Houston appears to be a paradox to the rest of the nation, hardly feeling the effects of recent events. After California's housing crisis, Houstonians were cautious, but not really. The thing was, it simply didn't hit close to home. Houses just weren't flipping at any rate out of the ordinary.
Houston is a city in a scared nation and was even recently hit by a horrendous hurricane, yet has hardly felt a nudge. "Houston remains the envy of real estate professionals around the country, who discussed their sales and pricing concerns with us at this month's National Association of REALTORS® conference in Orlando," said Michael Levitin, HAR chairman and principal of HTownRealty.com. But why?
Some would blame it on the lack of governmental interference that plagues much of the rest of the nation, which allows for an organic market and self-regulation of Houston's housing supply. Supply and demand are in balance in Houston, keeping home prices in check while builders are free to build exactly what is demanded. This self-regulation is precisely why Houston is recovering so quickly from Hurricane Ike. It is also why Houston is a great market for sellers and buyers. As a matter of fact, as long as local government continues to not interfere, Houston is virtually one of the safest places for real estate.
One can always also point out the age-old self-fulfilling prophecy argument. If buyers are afraid to buy because of a looming downturn, they won't buy, and in turn will create the very monster they feared! Most economists condemn those outside forces and believe that in a perfectly competitive market, if the price matches your willingness to buy, you will buy. Luckily in the case of Houston real estate, there isn't much to fear.
Real estate is a local science, and because of this, it's just unfair to compare the Houston market to a national trend. While it would be unwise to not research numbers at all before a real estate transaction, one will likely find there's just not much to worry about.