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Houston Foreclosed Homes Inventory Low, But Expected to Increase in 2008
April 29th, 2008 by 
Joseph Smith
The market for Houston Foreclosed Homes appears to not be rising as rapidly as the rest of the country, but it is still a market worth watching and investing in.
Texas foreclosed homes, once one of the biggest inventories of foreclosed homes for sale in the country, have dropped, are currently 16% lower in inventory than they were one year ago in March of 2007, but this might not remain the case for long, as evidenced by the fact that the amount of new foreclosures rose 5% from February to March this year.
Houston Foreclosed Homes have remained remarkably low, especially compared with other Texas cities such as Dallas, but there are signs that this simply can’t continue. One of the biggest is that over the last seven months, home sales in the city have diminished steadily by roughly 16%. Looking even closer, the statistics show that luxury home sales have diminished by 17% from February of 2008 to March of 2008, indicating that it is harder to sell a home in the city, especially a high priced one.
With the upcoming recession, things could get complicated. Many Houston homes are under mortgage bought during the real estate boom that peaked roughly 3 or 4 years ago. Now that home values have fallen drastically, many of these could end up as Houston foreclosure listings, as homeowners find it increasingly difficult to keep up with their mortgage payments and are at the same time unable to sell their home for anywhere near what they paid for it in a market with low demand.
Houston Foreclosed Homes may be low now, but they should pick up as the year progresses. They can be good investments however, as the fact the market has held out this long is a testament to the local economy’s strength.
