| Houston may be a "wait and see" market with respect to price growth. But don't discount the opportunity to rehab existing homes for a profit or even the more aggressive approach with a full tear down.
Like many other markets, the current credit crunch and the rising inventory levels will impact the market dynamics and a way that is not easily predicted. Currently, absorption is declining, new listings are increasing and the gap between supply and demand is widening further.
The Houston market will continue to be a sound option for investors looking to secure cash flow positive properties, but don't make your decisions based on future appreciation. The nation leading job growth will continue to bolster the rental market and will bode well for investors that want to provide rental housing options for the new residents. Keep a close watch on the inventory levels in the 2nd quarter.
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