Overall March sales of single-family homes across greater Houston climbed 10.8 percent compared to March 2009, according to the latest monthly data compiled by the Houston Association of Realtors® (HAR). All single-family home pricing segments except the under-$80,000 market experienced gains, with the sharpest increases in homes priced from $250,000 and above. Sales of all property types rose 14.5 percent in March on a year-over-year basis.

The average price of a single-family home appreciated for the sixth straight month, reaching $212,403, up 10.2 percent versus March 2009. That represents the highest pricing level for a March in Houston. At $154,250, the March single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 6.4 percent from one year earlier. That represents the 11th consecutive monthly increase in median price and is the highest dollar figure for a March in Houston.

Foreclosure property sales reported in the Multiple Listing Service (MLS) fell by 14.1 percent in March compared to one year earlier. The median price of March foreclosure sales rose 4.2 percent to $87,500 on a year-over-year basis.

Sales of all property types in Houston for March totaled 5,758, up 14.5 percent compared to March 2009. Total dollar volume for properties sold during the month was $1.2 billion versus $938 million one year earlier, representing a 24.2 percent increase.

“Local mortgage lenders I have spoken with estimate that between 50 to 65 percent of their recent business is related to the first-time homebuyer tax credit,” said Margie Dorrance, HAR chair and principal at Keller Williams Realty Metropolitan. “Homebuyers are nearly out of time to take advantage of the credit since a contract must be in the title company by midnight on April 30, although closing can take place as late as June 30.”

March Monthly Market Comparison
The month of March brought Houston’s overall housing market positive results when all listing categories are compared to March of 2009. Total property sales, total dollar volume and both median and average single-family home sales prices all increased on a year-over-year basis.

The number of available properties, or active listings, at the end of March rose 7.1 percent from March 2009 to 49,030. That represents 2,372 more active listings than one month earlier, in February 2010, and is widely thought to reflect increased activity stemming from the homebuyer tax credit.

Month-end pending sales for March—those listings expected to close within the next 30 days—totaled 4,242, up 14.3 percent from last year. The months inventory of single-family homes for March stretched slightly to 6.7 months compared to 6.1 months one year earlier, but remains better than the national months inventory of single-family homes of 8.6 months, reported by the National Association of REALTORS® (NAR).

CATEGORIES	MARCH 2009	MARCH 2010	PERCENT CHANGE
Total property sales	5,029	5,758	14.5%
Total dollar volume	$938,653,322	$1,166,154,769	24.2%
Total active listings	45,768	49,030	7.1%
Total pending sales	3,711	4,242	14.3%
Single-family home sales	4,360	4,832	10.8%
Single-family average sales price	$192,799	$212,403	10.2%
Single-family median sales price	$145,000	$154,250	6.4%
Months inventory*	6.1	6.7	10.3%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market. Single-Family Homes Update

March sales of all single-family homes in Houston totaled 4,832, up 10.8 percent from March 2009. The increase ended three consecutive monthly declines in sales. Broken out by segment, sales of single-family homes priced between $250,000 and $500,000 rose 30.6 percent in March while sales of luxury homes—those priced from $500,000 to the millions—soared 49.5 percent. Homes priced between $80,000 and $150,000 were up 6.5 percent while those in the $150,000 to $250,000 range rose 11.8 percent. By contrast, sales of homes in the below-$80,000 segment were off 8.4 percent.

Heightened sales activity in the higher end of the housing market drove pricing up again in March. At $154,250, the median sales price for single-family homes rose for the 11th consecutive month, up 6.4 percent from March 2009. The national single-family median price reported by NAR is $164,300, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. The average price of single-family homes in March was $212,403, an increase of 10.2 percent from one year earlier. That represents the sixth straight monthly jump in the average price. Both median and average pricing reached the highest levels ever recorded for a March in Houston.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In March 2010, existing home sales totaled 4,057, a 14.4 percent increase from March 2009. The median sales price rose 9.4 percent to $144,900 compared to last year. The average sales price of $198,271 increased 12.2 percent from its March 2009 level.
Townhouse/Condominium Update

The number of townhouses and condominiums that sold in March jumped 30.4 percent compared to one year earlier. In the greater Houston area, 463 units were sold last month versus 355 properties in March 2009.

The median price of a townhouse/condominium slid 8.9 percent year-over-year to $123,000. The average price was flat at $160,886 from March 2009 to March 2010.

Lease Property Update

Demand for single-family home rentals rose 15.3 percent in March compared to a year earlier. Year-over-year townhouse/condominium rentals increased 13.9 percent.
Houston Real Estate Milestones in March

Founded in 1918, the Houston Association of Realtors® (HAR) is a 25,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest local association/board of Realtors® in the United States as well as the largest individual membership trade association in Houston.

]]> http://thetaterealtors.wordpress.com/2010/04/22/houston-single-family-home-sales-and-prices-climb-in-march-as-the-homebuyer-tax-credit-deadline-looms-strongest-sales-volume-continues-among-homes-priced-from-250k-and-above/feed/ 0 thetaterealtors http://thetaterealtors.wordpress.com/2010/04/09/houston-first-quarter-real-estate-sales-volume-up-13/ http://thetaterealtors.wordpress.com/2010/04/09/houston-first-quarter-real-estate-sales-volume-up-13/#comments Fri, 09 Apr 2010 19:45:32 +0000 thetaterealtors http://thetaterealtors.wordpress.com/?p=31 ]]> April 9th, 2010

Houston first-quarter real estate sales volume up 13%

First-quarter real estate sales indicate Houston has pulled out of a negative sales position and displays the beginning of very positive trends. The latest market metrics correlate very closely with news from the Texas Workforce Commission that Houston-area employers added 10,300 jobs from January to February, an increase of 2,000 real job gains than is atypical for the season.  Employment is the single largest driver of home sales.

Last year in February 2009, Houston experienced a 24% decline in year-to-date sales over 2008.  Every month following February, sales declines began to decline and the year ended with 7% fewer home sales than 2008. 

1. First Quarter 2010 sales are equal to those found in First Quarter 2009 however,
2. Dollar volume sales are up by 13% for a total of $2,183,412,127. 
3. The average sales price is up 13% at $204,191 and the median sales price is up 8% at $149,900. 
4. The average price per square foot is up 10% and now stands at $87. 
5. Homes on the market are up by 3% with 28,793 listings, certainly not a supply that would impact home values.  The best news of all is that
6. Days-on-Market, the average number of days it takes to sell a Houston home is down by 16%. Days-on-Market are 81.

Previously, we mentioned the rise in upscale homes as a rationale for a rise in average and median price in the overall Houston market during the First Quarter.  These were attributable to only 23% of all sales in Houston.

What home price classes were the hottest selling in Houston through First Quarter?  

The following table indicates by price class the hottest selling price ranges in Houston in 2010:

 As you can see from the Top Ten Selling Price Classes in Houston for 2010, hot selling prices ranged from $80,000-$399,000. These price classes are expected to be hot in Houston at least through June 30^th because of the time-contingent 2010 IRS Home Buyer Tax Credit.  Setting aside this temporary demand incentive, these price classes are also more aligned with historical price class demand in Houston.

These attributes will spark demand through June, but what about the rest of the year?  While no one has an accurate crystal ball, Dr. Barton Smith of the UH Center for Public Policy remarked,” A year ago, I thought we’d be dragging behind the parade but we’re just not doing that.”

The year 2009 was a bleak year for the economy and residential real estate and first-quarter statistics indicate that we are moving toward a healthier economy and a more robust residential real estate market. Hallelujah Houston!

You can read more on these studies at:

1. HousingWatch.com
2. NationalBuilderNews.com
3. Harvard University Joint Center for Housing

The housing shortage prediction is based on

1. Gen-Yer’s, 81 million strong, believe in homeownership and there are 5 million more than there were Boomers.  
2. According to the National Association of Realtors®, 47% of home buyers in 2009 were first-time home buyers and they predict that in 2010, first-time home buyers will represent 52% of all homes sales.   The Gen-Yer’s housing impact has only just begun.
3. According to their report, Harvard University’s Joint Center for Housing Studies anticipates household growth during the next 10 years to range between 12.5 million and 14.8 million. All those new households mean demand for many new housing units.   
4. Bottom line, the number of homes being built simply is not enough to keep up with America’s growing population.

 Will the Greater Houston Metropolitan area be affected?

Houston’s median age is among the lowest of the nation’s major metropolitan areas.  The median age is 33.1. Almost one third of Houston’s population is Gen Y – 28.8% and 58% are of prime home buying age.  It’s estimated that 27.8% have college degrees – one of the highest in the nation.  Source:  Greater Houston Partnership – www.houston.org.

According to the Greater Houston Partnership, Houston is expected to see 1.9-2.7% GDP growth in 2010 and they anticipate Houston to be on the employment

upswing by 4^th Quarter 2011. 

Thereafter, the metropolitan area should return to vigorous growth.

Our conclusion, based on current demographics, Houston’s growth predictions and the reduction in home building, is that Houston could very well face a housing shortage in the future.

 And right now home buyers can capitalize on

1. A good selection of affordable homes
2. The 2010 Homebuyer Tax Credit for First-Time and Current Homeowners
3. Lower interest rates, which are expected to rise after the April 30^th Tax Credit expires.

We invite you to conduct your own research on the best time to buy a home, but rarely in history have homes and the interest rates to buy them been “on sale”.  Waiting may prove to be very expensive indeed.

Overall February sales of single-family homes across the greater Houston area slid 5.8 percent compared to February 2009, according to the latest monthly data compiled by the Houston Association of REALTORS® (HAR). When broken out by segment, however, sales of single-family homes priced from $250,000 and above recorded double-digit gains. Sales of all property types declined 7.4 percent in February on a year-over-year basis.

The average price of a single-family home appreciated for the fifth straight month, reaching $203,271, up 12.3 percent versus February 2009. At $147,000, the February single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 6.5 percent from one year earlier. That represents the tenth consecutive monthly increase in median price.

Foreclosure property sales reported in the Multiple Listing Service (MLS) fell by 18.7 percent in February compared to one year earlier. The median price of February foreclosure sales rose 7.5 percent to $86,000 on a year-over-year basis.

Sales of all property types in Houston for February totaled 3,843, down 4.6 percent compared to February 2009. Total dollar volume for properties sold during the month was $747 million versus $711 million one year earlier, representing a 5.1 percent increase.

“We are encouraged by steady homebuying activity in the higher-end single-family segment, which has strengthened Houston’s already enviable real estate pricing,” said Margie Dorrance, HAR chair and principal at Keller Williams Realty Metropolitan. “We expect to see consumer interest extend to the other segments as the spring homebuying season heats up.”

February Monthly Market Comparison
The month of February brought Houston’s overall housing market mixed results when all listing categories are compared to February of 2009. Total property sales declined while total dollar volume and both median and average single-family home sales prices rose on a year-over-year basis.

The number of available properties, or active listings, at the end of February rose 4.3 percent from February 2009 to 46,658. That represents 1,448 more active listings than one month earlier, in January 2010, and may reflect increased activity stemming from the federal homebuyer tax credit that expires on April 30.

February’s month-end pending sales—those listings expected to close within the next 30 days—totaled 3,168, down 1.8 percent from last year. The months inventory of single-family homes for February grew to 6.3 months compared to 5.9 months one year earlier, but remains better than the national months inventory of single-family homes of 7.8 months, reported by the National Association of REALTORS® (NAR).  

CATEGORIES	FEBRUARY 2009	FEBRUARY 2010	PERCENT CHANGE
Total property sales	4,030	3,843	-4.6%
Total dollar volume	$710,696,861	$747,032,015	5.1%
Total active listings	44,747	46,658	4.3%
Total pending sales	3,227	3,168	-1.8%
Single-family home sales	3,450	3,251	-5.8%
Average single-family sales price	$180,966	$203,271	12.3%
Median single-family sales price	$138,000	$147,000	6.5%
Months inventory*	5.9	6.3	7.5%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.   Single-Family Homes Update

February sales of all single-family homes in Houston totaled 3,251, down 5.8 percent from February 2009. This is the Houston market’s third consecutive monthly decline in sales. However, broken out by segment, sales of single-family homes priced between $250,000 and $500,000 rose 15.8 percent in February while sales of luxury homes—those priced from $500,000 to the millions—climbed 14.9 percent. By contrast, sales of homes in the below-$80,000 segment fell 27.5 percent and those priced between $80,000 and $150,000 were unchanged.

Heightened sales activity in the higher end of the housing market drove pricing up in February. At $147,000, the median sales price for single-family homes rose for the tenth consecutive month, up 6.5 percent from February 2009. The national single-family median price reported by NAR is $163,600, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. The average price of single-family homes in February was $203,271, an increase of 12.3 percent from one year earlier. That represents the fifth straight monthly jump in the average price.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In February 2010, existing home sales totaled 2,681, a 5.1 percent drop from February 2009. The median sales price rose 7.5 percent to $136,000 compared to last year. The average sales price of $189,998 increased 15.7 percent from its February 2009 level.
Townhouse/Condominium Update

The number of townhouses and condominiums that sold in February rose 8.9 percent compared to one year earlier. In the greater Houston area, 330 units were sold last month versus 303 properties in February 2009.

The median price of a townhouse/condominium edged up 2.5 percent year-over-year to $128,000. The average price was up 3.9 percent to $158,648 from February 2009 to February 2010.

Lease Property Update

Demand for single-family home rentals rose 9.9 percent in February compared to a year earlier. Year-over-year townhouse/condominium rentals shot up 20.1 percent.
Houston Real Estate Milestones in February

]]> http://thetaterealtors.wordpress.com/2010/03/16/february-brings-robust-sales-activity-to-upper-segments-of-the-houston-real-estate-market/feed/ 0 thetaterealtors http://thetaterealtors.wordpress.com/2010/02/19/january-home-building-exceeds-expectations/ http://thetaterealtors.wordpress.com/2010/02/19/january-home-building-exceeds-expectations/#comments Fri, 19 Feb 2010 20:35:29 +0000 thetaterealtors http://thetaterealtors.wordpress.com/?p=24 ]]> WASHINGTON (Associated Press) – Construction of new homes and apartments in January rose 2.8 percent to 591,000 units at a seasonally adjusted annual rate, surpassing economists’ expectations of 580,000 units, according to the Commerce Department.

Construction of single-family homes increased 1.5 percent to a seasonally adjusted rate of 484,000 units. Multi-family construction reported a 9.2 percent increase to an annual rate of 107,000 units.

Construction rose 1 percent in the South and 3.2 percent in the Midwest. The majority of last month’s improved construction rates were due to the 10 percent jump in activity in the Northeast and the 8.9 percent increase in the West.

January’s numbers represented a 21.1 percent increase from January 2009 and the fastest building rate since July.

Additionally, December’s construction rates were revised by the Commerce Department from 557,000 units to 575,000 units. However, even with the revision, activity fell 0.7 percent in the last month of 2009. This dip was attributed to severe weather in many parts of the country.

Applications for building permits, considered a good measure of future activity, fell 4.9 percent last month to a rate of 621,000 after two months of significant increases.

At $144,500, the January single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 11.9 percent from one year earlier. That represents the ninth consecutive monthly increase in median price as well as the highest Houston median recorded in a January. The average price of a single-family home appreciated for the fourth straight month, reaching $194,154, up 18.4 percent versus January 2009. That figure also represents the highest for a January in Houston.

Foreclosure property sales reported in the Multiple Listing Service (MLS) fell by 30.1 percent in January compared to one year earlier. The median price of January foreclosure sales rose 4.6 percent to $84,750 on a year-over-year basis.

Sales of all property types in Houston for January totaled 3,049, down 7.4 percent compared to January 2009. Total dollar volume for properties sold during the month was $565 million versus $535 million one year earlier, representing a 5.6 percent increase.

“Several overlapping factors influenced the Houston housing market as the new year began,” said Margie Dorrance, HAR chair and principal at Keller Williams Realty Metropolitan. “These include both the first-time homebuyer tax credit and the expanded credit for existing homeowners, which may have prompted more listing activity. Strong sales activity in the higher-end single-family home segment also contributed to an overall higher average sales price for the Houston market. We hope to see both sales and pricing continue to reflect a robust real estate market as the April 30 tax credit deadline approaches and we enter the traditionally busy spring homebuying season.”

January Monthly Market Comparison
The month of January brought Houston’s overall housing market mixed results when all listing categories are compared to January of 2009. Total property sales declined while total dollar volume and both median and average single-family home sales prices rose on a year-over-year basis.

The number of available properties, or active listings, at the end of January edged up 2.3 percent from January 2009 to 45,210. That represents 2,025 more active listings than one month earlier, in December 2009, and is thought to reflect increased activity stemming from the homebuyer tax credit that expires on April 30

January’s month-end pending sales—those listings expected to close within the next 30 days—totaled 2,783, down 13.5 percent from last year. That suggests there will likely be another sales decline when the February numbers are tallied. The months inventory of single-family homes for January inched upward to 6.1 months compared to 5.7 months one year earlier, but remains better than the national months inventory of single-family homes of 7.2 months, reported by the National Association of REALTORS® (NAR).

CATEGORIES	JANUARY 2009	JANUARY 2010	PERCENT CHANGE
Total property sales	3,292	3,049	-7.4%
Total dollar volume	$535,131,442	$565,091,875	5.6%
Total active listings	44,178	45,210	2.3%
Total pending sales	3,216	2,7783	-13.5%
Average single-family sales price	$163,983	$194,154	18.4%
Median single-family sales price	$129,110	$144,500	11.9%
Months inventory*	5.7	6.1	6.4%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market. Single-Family Homes Update

January sales of all single-family homes in Houston totaled 2,514, down 12.3 percent from January 2009. This is the Houston market’s second consecutive monthly decline in sales. However, broken out by segment, sales of single-family homes priced between $250,000 and $500,000 jumped 21.6 percent in January while sales of luxury homes—those priced from $500,000 to the millions—surged 40.0 percent. By contrast, sales of homes in the below-$80,000 segment fell 28.9 percent and those priced between $80,000 and $150,000 slid 19.3 percent.

Heightened sales activity in the higher end of the housing market drove pricing up in January. At $144,500, the median sales price for single-family homes rose for the ninth consecutive month, up 11.9 percent from January 2009. That’s its highest median for a month of January in Houston. The national single-family median price reported by NAR is $177,500, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. The average price of single-family homes in January was $194,154, an increase of 18.4 percent from one year earlier. That represents the fourth straight monthly jump in the average price and the highest for a January in Houston.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In January 2010, existing home sales totaled 2,071, an 11.9 percent drop from January 2009. The median sales price rose 13.7 percent to $133,000 compared to last year. The average sales price of $180,159 shot up 23.0 percent from its January 2009 level.
Townhouse/Condo Update

The number of townhouses and condominiums that sold in January rose 14.8 percent compared to one year earlier. In the greater Houston area, 241 units were sold last month versus 210 properties in January 2009.
The median price of a townhouse/condominium fell 11.3 percent year-over-year to $111,500. The average price slipped 4.3 percent to $147,501 from January 2009 to January 2010.

Lease Property Update

Demand for single-family home rentals rose 4.7 percent in January compared to a year earlier. Year-over-year townhouse/condominium rentals climbed 5.1 percent.
Houston Real Estate Milestones in January

Founded in 1918, the Houston Association of Realtors® (HAR) is a 25,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest local association/board of Realtors® in the United States as well as the largest individual membership trade association in Houston.

]]> http://thetaterealtors.wordpress.com/2010/02/16/houston%e2%80%99s-luxury-home-market-gets-a-boost-in-january/feed/ 0 thetaterealtors http://thetaterealtors.wordpress.com/2010/02/11/15/ http://thetaterealtors.wordpress.com/2010/02/11/15/#comments Thu, 11 Feb 2010 19:38:12 +0000 thetaterealtors http://thetaterealtors.wordpress.com/?p=15 ]]> When you first review the single-family residential market for January 2010, you might think everything you learned in Economics 101 is irrelevant. How do you have fewer home sales, fewer contracts written and higher average and median sales price in comparison to last year? The answer is in the price classes of homes that closed during the month. Homes priced above $500,000 experienced double-digit declines last year, except for the $800,000-$899,999 price class which saw a 1% increase in number of homes sold.

Now comes January 2010, and all price classes above $500,000 are in double-digit increases. There are 2 exceptions: $700,000-$799,999 price class experienced a 9% decline over last year and $800,000-$899,999 price class experienced a 117% increase, the highest increase of all price classes. That is perplexing – a price class just below a higher price class experiences a decline while the price class above breaks all records. Go figure. There were also 19 homes that sold for over a million giving that price class a 27% increase over sales the previous year.

All sales in January priced over $500,000 represented only 5% of the total units sold in Houston, however the impact these price classes sold had on average sales price and median sales price make it appear that there is home price appreciation in the Houston overall market. Houston is so large, it is like a mosaic. Some areas are shining brightly while others are not as lustrous. For a breakdown of activity by area with a map, go to http://garygreene.mediaroom.com/index.php?s=38&cat=14.
Houston real estate sales in January 2010 experienced:

1. A 12% decline in single-family homes or a total of 2,514 sales.
2. A 4% increase in dollar volume sales for a total of $488,103,156.
3. An 18% increase in average sales price which is currently $194,154.
4. Days on the Market [DOM] – the time it takes on average to sell a single-family home in Houston declined 16% and is currently 80 DOM.
5. Pending sales dropped 17% for a total of 2,301 contracts written.
6. Current listings are down 1% for a total single-family listing count of 27,465.

Prudential Gary Greene, Realtors® believes the housing market will pick up steam as we approach the Spring selling season for 2 reasons:

1. The IRS Home Buyer Tax Credit benefits both current homeowners as well as first-time home buyers and expires on April 1. To see if you qualify, go to

http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

2. Interest rates are at an all-time low and when these two benefits coincide, the result is a flurry of buying activity that will culminate before April.

This will spark demand through April, but what about the rest of the year? While Houston lost jobs in 2008-2009, most economic experts anticipate the job growth to return to pre-recession levels beginning this year and extending into the entire 2011. Jobs, more so than tax credits and low interest rates are the biggest driver of home sales.

Previously, we mentioned the rise in upscale homes as a rationale for a rise in average and median price in the overall Houston market for January 2010. These were attributable to only 5% of all sales in Houston.

What home price classes were the hottest selling in Houston in January 2010?

The following table indicates by price class the hottest selling price ranges in Houston in 2010:

As you can see from the Top Ten Selling Price Classes in Houston for 2010, hot selling prices ranged from $70,000-$399,000. These price classes and homes priced up to $800,000 are expected to be hot in Houston in 2010. Why? The 2010 IRS Home Buyer Tax Credit expanded to include houses priced up to $800,000.

Data provided by the Houston Association of Realtors® Multiple Listing Service, and The Real Estate Center for Texas A&M and written by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®

Brookings Institute ranked the following Best U.S. Housing Markets as follows:

1. Houston

2. Buffalo

3. Dallas-Fort Worth

4. Wichita

5. Greenville, S.C.

Another milestone for Houston real estate came from the Texas A & M Real Estate Center quoting Mike Inselmann, President of MetroStudy about new home sales in Houston: “Despite sharp cuts in new home production, Houston still ranks as the nation’s top home-building market from March 2008 to March 2009, when builders started 22,502 homes and closed 28,326.”

Bottom line, Houston is the best place to have a housing investment or to acquire one.

The luxury market still leaves me with some concern as inventory expanded once again through the month of May, although the rate by which it had been expanding slowed. As long as the price of oil remains above 70 dollars a barrel I believe it safe to assume that we will see a pickup in the number of sales in the luxury market. If this pans out we will likely see inventory in the luxury market reseed which would be good news for the entire market place. In conclusion, even though the Houston real estate market report was not as positive as those seen of late in Phoenix and parts of California it shows a stable market posed for a rebound when the macro economy turns the corner into a recovery.

See the entire Houston real estate market report released by HAR below:

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

•At $213,474, the average price of a single-family home reached its highest level since August 2008;

•At $157,450, the median price of a single-family home rose to the highest level since August 2008;

•Volume of single-family home sales reached the highest level of 2009;

•Volume of townhouse/condominium sales reached the highest level of 2009;

•Single-family home rentals rose 0.1 percent while rentals of townhouse and condominium units increased 6.2 percent;

•Month’s inventory of single-family homes dipped from 6.5 to 6.2 months compared to the national average of 10.2 months;

•Active listings fell 15.1 percent, representing a generally balanced supply of housing inventory.

TEXAS (Austin Business Journal) – Texas stands out as the top state for business, according to Directorship magazine.

Texas “has a pro-business tax climate that ranks third, a low cost of living, a relatively solid economy and a litigation environment that ranks tenth on our list,” the magazine reported. “Texas also ranks first in the number of Fortune 500 companies located there.”

Major corporate relocations and expansions such as Comerica’s move to Dallas and Caterpillar’s new plant in Seguin were highlighted as reasons for Texas’ ranking.

Directorship evaluated states’ overall economies, tax climates, cost of living and education to determine rankings.