2018 has flown by, and now Thanksgiving is looming around the corner, signaling the start of the holiday season. As we prepare for the holidays, most people do not focus on buying or selling a home, but the year is not over yet. Despite the recent “cooling off” of home sales in September, according to the Houston Association of Realtors, we could see a surge again in the final months of 2018.
Good news is on the horizon in the Energy Corridor as news emerges that BP, Transocean, and Schumberger just signed leases to occupy more office space in the Energy Corridor. All signs are there that oil companies are gearing up to increase productivity in 2019, as predicted earlier this year.
We have already seen more relocation activity in the rental market in the last month, although it is still just trickling in right now and there is an over abundance of inventory with remodeled flood homes continuing to come on the market. The increase in inventory and new standard set by remodeled homes has raised the expectation of potential renters and buyers, and in order to compete in this environment, landlords and Sellers must make sure that their homes are updated and pristine in order to compete. Don’t have the money to update? A fresh coat of paint and deep cleaning can do wonders for a home’s presentation.
I cannot guarantee that good things are coming for our real estate market, but I do see light at the end a long tunnel after a 3 year downturn in home sales in the Energy Corridor. Although oil prices took a dip today, we have remained over $60 per barrel since the beginning of 2018, which is higher than the previous 2 years. Our real estate market typically follows oil prices by 6-12 months, and we are nearing that window now.
With oil prices stabilized and the midterm elections over, I hope to see our real estate market revitalize as we head into 2019.