Unlike typical buyers, Houston luxury home buyers are not motivated by low mortgage interest rates. They also feel less pressured about home inventory, as the luxury real estate market has an ample supply of homes on the market. With no sense of urgency to goad them on, Houston luxury home buyers are exercising caution due to weakness in the energy sector, and doubts about future fiscal policy in an election year.
Yet luxury home buyers are seeing positive signals in the economy. The stock market had a strong summer, with the DJIA returning to lofty territory, climbing above 18,000. Meanwhile, energy prices have gradually stabilized, and concerns about China’s slowing economy are easing.
According to real estate analysts, luxury home buyers are keenly influenced by the direction of the stock market, as this represents a common source of down payment and home purchase funds. Therefore, issues that affect stock market performance – everything from looming elections to economic benchmarks – can make luxury home buyers feel more optimistic or discouraged, depending on the direction of the news.
Recently, more good news was added to the mix. During July, national employment figures posted a gain of 255,000, beating the month’s forecast of 180,000. Wages and hours worked per week both saw some improvement over the prior month.
Employment strength indicates a healthy business climate, which in turn leads to profits and stock market gains.
Here in Houston, our employment figures are improving after a bumpy start in the first quarter. While our local economy feels the brunt when there is softening in the energy sector, our diversified industries are adding jobs. We detailed some of this in our prior blog post.
Houston luxury home buyers who plan to hold property long-term, have some excellent opportunities today. Luxury home sellers are negotiating, and there are beautiful homes for sale in some of West Houston’s most desirable neighborhoods.
Contact us today for your personal luxury real estate consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079