Harvey’s Impact on Texas Home Prices Remains Minimal

Harvey’s Impact on Texas Home Prices Remains Minimal

Hurricane Harvey’s impact on Texas home prices proved to be minimal, as property values only fell 0.05% in September compared to August, according to Black Knight.

On the other hand, residential real estate prices nationwide rose 0.16% to $282,000 in the same period. However, it continued a slowdown in price appreciation for the sixth month in a row after dropping 0.24% month over month.

Median Prices

Texas home prices fell in September mainly because of a 0.23% drop in Houston, where Harvey’s damages manifested the most. Black Knight said that the median price in Texas amounted to $241,000 from the peak price of $242,000 in August. If you are looking to buy homes, you should consider Rockport listings that may have been affected by the slight price decrease.

Despite the price depreciation, property values in the city rose 3.23% since January 2017 and 2.69% since August 2016. Aside from Houston, Realtor.com also said that the markets in Austin, Dallas-Fort Worth, San Antonio and Houston recorded the highest price appreciation for the last 10 years.

Sky-High Values

Home buyers in Austin should be ready to pay for home prices that are nearly 63% higher than they were in 2006, as the market recorded the biggest increase nationwide, according to Realtor.com. Dallas-Fort Worth also posted a significant price appreciation at 51.6%. A shortage of homes in these markets primarily drove the huge growth.

Those who plan to sell homes should reach a decision soon, as the rapid pace of appreciation will not stay forever, according to Realtor.com chief economist Danielle Hale. Since more buyers will be unable to afford sky-high prices, demand for properties will eventually slow down in the future.

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The small decrease in Texas home prices in September indicated that natural disasters do not always result in drastic changes in the real estate market.