Houston real estate sales in December 2009 experienced:

1. A 2% decline in single-family homes or a total of 4,456 sales.
2. A 13% increase in dollar volume sales for a total of $976,817,584. Dollar volume was lower than last December yet higher than November’s $899,046,012.
3. A 15% increase in average sales price which is currently $219,214.
4. Days on the Market [DOM] – the time it takes on average to sell a single-family home in Houston declined 12% and is currently 83 DOM.
5. Pending sales dropped 21% for a total of 2,267 contracts written.
6. Current listings are down 6% for a total single-family listing count of 26,086.

 While most of these statistics look flat in comparison to November 2009, there were two reasons for last November’s real estate rally.

1.      The IRS First-Time Home Buyer Tax Credit expired on December 1.  Although this legislation was extended and expanded November 7, 2009, the original tax credit created a flurry of buying activity that culminated in closings in November. 

2.      November 2008 was a very somber month in real estate as Houston was recovering from the aftermath of Hurricane Ike.  Also, November 2009 did not experience the trauma of a hurricane or the psychological recession  of the mortgage meltdown and financial crisis – all found in November 2008. 

Houston real estate sales December YTD 2009:

 

For the second and final time this year, single-family home sales have moved from double-digit declines YTD to single-digit declines of 7%. Thus, the Houston real estate market concluded 2009 by continuing to move in the right direction and experiencing improvement once again in December.

Houston Market Improvement Comparison 2009 of Single-Family Homes
Market Indicator	February ‘09	June ‘09	Dec. ‘09	% Improved from June ‘09
# units sold	-24%	-20%	-7%	+185%
Dollar volume sold	-33%	-24%	-9%	+167%
Average Sales Price	-12%	-6%	-2%	+300%
Median Sales Price	-8%	-2%	+1%	+100%
# of Pending Sales	-23%	-21%	-14%	+50%
Active Listings	-20%	-22%	-19%	-15.7%

 

 Although Houston was not out of negative territory as the year came to an end, what a remarkable recovery and tremendous strides it made with every month that passed in 2009.

Houston 2009 – The Year in Review::

 

• Sales YTD are 54,415 single-family homes, an 7% decline since YTD 2008.
• Dollar volume sold is down from December YTD 2008 by 9% with $11,080,284,138.
• Average sales price is currently $203,626, down by 2%.
• Median sales price is $153,000, and 1% above last year [half of the homes sold above and half below this midpoint range.
• # of contracts written [pending] is 35,672 and that represents 14% fewer than found last year.
• Active listings, a metric that is good if on a decline, are currently 27,574 or 19% less than last year.

 What’s in store for Houston real estate in 2010?

The November 7^th  legistlative extension and expansion of the 2009-2010 Homebuyer IRS Tax Credit should stimulate home sales, more so than the original tax credit.  The expansion is not limited to first-time homebuyers and increased the income limits to $225,000.  For more information on the IRS Tax Credit, http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit    

The IRS Tax Credit should help bring Houston back to a more normal market sooner than it would have on its own. 

Houston’s diverse economy of energy, health and the Port of Houston should see a resurgence in 2010.  Many economists predict Houston to return to pre-recession levels in 2011.

What home price classes were the hottest selling in Houston in 2009? 

The following table indicates by price class the hottest selling price ranges in Houston in 2009:

Top Ten Selling Price Classes Houston Single-Family Real Estate The Year 2009
Price Class	Sales Year to Date	Active Listings	Months of Inventory
1. $200,000-$249,999	5,605	2,530	5.4
2  $300,000-$399,999	3,910	2,309	7.1
3. $250,000-$299,999	3,846	2,080	6.5
4. $130,000-$139,999	3,118	1,173	4.5
5. $120,000-$129,999	3,109	1,330	5.1
6. $110,000-$119,999	2,763	1,285	5.6
7. $140,000-$149,999	2,640	1,175	5.3
8. $150,000-$159,999	2,600	1,063	4.9
9. $90,000-$99,999	2,453	1,175	5.7
10.$160,000-$169,999	2,346	999	5.1

 As you can see from the Top Ten Selling Price Classes in Houston for 2009, hot selling prices ranged between $90,000-$399,000. This completes the Top Ten Selling Price Classes in Houston single-family demand for homes in Houston for 2009.  These price classes are expected to be just as hot in Houston in 2010 as they were in 2009, and more are expected to sell.  Why?  The 2010 IRS Home Buyer Tax Credit expanded to include more of these price classes [due to expanded income limits] than found in the original bill.

 

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

 

Date 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®

 

 

 

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