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Healthy Economic Growth Will Support Gains in Houston Real Estate Valuations in 2019, Deal Sikes Reports

February 6, 2019

HOUSTON--(BUSINESS WIRE)--Feb 6, 2019--Houston’s real estate values will be trending upward generally in 2019 as the metropolitan area experiences moderate economic growth, according to Deal Sikes, a leading real estate valuation firm.

The Greater Houston Partnership forecasts the Houston metropolitan area will add 71,000 new jobs in 2019, a solid gain that will boost real estate markets overall, including both commercial and residential properties, said Mark O. Sikes, principal with Deal Sikes.

“The outlook for Houston real estate in the coming year is good. Although there will be exceptions, values of most property types will show modest growth in 2019,” Sikes said. “Construction is generally in-step with demand and there is no apparent oversupply of space in most commercial real estate sectors.”

Houston ranked number three in the nation in job growth last year with 108,300 new jobs, surpassed only by Dallas-Fort Worth with 116,400 jobs and New York with 115,500 jobs, according to the Bureau of Labor Statistics.

“Single-family home sales hit a record-high in 2018 and Houston’s multifamily market has staged a recovery from the softness reported two or three years ago,” Sikes said. “Occupancy rates are very high in the industrial and retail sectors and many of those properties will experience significant increases in property appreciation in 2019. Well-located sites and land parcels for development are in-demand and prices are expected to be very strong for sites with the exceptional qualities that suit new developments.”

The U.S. Energy Information Administration forecasts West Texas Intermediate oil will average $54 per barrel in 2019, a price that enables most domestic energy firms to operate profitably.

“With oil prices hovering in a healthy range, Houston’s office market should show more signs of recovery in the year ahead,” said Matthew C. Deal, principal with Deal Sikes. “The office market demonstrated renewed growth in the latter part of 2018. A number of significant office transactions have occurred recently in West Houston’s Energy Corridor and in other parts of the city. The office market appears to be regaining its footing and steady improvement is likely in 2019.”

Deal Sikes provides valuation and counseling services for real estate firms, governmental agencies, law firms, and investors across the region. www.DealSikes.com

View source version on businesswire.com:https://www.businesswire.com/news/home/20190206005517/en/

Mark Sikes or Matthew Deal 713-662-3500

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: PROFESSIONAL SERVICES CONSULTING FINANCE CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE RESIDENTIAL BUILDING & REAL ESTATE

SOURCE: Deal Sikes

Copyright Business Wire 2019.

PUB: 02/06/2019 11:32 AM/DISC: 02/06/2019 11:32 AM

http://www.businesswire.com/news/home/20190206005517/en

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