July single-family home sales declined by 25% from July 2009 and experienced 4,297 home sales.  This dramatic decline from June to July indicates that the 2010 Tax Credit, [eligibility required a fully executed contract in place by April 30^th] brought home buying demand forward that may otherwise occur during the summer months. 

Paradoxically, immediately following the tax credit expiration, interest rates on mortgages declined dramatically.   Buying a home today, rather than before the tax credit expiration, will save a buyer thousands of dollars on a lower interest rate.  Savings over the life of the loan actually dwarfs the savings buyers received from a Tax Credit.  This is good news for anyone in the Houston area looking for a home.  There is a good supply of homes on the market and the interest rates are lower than have been experienced in decades.

Houston – one of the best employment performances in the nation.

According to the U.S. Bureau of Labor Statistics, Houston had the strongest employment gains in the nation during the past 5 years.  Houston added 129,000 new private sector jobs between June 2005 and June 2010.  At the same time, Houston suffered job losses, yet the Bayou City has added 31,000 jobs since January of this year.  Houston is far ahead of the rest of the nation in terms of jobs and job creation and the region appears to be climbing its way back to normal market conditions.  There is a direct correlation between jobs and the real estate market; as jobs increase, so does the demand for real estate.  

A snapshot view of metrics for the month and year-to-date can be found below.  July was a sluggish month in comparison to July 2009, yet year-to-date the statistics indicate this year is a stronger real estate year than 2009.

Here is a table overview of the month and year-to-date:

Greater Houston MLS [HRIS] Single-Family Residential Real Estate
	July 2010		July 2010 YTD
Metric	Amount	% Change From 6/09	Amount	% Change From 7/09 YTD
Sales	4,297	-25%	31,624	3%
Dollar Volume Sold	$965,810,908	-23%	$6,638,644,482	7%
Contracts written	2,762	-17%	20,370	-6%
# of Listings	34,625	24%	31,301	12%
Average Sales Price	$224,764	3%	$209,924	4%
Median Sales Price	$160,880	-1%	$153,000	1%

Sellers should stay tuned to their local market

In the last few months, Houston has experienced an inventory creep where more homes are coming on the market without a corresponding increase in buyer demand. While this gives buyers more to choose from, sellers should review their local market for what’s on the market versus how many homes are selling in various price ranges.  Agents at Prudential Gary Greene, Realtors® have a system that automatically generates the aforementioned market stats as well as current online buyer demand.  It enables a seller to analyze current sales and inventory but also how online buyer demand is trending.  The program e-mails each seller a daily update so he/she is aware of their current market’s local activity.  With information on hand, sellers can make quick adjustments to their marketing strategy that keep their home favorably positioned over the competition.  Contact any of our agents under the “Find an Agent” tab on www.GaryGreene.com to learn more about our Online Sellers’ Advantage program.

What home price classes are the hottest selling in Houston through July YTD? 

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

Ten Hottest Selling Price Classes Houston Single-Family Real Estate June YTD 2010
Price Class	Sales YTD	Active Listings	Months of Inventory
1. $200,000-$249,999	3,137	3,719	8.0
2  $300,000-$399,999	2,297	3,245	9.6
3. $250,000-$299,999	2,272	2,874	8.7
4. $120,000-$129,999	1,826	1,887	7.0
5. $130,000-$139,999	1,705	1,738	6.6
6. $110,000-$119,999	1,672	1,743	7.2
7. $140,000-$149,999	1,488	1,734	7.8
8. $150,000-$159,999	1,445	1,643	7.6
9. $90,000-$99,999	1,424	1,497	7.2
10$80,000-$89,999	1,418	1,240	6.3

As you can see from the table above, Houston’s hottest selling home prices range from $80,000-$399,999.  What is also interesting to note is that the months of inventory, on even the hottest selling price classes has risen slightly every month since the Tax Credit expiration.  This is a strong indicator that sellers should stay tuned to activity in their market area, and consider price adjustments to stay competitive.

The High-End Market is Still Hot.

The 2010 paradigm in Houston’s hottest selling home prices is the high-end market.  Most price classes $80,000 and above have experienced single-digit increases in sales over last year.  As you can see from the table below, most price classes over $500,000 have experienced double-digit increases in sales over last year. Contrary to norm, the higher the price class in 2010, the higher the percentage increase in sales, in most categories.  Homes priced $900,000-$999,999 are up in sales by 33% over last year, the highest increase in sales of any price class.  Homes priced $1,000,000 or more are up 15% over last year.  This represents an incredible comeback from a gloomy high-end market in 2009.

Highest Price Class Increase Year-to-Date

1.      $900,000-$999,999 up 33% year-to-date

2.      $600,000-$699,999 up 22% year-to-date

3.      $400,000-$499,999 up 22% year-to-date

4.      $500,000-$599,999 up 17% year-to-date

5.      $1,000,000 or more up 15% year-to-date

6.      $800,000-$899,999 up 6% year-to-date

The Low-End Market is Not so Hot.

The other new 2010 paradigm in Houston’s hottest selling prices is the low-end market.  The majority of price classes $70,000 and below are experiencing single to double-digit declines.

Keep in mind that these statistics are sweeping generalities of a large major metropolitan market. The Houston Metropolitan Statistical area covers over 10,000 square miles. 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 of the area, go to http://garygreene.mediaroom.com/index.php?s=38&cat=14.

View the Houston Hotness Index for July 2010 at http://media.garygreene.com/index.php?s=38&item=221

This table displays the hottest selling areas in Houston.  The hotness ratio is the current months “buyer demand” or pending sales as a percent of active listings.

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

It will be interesting to see what the last half of 2010 has in store for the real estate market.  No matter what, the Houston area will remain one of the top real estate markets in the nation and our economy is positioned to withstand the winds of change far better than any other region in the United States.

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®

Houston – Best Homebuying Opportunity is Now.

Who would have known?  Immediately following the buying flurry up until the April 30^th  Tax Credit deadline, interest rates dropped dramatically in May and June, giving home buyers that were too late for the tax credit thousands of saved dollars over the life of a loan.  These savings dwarfed the tax credit incentive.  The Houston real estate market now has the best home buying opportunity due to lower interest rates and more homes available from which to choose.  The 24% higher inventory is also a motivator for sellers’ to become more competitive in their asking price. 

Many economists agree that current positive economic indicators may cause the Fed to raise interest rates in the not too distant future.  Clearly, there is a window of opportunity savvy home buyers will recognize before interest rates change to a lesser advantage.

Here is a table overview of the month and year-to-date:

What home price classes are the hottest selling in Houston through June YTD? 

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

 The High-End Market is Still Hot.

The 2010 paradigm in Houston’s hottest selling home prices is the high-end market.  Most, but not all, price classes $80,000 and above have experienced double-digit increases in sales over last year. Contrary to norm, the higher the price class, the higher the percentage increase in sales, in most categories.  Homes priced $900,000-$999,999 are up in sales by 64% over last year, the highest increase in sales of any price class.  Homes priced $1,000,000 or more are up 23% over last year.  This represents an incredible comeback from a gloomy high-end market in 2009.

Highest % Increase in Sales by Price Class Year-to-Date

1.      $900,000-$999,999 up 64% year-to-date

2.      $600,000-$699,999 up 34% year-to-date

3.      $400,000-$499,999 up 30% year-to-date

4.      $500,000-$599,999 up 28% year-to-date

5.      $800,000-$899,999 up 26% year-to-date 

The Low-End Market is Not so Hot.

The other new 2010 paradigm in Houston’s hottest selling prices is the low-end market.  The majority of price classes $70,000 and below are experiencing double-digit declines.

Keep in mind that these statistics are sweeping generalities of a large major metropolitan market. The Houston Metropolitan Statistical area covers over 10,000 square miles. 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 of the area, go to http://garygreene.mediaroom.com/index.php?s=38&cat=14.

What about Houston’s future real estate prospects?

The short version is that Houston recorded 2.55 million payroll jobs in May 2009, more than the job counts of 29 U.S. states, including Arizona, Colorado and Alabama.  Jobs are the biggest driver of real estate sales in any community. While there is uncertainty out there now with the future of NASA  and the impact the B.P. oil spill will have on Houston, long-term future job prospects for Houston are one of the brightest in the nation.  For a more detailed analysis of Houston’s future in real estate, go to www.GaryGreene.com/blog and read the April 20^th article entitled: Houston, Best Place to Buy Real Estate Right Now.

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®

As you can see from the table above, Houston’s hottest selling home prices range from $80,000-$399,999.  What is also interesting to note is that the months of inventory, on even the hottest selling price classes has risen slightly from last month. This is a strong indicator that sellers should stay tuned to activity in their market area, and consider price adjustments to stay competitive.

This table is a depiction of one of the healthiest markets in the United States.

Houston single-family home sales in May increased by 19% with 5,693 homes sold.  While that is a very healthy increase over May of last year, contracts written tell an even more significant story.  There were 2,474 contracts written in May, which is down 20% from last year.  This indicates that the 2010 Tax Credit, [eligibility required a fully executed contract in place by April 30^th]  brought home buying demand forward that may otherwise occur in May and June.  Year-to-date, the Houston real estate market is far ahead of last year - the only exception being a 1% decline in contracts written. 

Houston – Best Homebuying Opportunity is Now.

Who would have known?  Immediately following the buying flurry before the April 30^th deadline, interest rates dropped dramatically in May, giving home buyers that were too late for the tax credit thousands of saved dollars over the life of a loan and dwarfing the tax credit incentive.  The Houston real estate market now has the best home buying opportunity not only due to lower interest rates but also, as you can see in the table below, more homes available from which to choose.  The 17% higher inventory is also a motivator for sellers’ to become more competitive in their asking price. 

Many economists agree that current positive economic indicators may cause the Fed to raise interest rates in the not too distant future.  Clearly, there is a window of opportunity in the market that savvy home buyers will capitalize on before it is too late.

Here is a table overview of the month and year-to-date:

Greater Houston MLS [HRIS] Single-Family Residential Real Estate
	May 2010		May 2010 YTD
Metric	Amount	% Change From 5/09	Amount	% Change From 5/09 YTD
Sales	5,693	19%	21,750	11%
Dollar Volume Sold	$1,195,074,560	18%	$4,463,633,628	19%
Contracts written	2,474	-20%	14,922	-1%
# of Listings	32,226	17%	29,758	7%
Average Sales Price	$209,920	-1%	$205,225	7%
Median Sales Price	$154,780	-1%	$150,070	3%

Contracts written for May 2010 indicate that closings next month most likely will decline.  Contracts written represent current buyer demand and is a precursor of closings that will occur in the next month or so. With fewer contracts written in the pipeline, fewer closings will occur in the future.

What home price classes are the hottest selling in Houston through May YTD? 

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

Ten Hottest Selling Price Classes Houston Single-Family Real Estate May YTD 2010
Price Class	Sales Year to Date	Active Listings	Months of Inventory
1. $200,000-$249,999	2,147	3,401	7.0
2  $250,000-$299,999	1,561	2,640	7.7
3. $300,000-$399,999	1,487	3,072	8.9
4. $120,000-$129,999	1,297	1,654	5.9
5. $130,000-$139,999	1,221	1,597	5.9
6. $110,000-$119,999	1,160	1,538	6.3
7. $140,000-$149,999	1,059	1,414	6.1
8. $150,000-$159,999	1,034	1,450	6.4
9. $90,000-$99,999	982	1,274	6.1
10$80,000-$89,999	978	1,012	5.2

As you can see from the table above, Houston’s hottest selling home prices range from $80,000-$399,999.  What is also interesting to note is that the months of inventory, on even the hottest selling price classes has risen slightly from last month. This is once more an indication that sellers should stay tuned to activity in their market area, and consider price adjustments to stay competitive.

The High-End Market is Still Hot.

The 2010 paradigm in Houston’s hottest selling home prices is the high-end market.  Most price classes $80,000 and above have experienced double-digit increases in sales over last year. Contrary to norm, the higher the price class, the higher the percentage increase in sales, in most categories.  Homes priced $900,000-$999,999 are up in sales by 43% over last year, the highest increase in sales of any price class.  Homes priced $1,000,000 or more are up 40% over last year.  This represents an incredible comeback from a gloomy high-end market in 2009.

The Low-End Market is Not so Hot.

The other new 2010 paradigm in Houston’s hottest selling prices is the low-end market.  The majority of price classes $70,000 and below are experiencing double-digit declines.

Keep in mind that these statistics are sweeping generalities of a large major metropolitan market. The Houston Metropolitan Statistical area covers over 10,000 square miles. 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 of the area, click here.

What about Houston’s future real estate prospects?

The short version is that Houston recorded 2.55 million payroll jobs in May 2009, more than the job counts of 29 U.S. states, including Arizona, Colorado and Alabama.  Jobs are the biggest driver of real estate sales in any community. While there is uncertainty out there now with the future of NASA  and the impact the B.P. oil spill will have on Houston, long-term future job prospects for Houston are one of the brightest in the nation.  For a more detailed analysis of Houston’s future in real estate, go to www.GaryGreene.com/blog and read the April 20^th article entitled: Houston, Best Place to Buy Real Estate Right Now.

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®

 Here is a table overview of the month and year-to-date:

 What a refreshing change for Houston residential real estate since last year both for the month and the year. The table also indicates that the next month may be just as healthy due to a 23% increase in contracts written in April.  This metric signifies current buyer demand and represents closings that will occur in the not too distant future.

What home price classes were the hottest selling in Houston through April YTD? 

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

  As you can see from the table above, Houston’s hottest selling home prices range from $80,000-$399,000.

The Low-End Market is Not so Hot.

The other 2010 paradigm in Houston’s hottest selling prices is the low-end market.  Homes priced $70,000 and below are experiencing double-digit declines and the lower the price class, the higher the decline.  The greatest decline in homes sales by price class in Houston is in the $19,999 price class and below. It experienced a 30% decline over last year.

Average Sales Price vs. Median Sales Price

While most home sales this year occurred in the center of the price class spectrum, the double-digit increases from the high-end skew the average sales price in Houston higher.  The median sales price is the midpoint price where half the homes sold above and half sold below.  Median sales price year-to-date [$150,000] has increased by 6% which is a healthy increase and far more representative of the Houston area than an 11% increase in average sales price.

The Houston Metropolitan Statistical area covers over 10,000 square miles. 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 of the area, go to http://garygreene.mediaroom.com/index.php?s=38&cat=14.

What about Houston’s future real estate prospects?

The short version is that Houston recorded 2.55 million payroll jobs in May 2009, more than the job counts of 29 U.S. states, including Arizona, Colorado and Alabama.  Jobs are the biggest driver of real estate sales in any community.  There has been some job attrition since that time but Houston’s future prospects are among the best in the nation.  For a more detailed analysis of Houston’s future in real estate, go to www.GaryGreene.com/blog and read the April 20^th

article entitled: Houston, Best Place to Buy Real Estate Right Now.

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®

	April 2010		April 2010 YTD
Metric	Amount	% Change From 4/09	Amount	% Change From 4/09 YTD
Sales	5,321	27%	16,019	8%
Dollar Volume Sold	$1,098,328,894	35%	$3,275,788,774	19%
Contracts written	3,893	23%	12,448	4%
# of Listings	30,186	9%	29,141	5%
Average Sales Price	$206,414	7%	$204,494	11%
Median Sales Price	$153,500	2%	$150,000	6%

What home price classes were the hottest selling in Houston through April YTD? 

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

Ten Hottest Selling Price Classes Houston Single-Family Real Estate April YTD 2010
Price Class	Sales Year to Date	Active Listings	Months of Inventory
1. $200,000-$249,999	1,585	3,137	6.5
2  $250,000-$299,999	1,138	2,529	7.5
3. $300,000-$399,999	1,087	2,894	8.5
4. $120,000-$129,999	956	1,517	5.6
5. $130,000-$139,999	885	1,429	5.4
6. $110,000-$119,999	828	1,406	6.0
7. $150,000-$159,999	752	1,370	6.1
8. $90,000-$99,999	745	1,141	5.4
9. $140,000-$149,999	734	1,334	6.0
10$80,000-$89,999	711	944	5.0

What a refreshing change for Houston residential real estate since last year both for the month and the year. The first table above indicates that the next month may be just as healthy due to a 23% increase in contracts written in April.  This metric signifies current buyer demand and represents closings that will occur some time in the future

 As you can see from the second table above, entitled TheTen Hottest Selling Price Classes in Houston April YTD 2010, the hottest selling prices range from $80,000-$399,000.

The High-End Market is Hot.

 What a refreshing change for Houston residential real estate since last year both for the month and the year. The table also indicates that the next month may be just as healthy due to a 23% increase in contracts written in April.  This metric signifies current buyer demand and represents closings that will occur in the not too distant future.

As you can see from the table above, Houston’s hottest selling home prices range from $80,000-$399,000.  

Texas and California are home to 57 Fortune 500 companies each, tops in the nation. Houston has 25 on this year’s list alone.  Last year, Texas boasted the most Fortune 500 companies within its state boundaries.

Read more on this phenomenon by clicking here.

If you want to invest in an area that has a rising population growth: 

The Institute for Regional Forecasting [IRF] predicts that 3.7 million people and 1.5 million jobs will be added to the eight-county Houston MSA over the next 25 years.  Additonally, Houston will experience a growth at 2.5 percent per year between now and 2020, increasing the population from its current 5.1 million to 7.4 million. 

At the same time, 700,000 jobs will be created in the area, according to the IRF annual long-term forecast.  By 2035, IRF estimates that the area will include four million jobs and 9.5 million people.  Houston will also continue to follow a decentralization trend, with suburban counties receiving a growing number of new jobs and population growth.  These counties have recently captured about 44 percent of all employment growth and 51 percent of all population growth.   For more on the story, click here. 

If you are looking for real estate with long term growth potential, look in the Houston MSA area.  To search for homes available in Houston and to find advice and counsel through a real estate professional, go to www.GaryGreene.com.

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!

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®

At first blush, these statistics seem strange. With the same number of homes selling as in the first quarter 2009, how do average and median sales prices of homes go up in comparison to 2009? The answer is in the price classes of homes that have closed this year.  In March, with similar experiences in January and February, home sales priced $250,000 and higher have experienced double-digit increases over 2009.  Single-digit increases occurred in the following price classes:

• $150,000-$159,999
• $140,000-$149,999
• $  90,000-$  99,999

With the above three price class exceptions, all price classes below $250,000 experienced single to double-digit price declines.

At least for First Quarter 2010, there has been a resurgence in higher end housing demand and a decline in price classes below $250,000, with the three exceptions so noted.

Most notable of all price classes is the $800,000-$899,999 range which has experienced an 85% increase over last year.  The second highest demand increase [48%] has been in the $400,000-$499,000 range and the third highest increase [46%] in demand is $500,000-$599,999.

All sales in March priced over $249,999 represented only 23% of the total MLS homes sold in Houston, however their collective impact 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, click here.

Prudential Gary Greene, Realtors® believes the housing market will pick up steam during the Spring selling season for 3 reasons:

1. The Home Buyers Tax Credit benefits both current homeowners as well as first-time home buyers.  To qualify, a binding written contract must be in place by April 30^th and the home must close by June 30^th.  To see if you qualify, click here.
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 in June.
3. It appears employment in Houston is on the rise or showing more resilience than most economists predicted.

Prudential Gary Greene, REALTORS® will join real estate professionals across the nation as part of the REALTOR® Nationwide Open House Weekend celebrated April 10 and 11 of this year. The National Association of REALTORS® encourages REALTORS® to participate in this campaign focused on increasing consumer awareness of the benefits of homeownership.  Prudential Gary Greene, Realtors® will showcase their inventory on Sunday, April 11 to draw attention to the many opportunities available in one of the best housing markets in the nation - Houston.  To view current listings and open houses, go to www.GaryGreene.com.

The Nationwide Open House Weekend will enable sellers to showcase their homes for sale and potential homebuyers to shop for a home while interest rates are low, home prices are affordable and before the April 30 deadline for the federal homebuyer tax credit.  The National Association of Realtors® will conduct a nationwide advertising campaign before the event to increase awareness, interest and traffic.

“For many people, now really is a good time to buy a home. Mortgage rates are still at historic lows,” said Toni Nelson, director of strategic initiatives for Prudential Gary Greene, Realtors®. “And first-time buyers have until April 30 to get up to an $8,000 tax credit while long-time homeowners may qualify for as much as $6,500 if they purchase their next primary residence before the deadline. The Open House weekend held in Houston on April 11 will create interest and attention among buyers and sellers.”

According to the Internal Revenue Service, buyers who wish to qualify for the tax credit must sign a contract to purchase a home on or before April 30, 2010, but they have until June 30, 2010 to close on the home. Income limitations apply and the home purchased must be used as a primary residence with a purchase price not to exceed $800,000.

Adds Nelson: “The tax credit will soon be gone.  Economists predict that home prices and interest rates will climb and with Houston’s growth predictions over the next 10 years, home prices are more likely to climb here than anywhere else.  Currently, Houston has an ample supply of homes from which to choose. So the timing of this Open House event is very important to help create awareness and also to capitalize on the tax credit while it is still attainable.”  For more information, read “Housing Shortage Ahead?” on www.GaryGreene.com/blog.

“While the tax credit has been a strong incentive for buyers, homeownership is an investment in your future offering tax benefits and long-term value over time,” said Nelson. 

There are many personal benefits to homeownership for sure; it’s the American Dream.  Few buyers know the economic impact that buying a home brings to their local community.  Economists have calculated that for every home purchase, no matter how small – an approximate $63,000 economic multiplier effect goes into the local economy.  There are also as many as 24 services used in the process of buying a home, which benefits local business.  The greatest contribution Americans can make to jump starting the economy is to buy a home. 

Prudential Gary Greene, Realtors® personally invites you to attend their Realtor® Nationwide Open House Event on April 11.  To view homes for sale or homes that will be held open, please go to www.GaryGreene.com.

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.

To search for homes or learn more about what your home is worth in todays’ market, go to www.garygreene.com.

Now comes closed sales in the first two months of 2010, and all price classes above $250,000 have experienced increases.  The two price class exceptions were the $700,000-$799,999 and $900,000-$999,999.  These two price classes are at the same level of demand as found in 2009.

What’s also unusual?  Home price classes below $250,000 have all experienced single to double digit declines in the first two months. These price classes were in highest demand this time last year.

At least for the two months of 2010, there has been resurgence in higher end housing demand and a decline in price classes below $250,000.

Most notable of all price classes is the $800,000-$899,999 range which has experienced a 93% increase over last year.  The second highest demand increase [53%] has been in the $400,000-$499,000 range and the third highest increase [50%] in demand is $1,000,000 or above.  

 Houston real estate sales February YTD 2010 experienced:

1. An 8% decline in single-family homes or a total of 5,792 sales. This is a decline which has improved from January’s 12% decline.
2. A 5% increase in dollar volume sales for a total of $1,149,747,831.  This is an increase from January’s 4% increase.
3. A 15% increase in average sales price which is currently $198,506.  In January the increase was 18%.  February may be the first month in a trend toward Houston’s move to more normal market conditions in terms of where price class demand has historically been. 
4. Days on the Market [DOM] – the time it takes on average to sell a single-family home in Houston declined 15% and is currently 82 DOM.  Hence, homes are selling faster than last year.
5. Pending sales dropped 11% [an improvement from January’s 17%] for a total of 4,981 contracts written.
6. Current listings are up 1% for a total single-family listing count of 27,978.

Prudential Gary Greene, Realtors® believes the housing market will pick up steam in March 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 30.  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 comes to a close.

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 22.15% of all sales in Houston.

What home price classes were the hottest selling in Houston through 2/ 2010? 

The following table indicates by price class the most homes that have sold year-to-date in Houston in 2010:         

 As you can see from the Top Ten Selling Price Classes in Houston for 2010 range from $80,000-$399,000. These price classes and homes priced up to $800,000 are expected to be hot in Houston at least through April 30.  Why?  The 2010 IRS Home Buyer Tax Credit expanded to include houses priced up to $800,000. 

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®