Houston’s current inventory is down 21% from this time last year, with 27,857 single-family homes on the market. Even more interesting, current inventory for April is down from last month by 1% and with each month that passes in 2009, the percentage decline in home sales from the year before assuages. This is contrary to the national scene depicting an overabundance of homes on the market and record foreclosures.
Over the last year, Houston home price classes have changed in hotness. Last year, homes on the market priced $900,000 and above experienced a 21% increase in demand. All other price classes’ year-to-date April 2008 experienced a decline in demand in comparison to 2007 except for homes priced $79,999 and below. The year 2008 was a year of price demand at the lowest and highest extremities of the price class spectrum. In addition, the 21% increase in demand in the $900,000 and up price class last year skewed the statistics to reflect a higher average sales price that did not reflect reality. Today, homes priced $900,000-$999,999 are down 31% and homes priced over $1,000,000 are down 44%. These factors help more clearly explain how average sales prices are highly affected by extremes, and the median sales price is the best barometer for a markets health. The median price is the mid point price in the market where half the homes sold above and half sold below. It is not affected by price ranges at the extremes of the price class spectrum.
The graph depicted below displays the top ten hottest selling home prices for April year-to-date 2009 based on number of home sales by price class.
The Top Ten Hottest Selling Price Classes of single-family homes in Houston year-to-date are:
|
Price Class |
Sales Year to Date |
Active Listings |
Months of Inventory |
|
1. $200,000-$249,999 |
1,377 |
2,700 |
6.1 |
|
2. $250,000-$299,999 |
918 |
2,303 |
7.7 |
|
3. $300,000-399,999 |
909 |
2,767 |
8.4 |
|
4. $120,000-129,999 |
809 |
1,199 |
4.7 |
|
5. $110,000-119,999 |
762 |
1,253 |
5.2 |
|
6. $100,000-109,999 |
693 |
789 |
3.9 |
|
7. $90,000-$99,999 |
684 |
1,066 |
5.5 |
|
8. $140,000-$149,999 |
682 |
1,098 |
5.1 |
|
9. $80,000-$89,999 |
679 |
886 |
4.4 |
|
10. $150,000-$159,999 |
671 |
1,096 |
5.1 |
As you can see, most of the top 10 selling price classes have healthy months of inventory and many will enjoy single digit appreciation. Also, it can be observed in the graph that the higher the price class, the higher the number of listings and the higher the months of inventory. Price classes that made the above Top Ten Selling Price Classes April year-to-date 2009 will most likely continue to see a healthy buyer demand throughout the spring and summer months.
In comparison to April year-to-date last year, single family homes are experiencing the following:
• Sales are down 21% with 14,799 sales
• Dollar volume is down 28% with $2,735,391,577
• Average sales price is $184,836 or 9% lower than last year, up by 1% from last month.
• Median sales price is $140,500 or 6% lower than last year, up by 1% from last month.
• Pending sales are 11,969 or 22% lower than last year
• Active listings are 27,857 or 21% lower than last year.
There are two things to keep in mind when reviewing the above April YTD Comparison:
1. We are comparing this year to the third best year in Houston residential history.
2. Every metric noted above is an improvement from February year-to-date, so with each month that passes, Houston real estate is improving.
Houston home buyers can capitalize on an $8,000 tax credit for first-time home buyers through the economic stimulus package, and interest rates are at record lows. These factors together with Houston’s positive employment base and affordable housing should stimulate an increase in home sales in the months to come. Prudential Gary Greene, Realtors® experienced a record sales month in April – one of the best since Hurricane Ike. As the economy continues to recover and people begin to feel more confident about the future and a greater sense of job security, Houston real estate will rise to the occasion
