.
Buy in Houston
Houston is one of the top markets for real estate. Acquiring a home in this area has lots of advantages, such as the low-interest rates for mortgages and a diverse economy in the city. Should you want to buy a house in Houston, achieving a high credit score is essential to get the lowest interest rate. We hope this article has given you an idea for improving your credit score to have a higher chance of getting the house that you want.