Here’s a snapshot view of statistics on the Houston housing market for 2011:

# of active listings are down by 4% and that’s a good thing!  If sales in 2012 are similar or better than 2011, one could at least expect dollar volume, average sales price, and median sales price to rise this year. 

Economic Forecast for Houston in 2012 is Expansion!

Sales could be much better in Houston if the forecast from the Greater Houston Partnership comes to fruition. The Partnership’s forecast calls for the10-county Houston metro area to add 84,600 jobs in ’12.  Read more in  “From Recovery to Expansion”  Houston homebuilders are moving forward with a positive strategy in 2012 as Mike Inselmann, President of Metro Study, estimates that approximately 20,000 new homes will be built in the Houston area this year. 

And why not?  Houston is a great place to buy a home!  Interest rates are still at record lows, the job forecast for Houston is positive and there is a good selection of well-priced homes available across the metro area.

The top ten selling price classes by units in Houston for 2011 are:

In reviewing the table above over the course of this year, the good news is that each of these price classes has a lower # of months of inventory than has been seen over the previous months. 2011 was a year when inventory in Houston began trending in the right direction – down

In respect to number of sales for 2011, price classes between $90,000 – $159,999 experienced a decline in sales from 2010, however most other price classes experienced increases.

Houston real estate is out of recovery-mode and on a slow but steady upward climb.  Historically, these are the best times to buy a home.

Data compiled by the Houston Association of Realtors® and the Real Estate Center of Texas A & M University and composed by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®.

Here is a snapshot of November YTD 2011:

As you can see above, the overall year is positive in all categories and that alone makes it a much better year than 2010.

What price class of homes are the top selling homes in Houston?

The refreshing part of the above table is one that is not evident unless you peruse all prior blogs on this topic.  It’s the fact that all price classes have experienced fewer months of inventory this month than in previous months.  Many price classes above are on the low end of a buyers market, many are balanced and some price classes reached the sellers market.  Homes with a Months of Inventory over 6 months represents a buyers market, 6 months is a balanced market and below 6 months is a sellers market.  The months of inventory trend has moved closer to a balanced market over the last few months than anything seen within the last 2 years.

With all the economic uncertainty, we are truly blessed to live in Houston which has one of the strongest markets in the nation.  Houston never participated in the bubble and although we were not immune to its national impact, Houston appears to be one of the first markets to be pulling out.

For more on the Houston market, go to http://media.garygreene.com/index.php?s=38&item=328. 

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

Year-to-date, home sales are up 3% [as was the case in September] with 45,096 MLS recorded home sales.  Homes are showing a resiliency in value – the median price of a home in Houston year-to-date is $154,890 and that’s 1% above the median price last year.   Probably the most encouraging market stat at the conclusion of October 2011 is pending sales.  Pending sales are contracts written that are scheduled to close in the near future.  For the year, Houston is up 7% with 30,046 pending sales recorded.  As stated earlier, for the month, Houston is up 9% with 4,080 pending sales recorded.  Both statistics indicate that Houston will end the year with a better sales record than found in 2010  One other statistic that indicates Houston is trending in a positive direction is active listings.  At the close of October, there were 29,016 single-family homes on the market – a 14% decline since last October.  Property types, like townhouses/condos, high rises, multi-family, etc. are experiencing similar double digit inventory declines.  This is the single best trend in stabilization and can ultimately lead to rising home values. 

Here’s a snapshot view of statistics on the Houston housing market through October 2011:

The top ten selling price classes by units in Houston year-to-date:

In reviewing the table above over the course of this year, the good news is that each of these price classes has a lower # of months of inventory than has been seen over the previous months, even in September.  Contrary to the national news, inventory in Houston is certainly trending in the right direction – down.

Price Class Demand Year-to-Date:

The table above depicts the top ten selling price classes year-to-date.  Paradoxically, most price classes below $200,000 have all seen sales declines over the last year, whereas price classes below $80,000 and above $500,000 have experienced increases, [many are experiencing double digit increases] in sales over last year.  The largest increase in sales by price class has been in the $1,000,000 + price range.  Home sales of $1,000,000+ have increased by 18% over this time last year.  When the two extreme price classes see double-digit increases, the overall average sales price does not accurately reflect the current state of the market.  Our average sales price currently shows a 2% increase for the year.  Median sales price, which is up year-to-date by 1% is probably more realistic in terms of reflecting the trend in home values.  The current median sales price indicates that Houston has remained resilient during very turbulent economic times.  A 1% increase in median sales prices is a statistic every market in the nation would be happy to have. 

We are fortunate to live in Houston where it’s all good and getting better.

Data compiled by the Houston Association of Realtors® and the Real Estate Center of Texas A & M University and composed by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®.

This good news correlates with other good news that rolled into Houston in September:

1. Texas boasts the best business climate in the country, according to a new survey of U.S. corporate executives conducted by Development Counsellors International (DCI). It was the fifth consecutive time the Lone Star State has ranked first in the survey. DCI said Texas was the ”clear-cut favorite” among the 322 survey respondents, with 49.4 percent identifying the state as having the most favorable business climate. The corporate decision-makers who named Texas as having the most favorable business climate most frequently cited “tax climate” (44 percent), “pro-business climate” (31 percent) and “economic development support/incentives” (15 percent) as reasons for their positive perceptions.
2. One of the “healthiest employment markets in the country” will keep Houston office properties among the nation’s strongest performers this year, reports Marcus & Millichap in its third-quarter 2011 office market update. Among the firm’s projections for Houston for the remainder of 2011:

• The city will add 98,000 jobs this year, an increase of 3.9 percent, the nation’s largest. Last year, the metro gained 45,900 positions, climbing 1.8 percent. Office users will create 17,900 spots, rising 3.4 percent.

Finally, as the Panama Canal prepares to open more gates to expand commerce, the Houston Ship Channel is preparing to gain a tremendous thrust in economic development as a result of it.

There is plenty of good news about Houston that this one blog could never cover.

Here’s a snapshot view of statistics on the Houston housing market through September 2011:

The top ten price classes that sold in Houston year-to-date:

In reviewing the table above over the course of this year, the good news is that each of these price classes have a lower # of months of inventory than has been seen over the prior months.  Inventory in Houston is certainly trending in the right direction.

The Paradox of Price Class Demand Year-to-Date:

The table above depicts the top ten selling price classes year-to-date.  Paradoxically, these price classes [excepting $300,000-$399,999] have all seen declines over last year, whereas price classes below $80,000 and above $500,000 have experienced double digit increases in sales over last year.  When the two extreme price classes see double-digit increases, the overall average sales is not a true reflection of the current state of the market.  There is more validity in the median, which is up year-to-date by 1%.  In these troubling economic times we live in, a 1% increase in median home sale prices is a statistic every market in the nation would be happy to have.  We are fortunate to live in Houston where it’s all good!

Data compiled by the Houston Association of Realtors® and the Real Estate Center of Texas A & M University and composed by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®.

Here is a snapshot view of activity through August 2011:

What price ranges are selling in Houston?  Below you will find a table of the hottest selling price ranges.  It is also interesting to note that all homes priced $600,000 and up have experienced double-digit increases in sales since last year, except for homes priced $900,000-$999,999, a 9% increase.  Although all sales over $600,000 represent only 4.47% of all sales in Houston year-to-date, these sales have had a major impact on increasing  the average sales price of Houston overall.  Median sales price is a better barometer of the true state of the market.

The Good News in Real Estate for Houston:

• According to the U.S. Census Bureau, Houston-Sugar Land-Baytown had $4.17 billion in new residential projects in 2010, more than any other U.S. city.  Houston is among the nation’s strongest when it comes to residential construction activity.
• Texas jobs created from July 2010 to July 2011 accounted for 20.5 percent of total new nonfarm jobs in the United States, according to the Real Estate Center’s latest Monthly Review of the Texas Economy.
• During that period, Texas gained 278,100 nonfarm jobs, an annual growth rate of 2.7 percent compared with 1 percent for the nation.
• The state’s private sector added 292,700 jobs, an annual growth rate of 3.4 percent compared with 1.7 percent for the nation.

So, despite the national news – if you live in Houston, you are in the best place to own a home.

Statistics [unless otherwise noted] compiled by the Houston Association of Realtors Information Systems and the Real Estate Center at Texas A & M and written by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors.

Here’s a snapshot of the Houston single-family market:

For information on specific areas of Houston, click here.

For a glimpse of the Houston Hotness Index by area, click here.

To search for homes in Houston via your smartphone, text HHS to 87778 and follow the response link to download the app.

Information provided by the Houston Association of Realtors® Information Services and the Real Estate Center at Texas A & M University.  Written by Toni Nelson, Director of  Strategic Initiatives for Prudential Gary Greene, Realtors®.

Houston’s economy is now back to prerecession levels, according to the Federal Reserve Bank of Dallas, and an “On Numbers” study of new data from the U.S. Bureau of Labor Statistics ranks Houston number one in retail job growth, with 4,100 retail jobs added since 2008.

Also, according to estimates released by the Texas Workforce Commission, Houston gained 45,000 jobs from May 2010 to May 2011.

The majority of Houston retail leasing activity is largely represented within the food and services industries, while grocery-anchored centers perform well because of their ability to attract significant amounts of consumer traffic.

Retailers continue to focus on the historically fast-growing, master-planned suburban areas and the high-income Inner Loop area. According to Metrostudy’s quarterly statistics, the most recently reported top five master-planned communities were Cinco Ranch (770 home starts), The Woodlands (756), Telfair (379), Bridgeland (287) and Sienna Plantation (259).

The Houston Real Estate Market Responds to Upbeat Economic Outlook.

The most recent real estate statistics compiled by the Houston Association of Realtors® indicate June single-family home sales were the first positive sign of recovery.  The Houston area experienced 5,571 homes sales, a 1% increase over June 2010.  Dollar volume was 4% higher and totalled $1,273,809,150 for the month.  The average sales price is currently $228,650 and that’s 4% more than found last year.  The median sales price for June registered at $161,000 – a 2% increase. 

The most fortunate news of all for June came in the “contracts written” category.  Contracts written represent current buyer demand and future home closings. They were 21% higher than last year.  There were 3,245 contracts written in the month of June.  This double digit increase is for certain, artificially high, as it is being compared to last years’ drop in buyer demand immediately following  the expiration of the 2010 Homebuyers Tax Credit.  

The second most positive news about June came in the area of active listings.  There has been a 5% decrease in homes on the market since last year.  Active listings currently total  32,970.   Falling inventory, if even ever so slight helps keep home values stable and/or rising and that’s good news for homeowners.

Stay tuned for next months’ update on the Houston market. 

Source: Texas Real Estate Center and Houston Association of Realtors® Real Estate Information Services.

The Houston real estate market is currently being compared to last years’ economic stimulus incentive – the Homebuyer Tax Credit. Last year, the tax credit pulled buyer demand forward.  When the tax credit deadline for being “under contract” expired, and closings were completed circa July 15^th, buyer demand declined.   This year’s market is functioning under the normal market incentives found in homeownership – mortgage interest rate deduction, building equity and currently, low interest rates. 

Houston Housing as it stands currently. 

Now is a great time to buy real estate in Houston.  Interest rates are still low, homes are well-priced and inventory is plentiful.  These assets never stay the same for long.  The single-family sales May YTD closed out at 20,343 or 7% fewer homes than last year. It has exceeded the 2010 May YTD in average sales price by 3% and is 8% above the number of homes on the market last year. 

Houston has experienced 15,146 contracts written year-to-date and is up from this time last year by 2%. This indicates the market is slowly returning to normal as just last month, contracts written were down by 2%. Contracts written are contracts scheduled to close in the future and indicate current buyer demand.  

Houston Home Values Are Likely to Hold

Houstons’ average sales price is up 3% year-to-date; yet median sales price [where half the homes sell above and half sell below the midpoint] is flat. Inventory has remained the same since last month and actually declined 2% from February to March and then 2% again from April to May.  This indicates no additional inventory has crept into the market that would inordinately hold housing values down.

The Price Class Spectrum Impact

 One definitive change in the Houston real estate market over last year has been buyer demand by price class.  Homes priced between $80,000 – $299,999 are selling fewer units than last year and in many cases are experiencing double-digit declines.  Yet homes below $80,000 and above $500,000 [both extreme ends of the price class spectrum] are experiencing increases in buyer demand over last year.

At the high end of the price class spectrum, most notable of all price class sales increases is the

• $700,000-$799,999 range which has experienced a 37% increase over last year. 
• The second highest demand increase [29%] has been in the $900,000-$999,000 range and
• Homes priced $1 million and over are up 9% from 2010.

 The Houston overall market is so large, it rarely reflects the same trends as a submarket area located within its boundaries.  Some areas are shining brightly while others are not as lustrous.  For a breakdown of activity by area, CLICK HERE.

To see the hottest selling geographical areas in Houston, CLICK HERE.

To search for homes by price range, map and/or even foreclosures, go to www.GaryGreene.com.

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®

And according to Mike Hassler of CB Richard Ellis, the historic Texaco Building at 1111 Rusk is being sold for redevelopment as residences.

Other buildings in play include the 1.7 million-sf Wells Fargo Plaza at 1000 Louisiana, the KBR Tower at 601 Jefferson, Travis Tower at 1300 Main, and Cullen Center at 500 Jefferson.

The Houston real estate market is currently being compared with the market last year, which was part of the economic stimulus – the Homebuyer Tax Credit. As a result, the market doesn’t look as robust as it will be.  Last year, the tax credit pulled buyer demand forward.  When the tax credit deadline for being “under contract” expired, and closings were completed, buyer demand went south.   This year’s market is functioning under normal market incentives found in homeownership – mortgage interest rate deduction, building equity and currently, low interest rates.  Below is a refreshing picture of how the Houston housing market will fare in the future based on its strong job base.

Credit goes to the Greater Houston Partnership Research Department for compiling statistics on Houston’s national ranking of Fortune 500 companies:

“Twenty-three companies on the 2011 Fortune 500 list are headquartered in the Houston MSA based on the rankings released today [5/5/2011] by Fortune magazine. Houston ranks third among areas in Fortune 500 headquarters, behind New York (74) and Chicago (27), and ahead of Los Angeles (21), Dallas-Fort Worth (20), and Minneapolis-St. Paul (19). Many other Fortune 500 companies maintain U.S. administrative headquarters in Houston.

Targa Resources is new to the Houston list. This independent midstream energy company landed at #416 on the 2011 list with $5.5 billion in revenues.

The biggest movers are Frontier Oil moving up from #488 ($4.2 billion) in 2010 to #389 ($5.9 billion) in 2011, Baker Hughes from #243 ($9.7 billion) to #170 ($14.4 billion) and Apache from #271 ($8.6 billion) to #206 ($12.1 billion).

Three companies fell off the list. Continental Airlines merged with United Airlines, and the newly formed company is located in Chicago. Smith International was acquired by Schlumberger in 2010. FMC Technologies was just short of making the cutoff with revenues of $4.1 billion while the #500 company made $4.4 billion in revenues.

How lucky we are as Houstonians to have the most Fortune 500 companies in the state of Texas.  Not only do these companies provide good paying jobs but also spawn auxiliary businesses to service them.  Real estate and housing values are a benefactor of these employers and all entrepreneurs in Houston that create jobs.

Houston Housing as it stands currently.

 Now is a great time to buy real estate in Houston.  Interest rates are still low, homes are well-priced and inventory is plentiful.  These assets never stay the same for long.  What investor would buy an asset when it’s at its peak price?

 The single-family sales April YTD closed out at 15,268 or 5% fewer homes than last year. It has exceeded the 2010 April YTD in average sales price by 2% and is 10% above the number of homes on the market last year. 

Houston has experienced 11,728 contracts written year-to-date and is down 6% from this time last year when the tax incentive flurry was at its peak. Contracts written are contracts scheduled to close in the future and indicate current buyer demand.  

Houston Home Values Are Likely to Hold

Houstons’ average sales price is up 2% year-to-date; yet median sales price [where half the homes sell above and half sell below the midpoint] is down 2%. A declining median sales price is not a trend likely to continue.  Inventory has remained the same since last month and actually declined 2% from February to March.  This indicates no additional inventory has crept into the market that would inordinately hold housing values down.

The Price Class Spectrum Impact

One definitive change in the Houston real estate market over last year has been buyer demand by price class.  Homes priced $80,000 – $299,999 are selling fewer units than last year and in many cases are experiencing double-digit declines.  Yet homes below $80,000 and above $500,000 [both extreme ends of the price class sprectrum] are experiencing increases in buyer demand over last year.

At the high end of the price class spectrum, most notable of all price class sales increases is the

• $700,000-$799,999 range which has experienced a 42% increase over last year. 
• The second highest demand increase [23%] has been in the $900,000-$999,000 range and
• Homes priced $1 million and over are up 10% from 2010.

All sales through April year-to-date priced $500,000 and above represent only 6% of the total units sold in Houston, and indeed, the hottest selling price classes in Houston listed below still reflect the most buyer demand in the mid-range spectrum price classes.

What home price classes were the hottest selling in Houston YTD through 4/ 2011? 

As you can see from the Top Ten Selling Price Classes in Houston for 2011, homes priced from $70,000-$399,000 represent the greatest amount of buyer demand even though sales are down from last year. These price classes represent 55% of all sales that have occurred in Houston year-to-date.

The Houston overall market is so large and rarely reflects the same trends as a submarket area located within its boundaries.  Some areas are shining brightly while others are not as lustrous.  For a breakdown of activity by area with a map, click here.

To see the hottest selling geographical areas in Houston, click here. To search for homes by price range, map and/or even foreclosures, click here.

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®