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Seasonal Summer Home Shopping, First-Time Home Buyers Buoy Houston Real Estate Market in August

Single-family home median price rises for the fourth straight month

HOUSTON — (September 15, 2009) — The Houston real estate market showed continued signs in August of attempting to break free from the downward trend in property sales that first began in September 2007.

Boosted by seasonal summer home buying, including an influx of first-time home buyers taking advantage of the federal government’s soon-to-expire $8,000 tax credit, the August volume of single-family home sales across the greater Houston area slid 10.1 percent compared to August 2008, according to new monthly data compiled by the Houston Association of REALTORS® (HAR). That follows July’s 6.1 percent (corrected) drop, which was the smallest decline since the market downturn began in September 2007. Total property sales tumbled 11.0 percent in August on a year-over-year basis following last month’s 5.1 percent drop, which was the smallest rate of decline since November 2007 when it was off by 10.2 percent.

At $160,880, the August single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 0.6 percent from one year earlier to the third highest level of 2009. That’s the fourth straight monthly increase in the median price. The average price of a single-family home in Houston dipped 4.2 percent last month to $213,396 compared to August 2008. That represents the third highest average price of the year.

Foreclosure property sales slowed again in August, making up 16.7 percent of all single-family home sales in the Houston area compared to 18.3 percent in August 2008 and the 12-month peak of 34.0 percent in January of this year. The median price of August foreclosure sales reported in the Multiple Listing Service (MLS) declined 7.5 percent from $93,000 to $86,000 on a year-over-year basis.

Sales of all property types in Houston for August totaled 5,904, off 11.0 percent compared to August 2008. Total dollar volume for properties sold during the month was $1.0 billion versus $1.2 billion one year earlier, representing a decline of 13.9 percent.

“We knew going in that recovery would be a gradual process, however overall indications continue to show the Houston real estate market on strong footing, particularly when it comes to price appreciation,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring.  “Our REALTOR® members report that many first-time homebuyers have been taking advantage of the $8,000 tax credit, but time is running out with that incentive set to expire on November 30.”

August Monthly Market Comparison
The month of August brought Houston’s overall housing mostly negative results when all listing categories are compared to August of 2008. Total property sales, total dollar volume and average single-family home sales prices were down on a year-over-year basis while median single-family home sales prices rose slightly.

The number of available properties, or active listings, at the end of August fell 12.9 percent from August 2008 to 46,023. That is 575 less active listings than one month earlier, in July 2009, and considered an indicator of balanced housing inventory levels.

Month-end pending sales—those listings expected to close within the next 30 days—totaled 3,901, which was 9.3 percent lower than last year. While that most likely means sales will be down again in September, the effects of Hurricane Ike on the local real estate business one year ago make it difficult to forecast. The month’s inventory of single-family homes for August came in at 6.5 months, down from 6.7 months one year earlier, and remains much healthier than the national month’s inventory of single-family homes of 9.4 months, reported by the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $160,880, the median sales price for single-family homes reached the third highest level of 2009, up 0.6 percent from August 2008, when it was $159,900. August also marked the fourth consecutive monthly increase in the median price. The national single-family median price reported by NAR is $178,300, illustrating the continued higher value and lower cost of living that the Houston market offers consumers. The average price of single-family homes in August was $213,396, slipping 4.2 percent from one year earlier.

August sales of single-family homes in Houston totaled 5,058, down 10.1 percent from August 2008, and accounted for the 24th consecutive monthly drop. However, on a month-over-month basis, that volume is the third highest of 2009, and the 10.1 percent decline is the second smallest fluctuation of the year following July’s 6.1 percent (corrected) slide.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In August 2009, existing single-family home sales totaled 4,328, an 8.3 percent decrease from August 2008. At $155,000, the median sales price for existing homes in the Houston area rose 4.0 percent compared to last year. The average sales price of $202,477 for the month dipped 1.6 percent from its August 2008 level.

Townhouse/Condo Update

The number of townhouses and condominiums sold in August fell compared to one year earlier. In the greater Houston area, 452 units were sold last month versus 555 properties in August 2008, translating to an 18.6 percent decrease in year-over-year sales. However, that still represents the third highest month-over-month sales volume of 2009.

The median price of a townhouse/condominium fell 10.3 percent year-over-year to $122,000. The average price dropped 9.7 percent to $153,184 from August 2008 to August 2009.

Lease Property Update

Demand for single-family home rentals rose slightly in August, up 1.2 percent compared to a year earlier. Year-over-year townhouse/condominium rentals climbed 5.9 percent.

Houston Real Estate Milestones in August

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July Marks Houston’s Highest Home Sales Volume in a Year

Month also brings second highest median price of a single-family home; foreclosures recede

HOUSTON — (August 18, 2009) — Seasonal summer home buying and continued activity among first-time homebuyers translated to a significant improvement in single-family home sales across greater Houston in July, with the highest volume since July 2008 and the second highest median price in history. This comes despite year-over-year declines in overall property sales of 5.1 percent and 4.4 percent for single-family homes, according to new monthly data compiled by the Houston Association of REALTORS® (HAR). However, those declines are the smallest recorded since the economic downturn began in the fall of 2007.

At $163,000, the July single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 1.5 percent from one year earlier to the second highest price ever. The highest median of all time, $164,500, was reached in June 2009. The average price of a single-family home in Houston dipped 1.8 percent last month to $220,030 compared to July 2008. That represents the second highest average price since August 2008.

Foreclosure property sales continued to slow in July, making up 16.6 percent of all single-family home sales in the Houston area compared to 18.0 percent in July 2008 and 34.0 percent in January of this year. The median price of July foreclosure sales reported in the Multiple Listing Service (MLS) declined 2.8 percent from $92,664 to $90,000 on a year-over-year basis.

Sales of all property types in Houston for July totaled 6,744, off 5.1 percent compared to July 2008. Total dollar volume for properties sold during the month was $1.4 billion versus $1.5 billion one year earlier, representing a decline of 6.2 percent—the smallest since November 2007.

“Strong pricing performance, an easing decline in sales volume and the slowdown of foreclosure sales make for very positive indicators about the state of Houston’s real estate market,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “We look forward to further improvement as the tax credit incentive, historically low interest rates and an attractive variety of housing inventory continue to draw buyers to the marketplace.”

July Monthly Market Comparison
The month of July brought Houston’s overall housing market mixed results when all listing categories are compared to July of 2008. Total property sales, total dollar volume and average single-family home sales prices were down on a year-over-year basis while median single-family home sales prices rose to the second highest level ever.

The number of available properties, or active listings, at the end of July fell 13.4 percent from July 2008 to 46,598. That is 609 more active listings than one month earlier, in June 2009, and continues to reflect balanced housing inventory levels.

Month-end pending sales—those listings expected to close within the next 30 days—totaled 3,909, which was 17.8 percent lower than last year and portends another decline in sales when the August numbers are tallied. The month’s inventory of single-family homes for July came in at 6.5 months, down from 6.7 months one year earlier. The national month’s inventory of single-family homes fell slightly to 9.4 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $163,000, the median sales price for single-family homes reached the second highest level ever, up 1.5 percent from July 2008, when it was $160,550. The national single-family median price reported by NAR is $181,600, illustrating the continued higher value and lower cost of living that the Houston market offers consumers. The average price of single-family homes in July was $220,030, slipping 1.8 percent from one year earlier.

July sales of single-family homes in Houston totaled 5,788, down 4.4 percent from July 2008, and accounted for the 23rd consecutive monthly drop. However, that volume is the highest since July 2008, and the 4.4 percent decline is the smallest fluctuation since the market downturn started in late 2007. Year-over-year sales of single-family homes priced between $150,000 and $250,000—the second busiest segment of the housing market—rose 1.2 percent in July.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In July 2009, existing single-family home sales totaled 4,928, a 2.5 percent decrease from July 2008. At $155,000, the median sales price for existing homes in the Houston area rose 3.3 percent compared to last year. The average sales price of $206,401 for the month was flat compared to one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in July fell compared to one year earlier. In the greater Houston area, 550 units were sold last month versus 586 properties in July 2008, translating to a 6.1 percent decrease in year-over-year sales. However, that still represents the highest sales volume since August 2008.

The median price of a townhouse/condominium dipped 1.5 percent year-over-year to $133,000. The average price rose 2.6 percent to $169,838 from July 2008 to July 2009.

Lease Property Update

Demand for single-family home rentals rose slightly in July, up 6.7 percent compared to a year earlier. Year-over-year townhouse/condominium rentals were unchanged.

Houston Real Estate Milestones in July

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Houston Home Sales Show Continued Strengthening in June

Median price of a single-family home reaches all-time high

HOUSTON — (July 21, 2009) — Sales of single-family homes for the greater Houston area continued to improve in June, with the highest volume recorded since August 2008 and the highest median price in history. This comes despite a year-over-year decline in overall property sales of 15.0 percent and 13.5 percent for single-family homes, according to new monthly data compiled by the Houston Association of REALTORS® (HAR).

At $164,500, the June single-family home median price – the figure at which half of the homes sold for more and half sold for less – rose 2.8 percent from one year earlier to reach an all-time high. The average price of a single-family home in Houston dipped 2.4 percent last month to $221,783 compared to June 2008. That represents the highest average price since August 2008.

Foreclosure property sales showed further decline, as they have each month this year, making up 16.8 percent of all single-family home sales in the Houston area in June. That compares to 34.0 percent in January, 28.0 percent in February, 24.5 percent in March, 23.6 percent in April and 19.9 percent in May. The median price of June foreclosure sales reported in the Multiple Listing Service (MLS) fell 3.0 percent from $90,000 to $87,000 on a year-over-year basis.

Sales of all property types in Houston for June totaled 6,306, off 15.0 percent compared to June 2008. Total dollar volume for properties sold during the month was $1.3 billion versus $1.6 billion one year earlier, an 18.3 percent decline.

Demand for rental properties eased slightly in June, possibly reflecting a growing readiness among renters to purchase a home. Leases of single-family homes edged up 3.2 percent and leases of townhouses and condominiums rose 8.7 percent on a year-over-year basis.

“The Houston real estate market has shown incremental improvement each month this year, both in terms of sales volume and the pricing stability that others around the country envy,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Seasonal spring home buying, particularly among first-time buyers who are taking advantage of the government’s $8,000 tax credit and historically low interest rates, accounts for much of the June sales activity and, naturally, we hope that continues through the summer months and beyond.”

June Monthly Market Comparison
The month of June brought Houston’s overall housing market mixed results when all listing categories are compared to June of 2008. Total property sales, total dollar volume and average single-family home sales prices fell on a year-over-year basis while median single-family home sales prices rose to an historic high.

The number of available properties, or active listings, at the end of June fell 14.5 percent from June 2008 to 45,989. That is 707 more active listings than one month earlier, in May 2009, and continues to reflect balanced housing inventory levels.

Month-end pending sales—those listings expected to close within the next 30 days—totaled 3,896, which was 12.6 percent lower than last year and portends another decline in sales when July’s numbers are tallied. The month’s inventory of single-family homes for June came in at 6.4 months, down from 6.7 months one year earlier. The national month’s inventory of single-family homes fell slightly to 9.6 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $164,500, the median sales price for single-family homes reached its highest level ever, rising 2.8 percent from June 2008, when it was $160,050. The national single-family median price reported by NAR is $173,000, illustrating the continued higher value and lower cost of living that the Houston market offers consumers. The average price of single-family homes in June was $221,783, down 2.4 percent from one year earlier.

June sales of single-family homes in Houston totaled 5,422, down 13.5 percent from June 2008, and accounted for the 22nd consecutive monthly drop. However, that volume is the highest since August 2008. Year-over-year sales of single-family homes priced at $80,000 and below declined 7.2 percent in June, reflecting tapering transactions involving distressed properties.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In June 2009, existing single-family home sales totaled 4,685, a 10.4 percent decrease from June 2008. At $156,000, the median sales price for existing homes in the Houston area rose 2.3 percent compared to last year. The average sales price of $208,036 for the month was down 1.1 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in June fell compared to one year earlier. In the greater Houston area, 502 units were sold last month versus 653 properties in June 2008, translating to a 23.1 percent decrease in year-over-year sales. However, that still represents the highest sales volume since August 2008.

The median price of a townhouse/condominium rose to the second highest level ever— $144,500, up 6.3 percent from one year earlier. The average price declined 4.0 percent to $171,007 from June 2008 to June 2009.

Lease Property Update

Demand for single-family rentals eased slightly in June. Single-family home rentals rose 3.2 percent last month compared to a year earlier. Year-over-year townhouse/condominium rentals rose 8.7 percent.

Houston Real Estate Milestones in June

May Brings Further Price Appreciation to Houston’s Housing Market

Single-family home sales reach the highest volume of 2009

HOUSTON — (June 16, 2009) — Sales of single-family homes for the greater Houston area achieved the highest volume of 2009 in May, and average and median home prices climbed to the highest levels since August 2008, showing signs of a real estate market that is benefiting from seasonal spring home buying. However, compared to one year earlier, overall May property sales were down 23.3 percent and sales of single-family homes dropped 21.2 percent, according to new monthly data compiled by the Houston Association of REALTORS® (HAR).

At $157,450, the May single-family home median price – the figure at which half of the homes sold for more and half sold for less – rose 1.6 percent versus one year earlier. The average price of a single-family home in Houston edged up 0.3 percent last month to $213,474 compared to May 2008.

Sales of foreclosure properties continued to shrink in May. Those properties, which typically sell below market prices, made up 19.9 percent of all single-family home sales in the Houston area. That compares to 34.0 percent in January, 28.0 percent in February, 24.5 percent in March and 23.6 percent in April. The median price of May foreclosure sales reported in the Multiple Listing Service (MLS) tumbled 5.3 percent from $89,900 to $85,108 on a year-over-year basis.

Sales of all property types in Houston for May totaled 5,539, off 23.3 percent compared to May 2008. Total dollar volume for properties sold during the month was $1.1 billion versus $1.5 billion one year earlier, a 23.8 percent decline.

Demand for rental properties eased slightly in May, with leases of single-family homes up 0.1 percent and leases of townhouses and condominiums up 6.2 percent on a year-over-year basis. This may be an indication that consumers are growing more inclined to purchase rather than lease homes, especially as interest rates—still at historically low levels—begin to rise.

“The more I speak with real estate associations around the country, the more I appreciate the strength with which the Houston market has weathered the economic downturn,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Our current housing climate has been performing at about 2004 levels while other regions of the U.S. are suffering what Houston endured back in the 1980s,” she added. “Many Houston Realtors are reporting increased activity this spring, and we hope that translates to measurable improvement in overall market performance.”

May Monthly Market Comparison
The month of May brought Houston’s overall housing market mixed results when all listing categories are compared to May of 2008. Total property sales and total dollar volume fell on a year-over-year basis while average and median single-family home sales prices rose.

The number of available properties, or active listings, at the end of May fell 15.1 percent from May 2008 to 45,282. That is just 13 more active listings than one month earlier, in April 2009, and continues to reflect balanced levels of housing inventory.

Month-end pending sales—those listings expected to close within the next 30 days—totaled 3,637, which was 24.7 percent lower than last year and suggests another decline in sales when the June numbers are tallied. The month’s inventory of single-family homes for May came in at 6.2 months, down 5.4 percent from one year earlier. The national month’s inventory of single-family homes rose slightly to 10.2 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $213,474, the average sales price for single-family homes rose 0.3 percent from May 2008, when it was $212,872. The figure is at its highest level since last August. The median price of single-family homes in April was $157,450, up 1.6 percent from one year earlier. The national single-family median price reported by NAR is $169,800, illustrating the continued higher value and lower cost of living that the Houston market offers consumers.

May sales of single-family homes in Houston totaled 4,797, down 21.2 percent from May 2008, and accounted for the 21st consecutive monthly drop. However, that volume is the highest so far for 2009. Year-over-year sales of single-family homes priced at $80,000 and below declined 12.3 percent in May, reflecting tapering foreclosure-related transactions.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In May 2009, existing single-family home sales totaled 4,019, a 21.4 percent decrease from May 2008. At $196,866, the average sales price for existing homes in the Houston area rose 0.5 percent compared to last year. The median sales price of $147,400 for the month was up 1.6 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in May fell compared to one year earlier. In the greater Houston area, 399 units were sold last month versus 618 properties in May 2008, translating to a 35.4 percent decrease in year-over-year sales. However, that still represents the highest sales volume for all of 2009.

The average price of a townhouse/condominium fell to $156,907, down 11.1 percent from one year earlier. The median price declined 18.7 percent to $125,950 from May 2008 to May 2009.

Lease Property Update

Demand for single-family rentals eased in May, and may suggest that conditions—particularly for first-time homebuyers—have improved to the point where consumers are ready to purchase. Single-family home rentals rose 0.1 percent last month compared to a year earlier. Year-over-year townhouse/condominium rentals rose 6.2 percent.

Houston Real Estate Milestones in May

Houston Home Prices Reach a Seven-Month High in April

Single-family home sales volume is second highest of 2009

HOUSTON — (May 19, 2009) — Average and median home prices for the greater Houston area reached the highest levels since September 2008 in April, and sales volume was the second highest for 2009, reflecting a continuation of the traditional spring uptick in real estate activity. Compared to one year earlier, however, overall April property sales fell 24.3 percent and sales of single-family homes dropped 22.5 percent, according to new monthly data prepared by the Houston Association of REALTORS® (HAR).

At $149,050, the April single-family home median price – the figure at which half of the homes sold for more and half sold for less – held steady versus one year earlier. When foreclosures are removed from the analysis, the median price of traditional single-family homes rose slightly to $170,000. The average price of a single-family home in Houston dropped 5.8 percent last month to $194,222 compared to April 2008.

Sales of foreclosure properties, which typically sell below market prices, continue to taper. In April 2009, foreclosures made up 23.6 percent of all single-family home sales in the Houston area compared to 34.0 percent in January, 28.0 percent in February and 24.5 percent in March. The median price of April foreclosure sales reported in the Multiple Listing Service (MLS) tumbled 8.6 percent from $91,000 to $83,153 on a year-over-year basis.

Sales of all property types in Houston for April totaled 4,898, off 24.3 percent compared to April 2008. Total dollar volume for properties sold during the month was $920 million versus $1.3 billion one year earlier, a 28.9 percent decline.

Demand for rental properties rose again in April, with leases of single-family homes up 8.0 percent on a year-over-year basis and leases of townhouses and condominiums up 12.2 percent.

“The housing industry recovery will be a gradual process, but Houston continues to demonstrate the strength of its home values compared to other communities around the country where pricing ballooned and then bottomed out,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Many HAR members are reporting growing activity among first-time home buyers who are taking advantage of historically low interest rates and the federal government’s $8,000 tax credit. The real estate business typically picks up during the spring and summer months,” she added.

April Monthly Market Comparison
The month of April brought Houston’s overall housing market negative results when all listing categories are compared to April of 2008. Total property sales and total dollar volume fell on a year-over-year basis, as did average and median single-family home sales prices.

The number of available properties, or active listings, at the end of April fell 14.7 percent from April 2008 to 45,269. That is 499 fewer active listings than March 2009 and signals that inventory levels remain balanced.

Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,685, which was 25.3 percent lower than last year and suggests the likelihood of a decline in sales when the May numbers are tallied. The month’s inventory of single-family homes for April came in at 6.1 months, down 5.7 percent from one year earlier. The national month’s inventory of single-family homes rose slightly to 9.8 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $194,222, the average sales price for single-family homes dropped 5.8 percent from April 2008, when it was $206,239. However, the figure is at its highest level since last September. The median price of single-family homes in April was $149,050, unchanged from one year earlier. The national single-family median price reported by NAR is $175,200, illustrating the continued higher value and lower cost of living that prevail in the Houston market.

April sales of single-family homes in Houston totaled 4,200, down 22.5 percent from April 2008, and accounted for the 20th consecutive monthly drop. After several months of double-digit increases, year-over-year sales of single-family homes priced at $80,000 and below dipped 2.1 percent in April, reflecting the slowdown in foreclosure-related transactions.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In April 2009, existing single-family home sales totaled 3,519, a 21.8 percent decrease from April 2008. At $178,141, the average sales price for existing homes in the Houston area fell 5.2 percent compared to last year. The median sales price of $139,000 for the month was unchanged from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in April fell compared to one year earlier. In the greater Houston area, 384 units were sold last month versus 570 properties in April 2008, translating to a 32.6 percent decrease in year-over-year sales. However, that represents the highest sales volume for all of 2009.

The average price of a townhouse/condominium dipped to $167,121, down 1.5 percent from one year earlier. However, that represents the highest price since last August. The median price declined 3.4 percent to $135,000 from April 2008 to April 2009, but is unchanged from last month.

Lease Property Update

Demand for single-family rentals increased again in April, demonstrating that rentals remain a viable housing option for buyers who may not yet be qualified or comfortable making a home purchase at this time. Single-family home rentals rose 8.0 percent last month compared to a year earlier. Year-over-year townhouse/condominium rentals rose 12.2 percent.

Houston Real Estate Milestones in April

Seasonal Homebuying Interest Translates to Increased Houston Home Sales in March

Single-family home prices reach highest levels of 2009

HOUSTON — (April 21, 2009) — Declines in the sales and pricing of homes throughout the greater Houston area eased in March, matching a trend that the Federal Reserve noted in several markets around the country in its Beige Book survey released last week. Overall March property sales fell 18.9 percent and sales of single-family homes dropped 16.1 percent versus March 2008, according to new monthly data prepared by the Houston Association of REALTORS® (HAR). However, from February to March of this year, overall property sales volume increased 26.1 percent while sales of single-family home rose 27.8 percent as we enter the spring and summer seasons, a period that traditionally produces higher sales volume than the fall and winter months.

At $145,000, the March single-family home median price – the figure at which half of the homes sold for more and half sold for less – fell 4.4 percent year-over-year, but still attained its highest level of 2009. When foreclosures are removed from the analysis, the median price of traditional single-family homes was flat at $168,000. The average price of a single-family home in Houston dropped 6.0 percent last month to $193,880 compared to March 2008. The median and average price declines mark the smallest drop since levels first turned negative last October.

While sales of foreclosure properties, which typically sell below market prices, continued to weight home prices last month, the effect was milder than in previous months. In March 2009, foreclosures made up 24.5 percent of all single-family home sales in the Houston area compared to 34.0 percent in January and 28.0 percent in February. The median price of March foreclosure sales reported in the MLS tumbled 11.3 percent from $94,700 to $84,000 on a year-over-year basis.

Sales of all property types in Houston for March totaled 5,022, off 18.9 percent compared to March 2008. Total dollar volume for properties sold during the month was $940 million versus $1.2 billion one year earlier, a 23.2 percent decline.

Demand for rental properties rose again in March, with leases of single-family homes up 4.3 percent on a year-over-year basis and leases of townhouses and condominiums up 26.6 percent. Leases of high rise units rose 82.0 percent, a figure that tends to be more variable because of the comparatively small number of units involved.

“It’s too soon to predict exactly when the Houston real estate market will be in healthier territory, but the recent moderation in sales and pricing trends is an encouraging sign,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “For consumers with good credit, this is an outstanding time to buy a home in the greater Houston area because mortgage interest rates are at 50-year lows and there’s a plentiful supply of reasonably priced housing inventory. First-time home buyers also have until December 1st to take advantage of an $8,000 tax credit that does not require repayment,” she added.

March Monthly Market Comparison
The month of March brought Houston’s overall housing market negative results when all listing categories are compared to March of 2008. Total property sales and total dollar volume fell, as did average and median single-family home sales prices.

However, the number of available properties, or active listings, at the end of March fell 12.4 percent from March 2008 to 45,768. That is 1,021 more active listings than February 2009 and regarded as an indication that inventory levels remain balanced.

Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,711, which was 19.1 percent lower than last year and suggests the likelihood of a decline in sales when the April numbers are compiled. The month’s inventory of single-family homes for March came in at 6.1 months, down 3.6 percent from one year earlier. The national month’s inventory of single-family homes remained flat at 9.7 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $193,880, the average sales price for single-family homes dropped 6.0 percent from March 2008, when it was $206,301. However, the figure is at its highest level since last September. The median price of single-family homes in March was $145,000, off 4.4 percent from one year earlier, and equal to its December 2008 level. The national single-family median price reported by NAR is $164,600, illustrating the continued higher value and lower cost of living that prevail in the Houston market.

March sales of single-family homes in Houston totaled 4,355, down 16.1 percent from March 2008, and accounted for the 19th consecutive monthly drop. Year-over-year sales of single-family homes priced at $80,000 and below rose 20.1 percent in March, buoyed by foreclosure-related transactions.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In March 2009, existing single-family home sales totaled 3,624, a 13.4 percent decrease from March 2008. At $178,477, the average sales price for existing homes in the Houston area fell 5.5 percent compared to last year. The median sales price of $133,000 for the month was down 4.9 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in March fell compared to one year earlier. In the greater Houston area, 358 units were sold last month versus 547 properties in March 2008, translating to a 34.6 percent decrease in year-over-year sales.

The average price of a townhouse/condominium dropped to $159,733, down 10.4 percent from one year earlier. The median price dipped 4.7 percent to $134,000 from March 2008 to March 2009.

Lease Property Update

Demand for single-family rentals increased again in March. Single-family home rentals rose 4.3 percent last month compared to a year earlier. Year-over-year townhouse/condominium rentals rose 26.6 percent and rentals of high rise properties leapt by 82.0 percent. The latter figure has a tendency to be more variable because of the comparatively small number of transactions in that housing category.

Houston Real Estate Milestones in March

Foreclosures Pull Houston Home Prices Down Again In February

Month brings declining sales volume and continued demand for rental properties

HOUSTON — (March 17, 2009) — February marked another month of sagging real estate sales and pricing for the greater Houston area, following to a milder degree the trends that have played out around the country since the recession began more than a year ago. Overall February property sales fell 25.9 percent compared to February 2008, and sales of single-family homes declined by 24.6 percent, according to new monthly data prepared by the Houston Association of REALTORS® (HAR).

The average price of a single-family home in Houston dropped 10.5 percent last month to $182,316 compared to February 2008. At $138,970, the February single-family home median price – the figure at which half of the homes sold for more and half sold for less – fell 8.0 percent year-over-year. February marked the fifth consecutive month of price declines.

Sales of foreclosure properties, which typically sell below market prices, continued to place a drag on home prices last month. In February 2009, foreclosures made up 28.0 percent of all single-family home sales in the Houston area compared to 22.6 percent one year earlier. However that is an improvement from January’s 34.0 percent share of single-family homes sales consisting of foreclosures. Part of that is attributed to a 23.0 percent month-over-month increase in overall property sales.

The median price of foreclosure sales reported in the MLS tumbled 15.0 percent from $94,000 to $79,900 on a year-over-year basis. The median price of traditional, non-foreclosure single-family homes dropped just 1.2 percent from $167,000 to $165,000.

Sales of all property types in Houston for January totaled 3,995, off 25.9 percent compared to February 2008. Total dollar volume for properties sold during the month was $710 million versus $1.0 billion one year earlier, a 33.4 percent decline.

Demand for rental properties rose again in February, with leases of single-family homes up 4.3 percent on a year-over-year basis and leases of high rise units up 192.0 percent. The latter figure tends to be more variable because of the comparatively small number of units involved.

“Rentals remain a very attractive option for would-be home buyers throughout the Houston area who may be reluctant or unable to commit to the purchase of a home at this time,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Consumers want to see signs that economic recovery is taking hold, and despite the recent progress made in Washington, we know that’s not going to happen overnight.”

February Monthly Market Comparison
The month of February brought Houston’s overall housing market negative results when all listing categories are compared to February of 2008. Total property sales and total dollar volume fell, as did average and median single-family home sales prices.

However, the number of available properties, or active listings, at the end of February fell 12.8 percent from February 2008 to 44,747. That is 569 more active listings than January 2009 and considered an indication that inventory levels remain balanced.

Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,227, which was 25.4 percent lower than last year and suggests the likelihood of a further decline in sales for March. The month’s inventory of single-family homes for February came in at 5.9 months, down 2.8 percent from one year earlier. The national month’s inventory of single-family homes is approximately 10 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $182,316, the average sales price for single-family homes dropped 10.5 percent from February 2008, when it was $203,797. However, the figure is up $18,000 from January of this year. The median price of single-family homes in February was $138,970, off 8.0 percent from one year earlier, but up about $10,000 from January. The national single-family median price reported by NAR is $169,900, illustrating the continued higher value and lower cost of living that prevail in the Houston market.

February sales of single-family homes in Houston totaled 3,424, down 24.6 percent from February 2008 and accounting for the 18th consecutive monthly drop. Year-over-year sales of single-family homes priced at $80,000 and below rose 35.4 percent in February, largely the result of foreclosure-related transactions.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In February 2009, existing single-family home sales totaled 2,829, a 22.9 percent decrease from February 2008. At $165,897, the average sales price for existing homes in the Houston area fell 11.6 percent compared to last year. The median sales price of $128,000 for the month was also down 8.5 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in February fell compared to one year earlier. In the greater Houston area, 305 units were sold last month versus 448 properties in February 2008, translating to a 31.9 percent decrease in year-over-year sales.

The average price of a townhouse/condominium dropped to $149,498, down 7.8 percent from one year earlier. The median price dipped 5.9 percent to $122,300 from February 2008 to February 2009.

Lease Property Update

Demand for single-family rentals increased again in February. Single-family home rentals rose 4.3 percent in February compared to a year earlier. While year-over-year townhouse/condominium rentals declined 7.0 percent, rentals of high rise properties jumped by 192.0 percent. The latter figure has a tendency to be more variable because of the comparatively small number of transactions in that housing category.

Houston Real Estate Milestones in February

The Houston Real Estate Market Opens 2009 With Weakened Performance As The U.S. Recession Drags On

Foreclosures weigh January home prices down; rental demand grows

HOUSTON — (Feb 17, 2009) — Property sales throughout the greater Houston area stayed in negative territory during the first month of 2009, reflecting the lingering effects the nation’s recession is having on consumer confidence. Overall January property sales fell 26.4 percent compared to January 2008, and sales of single-family homes declined by 22.7 percent, according to new monthly data compiled by the Houston Association of REALTORS® (HAR).

The average price of a single-family home in Houston dropped 12.8 percent last month to $164,922 compared to January 2008. At $127,850, the January single-family home median price – the figure at which half of the homes sold for more and half sold for less – fell 8.5 percent year-over-year. January marked the fourth consecutive month of price declines.

Much of the pricing drop can be attributed to an increase in foreclosure sales, which typically sell below market prices. In January 2009, foreclosures made up 34.0 percent of all single-family home sales in the Houston area compared to 25.0 percent one year earlier. The median price for foreclosure sales reported in the MLS tumbled 23.0 percent from $104,000 to $80,500 on a year-over-year basis. The median price of traditional, non-foreclosure single-family homes dropped just 1.0 percent from $157,000 to $155,500.

Sales of all property types in Houston for January totaled 3,240, off 26.4 percent compared to January 2008. Total dollar volume for properties sold during the month was $530 million versus $817 million one year earlier, a 35.1 percent decline.

January brought a continued escalation in demand for rental properties, with leases of single-family homes up 4.8 percent and townhouses/condominiums up 24.6 percent on a year-over-year basis. This suggests that consumers who otherwise might purchase a home are instead opting to lease in order to enjoy the feel of homeownership without the financial obligations associated with a mortgage.

“Passage of the economic stimulus package will by no means trigger a home buying frenzy, but eliminating the repayment provision in the first-time home buyer tax credit will help bring buyers to the market and further reduce housing inventory,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Restoring consumer confidence is vital to healing our economy, and Congress and the president have just taken an historic step toward initiating that process.”

January Monthly Market Comparison
The month of January brought Houston’s overall housing market negative results when all listing categories are compared to January of 2008. Total property sales and total dollar volume fell, as did average and median single-family home sales prices.

However, the number of available properties, or active listings, at the end of January fell 12.9 percent from January 2008 to 44,178. That is 430 more active listings than December 2008 and considered an indication that inventory levels remain balanced.

Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,216, which was 24.7 percent lower than last year and suggests another month of declining sales for February. The month’s inventory of single-family homes for January came in at 5.7 months, down 4.1 percent from one year earlier and unchanged from December, which marked the lowest level of 2008. The national month’s inventory of single-family homes is approximately 10 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $164,922, the average sales price for single-family homes dropped 12.8 percent from January 2008, when it was $189,143. The median price of single-family homes in January was $127,850, off 8.5 percent from one year earlier. That compares to the national single-family median price of $174,700 reported by NAR. These data continue to demonstrate the higher value and lower cost of living that prevail in the Houston market.

Additionally, January sales of single-family homes in Houston came in at 2,827, down 22.7 percent from January 2008 and accounting for the 17th consecutive monthly drop. Year-over-year sales of single-family homes priced at $80,000 and below rose 11.2 percent in January, fueled largely by foreclosure-related transactions.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In January 2009, existing single-family home sales totaled 2,367, a 19.6 percent decrease from January 2008. At $147,646, the average sales price for existing homes in the Houston area fell 14.5 percent compared to last year. The median sales price of $117,000 for the month was also down 8.6 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in January fell compared to one year earlier. In the greater Houston area, 203 units were sold last month versus 348 properties in January 2008, translating to a 41.7 percent decrease in year-over-year sales.

The average price of a townhouse/condominium dipped to $153,773, down 3.2 percent from one year earlier. The median price dropped 2.1 percent to $125,000 from January 2008 to January 2009.

Lease Property Update

Demand for single-family and townhouse/condominium rentals increased again in January. Single-family home rentals rose 4.8 percent in January compared to a year earlier, while year-over-year townhouse/condominium rentals were up 17.0 percent.

Houston Real Estate Milestones in January

Houston’s Real Estate Market Closes The Books On 2008 With Continued Sluggish Sales And Lower Pricing

Demand for rental properties soars as consumers await economic relief from Uncle Sam

HOUSTON — (Jan. 20, 2009) — Property sales throughout the greater Houston area ended 2008 as they began, with lower volume following two consecutive record years. Overall property sales fell 16.0 percent last month when compared to December 2007, and sales of single-family homes were down 13.5 percent, according to new monthly data compiled by the Houston Association of REALTORS® (HAR). However, the figures show dramatic improvement from November, when both total property and single-family sales volume declined by more than 30 percent.

The average price of a single-family home in Houston dropped 10.4 percent last month to $192,135 compared to December 2007, but rose 1.0 percent to $208,266 on a year-to-date basis. At $145,000, the median price of a single-family home in December fell 6.1 percent year-over-year. The median price represents the figure at which half of the homes sold for more and half sold for less. On a year-to-date basis, the median price was unchanged at $152,000.

Sales of all property types in Houston for December 2008 totaled 5,126, off 16.0 percent compared to December 2007. Total dollar volume for properties sold during the month was $960 million versus $1.2 billion one year earlier, a 24.5 percent decline. Full-year 2008 sales of 69,220 properties produced $14 billion in total dollar volume, which was 15.9 percent lower than the 2007 full-year total dollar volume, but flat in comparison to 2005.

Rental properties remained in high demand in December, with leases of single-family homes up 26.2 percent and townhouses/condominiums up 24.6 percent on a year-over-year basis. This continues to suggest that many consumers are opting to rent property instead of purchase until they’re convinced of meaningful improvement in the economy.

“Lower mortgage rates are a good first step to reviving the real estate market, but many consumers are looking to Washington for the full scope of the economic stimulus plan before committing to major spending,” said Vicki Fullerton, HAR chair and Broker of Record at RE/MAX of The Woodlands & Spring. “This wait-and-see approach has kept Houston’s rental market strong, and even with December’s lower home prices, we’re maintaining an even keel when you compare Houston to the national picture.”

2008 Annual Market Comparison
For the full-year 2008 Houston housing market, the numbers showed mixed results. There was a 17.3 percent decline in volume of total property sales and total dollar volume tumbled 15.9 percent, which matched the market’s 2005 full-year total dollar volume. However the average sales price for a single family home in 2008 was $208,266, or a 1.0 percent increase on a year-over-year basis, with the median single-family home price of $152,000 flat compared to 2007.

December Monthly Market Comparison
The month of December brought Houston’s overall housing market disappointing results when all listing categories are compared to December of 2007. Total property sales and total dollar volume fell, as did average and median single-family home sales prices. Total year-to-date property sales were down 17.3 percent.

The number of available properties, or active listings, at the end of December fell 11.7 percent from December 2007 to 43,748. That’s 3,606 fewer active listings than November 2008 and is considered an indication that inventory levels are balanced.

Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,290, which was 12.8 percent lower than last year and suggests another likely sales decline next month. The month’s inventory of single-family homes for December came in at 5.7 months, down 3.1 percent from one year earlier and the lowest level of 2008.

Single-Family Homes Update

At $192,135, the average sales price for single-family homes dropped 10.4 percent from December 2007, when it was $214,363. The median price of single-family homes in November was $145,000, off 6.1 percent from one year earlier. That compares to the national single-family median price of $180,800 reported by the National Association of REALTORS®. These data continue to demonstrate the higher value and lower cost of living that prevail in the Houston market.

Additionally, total December sales of single-family homes in Houston came in at 4,443, down 13.5 percent from December 2007 and the 16th consecutive monthly drop.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In December 2008, existing single-family home sales totaled 3,527, an 8.7 percent decrease from December 2007. At $171,774, the average sales price for existing homes in the Houston area fell 11.5 percent compared to last year. The median sales price of $130,000 for the month was also down 6.1 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in December fell compared to one year earlier. In the greater Houston area, 378 units were sold last month versus 498 properties in December 2007, translating to a 24.1 percent decrease in year-over-year sales.

The average price of a townhouse/condominium dipped to $167,344, down 3.4 percent from one year earlier. The median price fell 9.7 percent to $125,000 from December 2007 to 2008.

Lease Property Update

Demand for single-family and townhouse/condominium rentals increased again in December. Single-family home rentals rose 26.2 percent in December compared to a year earlier, while year-over-year townhouse/condominium rentals were up 24.6 percent.

Houston Real Estate Milestones in December

Houston Property Sales Volume and Prices Decline in November Amid Growing National Economic Woes

NAR’s chief economist still pegs Houston as one of the nation’s top-performing real estate markets in 2009

HOUSTON — (Dec. 16, 2008) — The ailing U.S. economy sent ripples across the greater Houston area in November as fewer properties were bought and sold versus one year earlier. According to new monthly data compiled by the Houston Association of REALTORS® (HAR), overall property sales fell 33.7 percent last month when compared to November 2007, with sales of single-family homes down 31.7 percent. Rental properties remained in demand for the month, with leases of single-family homes up 16.0 percent and townhouses/condominiums up 2.8 percent on a year-over-year basis.

The average price of a single-family home dropped 7.0 percent last month to $187,766 from $201,862 in November 2007. At $137,500, the median price of a single-family home in November fell 7.7 percent year-over-year. The median price represents the figure at which half of the homes sold for more and half sold for less. However, on a year-to-date basis, home prices are 2.0 percent above 2007 levels, continuing to place Houston on more solid footing than markets throughout California, Florida and Nevada that have experienced double-digit home depreciation since the housing market downturn began more than a year ago.

Sales of all property types in Houston for November 2008 totaled 3,906, off 33.7 percent compared to November 2007. Total dollar volume for properties sold during the month was $719 million versus $1.1 billion one year earlier, a 37.4 percent decline.

“These are some of the toughest economic times our country has ever experienced, and Houston consumers are understandably cautious as they absorb news about layoffs, declining oil prices and other negative financial reports,” said Michael Levitin, HAR chairman and principal of HTownRealty.com. “Many are opting to rent property for the time being.”

During a late November stop in Houston, National Association of REALTORS® Chief Economist Lawrence Yun praised the stability of Houston home prices and predicted that Houston and Denver would be the nation’s top performers in 2009. Yun forecast at least a five percent increase in Houston home pricing, also noting that local month’s inventory has held around six months while the national rate has been approximately 10 months, another positive indicator. He stated that despite weakness in the oil patch, overall local job growth would help Houston maintain its healthier performance relative to the nation.

“We are encouraged by Dr. Yun’s outlook for our market and hope that as Congress and the Obama administration iron out details of the federal financial bailout plan, local consumers realize that 2009 promises to be a sound time to buy or sell a home in Houston,” added Levitin.

November Monthly Market Comparison
The month of November brought Houston’s overall housing market disappointing results when comparing all listing categories to November of 2007. Total property sales and total dollar volume fell, as did average and median single-family home sales prices.

The number of available properties, or active listings, at the end of November fell 9.3 percent from November 2007 to 47,354. That’s 1,662 fewer active listings than October 2008, and is seen as an indication that inventory levels are balanced and that home prices should remain stable.

Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,144, which was 24.4 percent lower than last year and suggests another likely sales decline next month. The month’s inventory of single-family homes for November came in at 6.1 months, unchanged from one year earlier and the lowest level since February of this year.

Single-Family Homes Update

At $187,766, the average sales price for single-family homes dropped 7.0 percent from November 2007 when it was $201,862. The median price of single-family homes in November was $137,500, off 7.7 percent from one year earlier. That compares to the national single-family median price of $181,800 reported by the National Association of REALTORS®. These data continue to demonstrate the higher value and lower cost of living that prevail in the Houston market.

Additionally, total November sales of single-family homes in Houston came in at 3,401, down 31.7 percent from November 2007 and the fifteenth straight monthly drop.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In November 2008, existing single-family home sales totaled 2,833, a 28.3 percent decrease from November 2007. At $164,694, the average sales price for existing homes in the Houston area fell 12.1 percent compared to last year. The median sales price of $125,200 for the month was also down 8.7 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in October fell compared to one year earlier. In the greater Houston area, 421 units were sold last month versus 534 properties in October 2007, translating to a 21.2 percent decrease in year-over-year sales.

The average price of a townhouse/condominium dipped to $155,235, down 4.2 percent from one year earlier. The median price fell 9.8 percent to $118,250 from November 2007 to 2008.

Lease Property Update

Demand for single-family and townhouse/condominium rentals increased again in November. Single-family home rentals rose 16.0 percent in November compared to a year earlier, while year-over-year townhouse/condominium rentals were up 2.8 percent.

Houston Real Estate Milestones in November