Houston was named by Fast Company Magazine as one of the 13 most creative cities in the world.  To view the full article and find out why, go to:

13 Most Creative Cities in the World

 

Another milestone for Houston in the real estate arena came from the Texas A & M Real Estate Center quoting Mike Inselmann, President of MetroStudy about new home sales in Houston: ”

“Despite sharp cuts in new home production, Houston still ranks as the nation’s top home-building market from March 2008 to March 2009, when builders started 22,502 homes and closed 28,326.”

Houstonians are fortunate to be living in a city where the number of  single-family homes on the market [inventory] has declined more than the number of home sales or for that matter, the amount of buyer-demand.

In a nutshell, May YTD single family home sales in Houston according to the Houston Multiple Listing Service:

1. Sales have reached 19,597 through May 2009, a 21% decline over year-to-date 2008.
2. Dollar volume sold YTD as recorded in Houston Real Estate Informaton Services is $3,754,771,410, a 26% drop in volume found year-to-date in 2008.
3. The average sales price of Houston single-family homes is $191,599 or 7% less than last year.
4. The median price is $145,000 and that is only 3% less than last year.  Median is the mid-point price where half the homes sold above and half sold below.
5. Pending sales recorded year-to-date are 15,072 or down by 22%.
6. The most positive note in the market is that new listings are down by 24%, a decline greater than sales and also key to retaining home value.  Active listings reached 27,769 and that figure is down by 22% from this time last year.

All real estate is local and with the land mass of Houston, one of the nation’s largest cities geographically and in population, the overall market appears much different than subsets of the whole.  Some areas of Houston are in an appreciating mode, while others are not as favorable.

The top 5 residential areas ranked by hotness for May 2009 are:

1. Katy - the south area with a hotness ratio of 22.5%, meaning 22.5% of all listings in the area received a contract in the month of May.
2. Pasadena area – hotness ratio of 17.9%
3. Fort Bend West – hotness ratio of 17.3%
4. Near North - hotness ratio of 16.5%
5. Southeast – hotness ratio of 16.3%

As you can see, these areas as well as others in Houston are experiencing the highest buyer demand in the city and differ quite substantially from the overall market expressed above.  For a complete list of areas ranked by hotness, please follow the link:   

Houston Hotness Index for May YTD 2009                                                  

 

For a complete review of the market by area, please visit:

Houston Area Market Update for May 2009

 

One of the interesting anomalies found in Houston real estate over the last year has been the change in buyer demand by price class.  Below are the hottest selling price classes for Houston real estate year-to-date 2009 and differ substantially from last year:

Price Class	Sales Year to Date	Active Listings	Months of Inventory
1. $200,000-$249,999	1,899	2,722	6.2
2. $250,000-$299,999	1,277	2,372	8
3. $300,000-$399,999	1,269	2,728	8.6
4. $130,000-$139,999	1,094	1,158	4.6
5. $120,000-$129,999	1,069	1,314	5.1
6. $110,000-$119,999	981	1,243	5.3
7. $90,000-$99,999	913	1,015	5.3
8. $140,000-$149,999	910	1,1136	5.4
9. $150,000-$159,999	902	1,118	5.4
10. $100,000-$109,999	886	802	4.0

It appears that Houston has returned to its normal price class ranges that have been in demand historically.  Last year, the increases in homes sold over $1 million distorted overall average sales price and dollar volume  making the market appear healthier in appreciation than actual.  Hence, the average sales price and dollar volume declines seen this year are a comparison to last year making the market appear less robust than actual.

As the summer approaches, Houston real estate always surges ahead.  With interest rates at an all time low, the First-Time home buyer tax credit as a stimulus and one of the most positive economic climates in America, Houston will enjoy one of the best real estate markets the nation has to offer.

Tags: Houston Home sales, Houston Real Estate Market