Houston housing market: Is it a good time to buy or sell?

What does Houston's housing market look like right now?

The Fed is expected to lower interest rates when it meets later this week, and that may trickle down to mortgage rates that have scared some would-be buyers away. FOX 26 business reporter Tom Zizka says even in a relatively healthy market like Houston, there are not enough home buyers for the homes that are for sale right now.

HOUSTON - Mortgage rates are the lowest they've been in about a year, but they remain pricey compared to the lows of a few years ago. The high cost of borrowing, and inflated home prices are keeping a lot of would-be buyers away.

What does the Houston market look like?

In Houston, the Houston Association of Realtors says August sales were up almost 12%. Despite some markets seeing a decline in home prices, as buyer interest dries up, HAR says prices are flat, while there are still a lot of homes for sale.

By the numbers:

 In August, the average home price was $422,000.

There are about 40,000 homes for sale in the Houston metro, which is a decade-high six-month inventory.

On average, it takes 52 days to find a buyer and sign the papers, almost a week longer than a year ago.

Big picture view:

While Houston is not a buyer's market, sellers should not expect the bidding-wars of a few years ago, and some deals may need to be sweetened to get them done. That could include lower prices, money to buy-down the buyer's mortgage rate, or seller-paid closing costs.

Despite the high inventory of homes for sale, Houston is like many markets, in that there still not enough so-called 'starter homes' for sale. They're too expensive. Research by Realtor.com finds seven out of 10 would-be home buyers who earn the median household income are still priced out of the market.

Experts believe mortgage rates could drop to the 5% range by late next year.

What they're saying:

"We're seeing a more balanced market right now. Houston is a great place, right now, for buyers and sellers," says incoming HAR Chair Theresa Hill. "Now, buyers have a little more negotiating power, sellers are still getting those solid offers if they price right."