The Brookings Institute ranked Houston the #1 housing market in the nation according to an article in the Dallas Morning News,” the Brookings researchers make these claims based on the Federal Housing Finance Agency’s quarterly house price index, which tracks values of homes mortgaged by Fannie Mae and Freddie Mac.” To get the full story, click here…
While the national news paints a bleak economic outlook, news about Houston’s economic future continues to look positive. Most recently, the 2014 completion of the Panama Canal is predicted to triple freight tonnage at the Port of Houston, according to Moody’s Economy.com. In addition, the Canal’s expansion will make way for larger vessels that will increase not only cargo traffic along the Houston Ship Channel, but also the need for improved logistics and rail.
When it comes to housing, according to Mike Inselmann, President of MetroStudy, “Houston still ranks as the nation’s top home building market, from March 2008 to March 2009, when builders started 25,502 homes and closed 28,326.”
Good news in hand, with every month that passes in 2009, the market indicators improve in comparison to the previous months’. The table below shows the difference between the market experienced in February YTD 2009 and June.
YTD 2009 and all of the metrics have improved this year. The only metric that has continued to decline is active listings. A decline in active listings is very good news for market stability, especially during the high demand summer months.
|
Houston Market Improvement Comparison 2009 |
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|
Market Indicator |
February ‘09 |
June ‘09 |
% Change |
|
# units sold |
-24% |
-20% |
+4% |
|
Dollar volume sold |
-33% |
-24% |
+9% |
|
Average Sales Price |
-12% |
-6% |
+6% |
|
Median Sales Price |
-8% |
-2% |
+6% |
|
# of Pending Sales |
-23% |
-21% |
+2% |
|
Active Listings |
-20% |
-22% |
-2% |
The current market indicators for Houston overall are as follows:
- Sales are down from June YTD 2008 by 20% with 24,994 single-family homes.
- Dollar volume sold is down from June YTD 2008 by 24% with $4,946,350,671.
- Average sales price is currently $197,902, down by 6%
- Median sales price is $149,500, down by 2% [ median is the mid-point where half of the homes sold above and half below.
- # of pending sales are 18,389 and that represents 21% fewer than found last year.
- Active listings, a metric that is good if on a decline, are currently 27,826 or 22% less than last year. This is also a metric that is the exact opposite heard frequently in the national news.
While these are not upbeat statistics, they are very upbeat in comparison to California, Arizona, Nevada and Florida, where foreclosures and rising inventory have left little hope of a bounce back any time soon. Houston homeowners are very fortunate to live in the best housing market in the nation.
What home prices are the hottest selling in Houston right now? The following table displays by price class the hottest selling price ranges in Houston in 2009:
|
Top Ten Selling Price Classes Houston Single-Family Real Estate June YTD 2009 |
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|
Price Class |
# of Sales Year to Date |
Active Listings |
Months of Inventory |
|
1. $200,000-$249,999 |
2,522 |
2,811 |
6.4 |
|
2. $300,000-$399,999 |
1,720 |
2,764 |
8.9 |
|
3. $250,000-$299,999 |
1,699 |
2,399 |
8.2 |
|
4. $120,000-$129,999 |
1,360 |
1,328 |
5.3 |
|
5. $130,000-$139,999 |
1,357 |
1,209 |
5.0 |
|
6. $110,000-$119,000 |
1,265 |
1,293 |
5.6 |
|
7. $140,000-$149,999 |
1,164 |
1,198 |
5.8 |
|
8. $150,000-$159,999 |
1,138 |
1,091 |
5.4 |
|
9. $90,000-$99,999 |
1,125 |
1,092 |
5.7 |
|
10.$100,000-$109,999 |
1,085 |
833 |
4.3 |
As you can see, the top 10 selling price classes in Houston range from a low of $90,000 to a high of $399,000, and therein lies the largest demand for single-family homes.
Houston buyers can capitalize on an $8,000 tax credit for first-time home buyers and use as a down payment under certain circumstances. To find out more about the qualifications for an $8,000 tax credit, go to www.GaryGreene.com and select an agent for advice and cousel. Prudential Gary Greene, Realtors® anticipates that the 2009 summer sales will far exceed the dismal first quarter, which was wrought with economic uncertainty and a barrage of bad news.
More than any other factors, Houston has suffered from a loss of confidence and uncertainty of the future, especially during the months following Hurricane Ike. The market improvement comparison table above indicates that our market is recovering from these psychological factors and moving toward more normal market conditions.
19 months into recession and it seems to me that we’re still light years from recovery. Granted, Bernanke and the big boys are saying the economy is getting better but it sure doesn’t feel that way on main street.
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