January 2011 brought new energy and hope to Houston home sales. The January metrics even indicated that future buyer demand [contracts pending] would remain in positive territory, at least for the next month.  Paradoxically, February saw a 2% drop in home sales over February last year and a 4% drop in contracts pending.  While the month represented a setback in sales, it was not enough to knock year-to-date sales out of positive territory.  Year-to-date through February, homes sales are up in Houston by 2% with 6,030 home sales; contracts pending are up by 1% with 5,040 contracts written year-to-date. Contracts written are contracts scheduled to close sometime in the near future.  When comparing this year to last year, remember that last year the 2010 IRS Tax Credit represented a huge economic stimulus to both first-time and current homeowners. There are no stimulus incentives this year.

Even though there is no economic stimulus in effect, Houstons’ average sales price is up 4% year-to-date and median sales price is even with this time last year.  Almost any city in the nation would envy Houston’s ability to retain home values and Houston has maintained its home values throughout the recession and current recovery.

As noted in the table above, there are no metrics in negative territory thus far this year.  Months Inventory, which is the time it would take to deplete the current supply of homes at the current rate of demand is creeping up to 6.5 – 8 months.  This indicates that it is obviously a buyers’ market.  March, a month that jump starts the sales season, will be a good indicator of whether or not more homes get absorbed at a faster rate.  It will be interesting to see which direction the median sales price moves from its current balanced position.

The Price Class Spectrum Impact

The average sales price is 4% higher than the median due to double-digit increases in sales in the high end.  Unlike last year, homes at the lower end of the spectrum, those $70,000 and below are experiencing double-digit increases also.  Most notable of all price class sales increases is the

• $700,000-$799,999 range which has experienced a 65% increase over last year. 
• The second highest demand increase [33%] has been in the $900,000-$999,000 range and
• the third highest increase [27%] in demand is $500,000-$599,999.
• Homes priced $1 million and over are up 23% from 2010.

All sales through February year-to-date priced $500,000 and above represent only 5.77% of the total units sold in Houston, however their collective impact on average sales price make it appear as if there is home price appreciation in the Houston overall market.  Median sales price tells the real story.  Median price is the midpoint where half the homes sell above and half sell below. It has not changed in comparison to February YTD last year. 

What home price classes were the hottest selling in Houston YTD through 2/ 2011? 

As you can see from the Top Ten Selling Price Classes in Houston for 2011, homes priced from $70,000-$399,000 represent the greatest amount of buyer demand. These price classes represent 55% of all sales that have occurred in Houston year-to-date.

The Houston overall market is so large and rarely reflects the same trends as a submarket area located within its boundaries.  Some areas are shining brightly while others are not as lustrous.  For a breakdown of activity by area with a map, click here. 

To search for homes by price range, map and/or even foreclosures, click here.

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®

Consumers show more confidence in the economy and job market.

Now that 2010 is in our rear view mirror, we can review the first months’ statistics in the Houston Multiple Listing Service and get a feel for what kind of year 2011 will be for real estate.  It is a refreshing change from anything found in 2010.  Here is a summary by metrics:

All indicators point to a better year. Almost every single-family market metric is positive.  One really high note is “Contracts Written”.  It is up by 8% and this indicates closed sales in February will be as high as those found this month. Median sales price, contrary to other statistics on the table is down by 3%.  In reviewing home sales by price class for the month, median sales price declines are due primarily to single-family home sales occurring across a broader spectrum of price classes than occurred in 2010.  In January 2010, all price classes over $500,000 experienced double-digit increases yet at the same time, single-family price classes below $200,000 experienced declines.  In many cases, those declines were in the double-digits. 

In January 2011, more positive increases occurred across the entire price class spectrum rather than being weighted toward any price class extreme.  Since median price is the midpoint price where half the homes sold above and half sold below, a decline in median sales price for this January does not appear to be a trend, but rather an adjustment in price class demand from one year to another.

  Most price classes “Months of Inventory” place the price class in a buyers’ market with plenty of inventory in all high demand price classes. This added together with some of the lowest interest rates in modern history, it’s a great time to buy a home in Houston, Texas.  It will be interesting to note as we enter higher demand months in Spring and Summer, how the trend continues.

High-end home sales facts by price class for January 2011:  

• 0% change in home sales in $500,000-$699,999 price class
• 70% increase in homes sales in $700,000-$799,999 price class
• 23% decline in home sales in $800,000-$899,999 price class
• 0% change in home sales in $900,000-$999,999 price class
• 94% increase in home sales in $1,000,000 and over price class. 

Houston real estate by area and hotness:

All real estate is hyper-local and 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.

You can also assess how hot your area is in comparison to other areas in the Houston market by CLICKING HERE

To search for homes by price range, map and/or even foreclosures, CLICK HERE. 

Date provided by the Houston Association of Realtors® Multiple Listing Service,[HRIS] and The Real Estate Center for Texas A&M and written by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®

As I compose this update to the Houston real estate market, Congress is still haggling over an extension of the Bush tax cuts.  Right now, the most important ingredient to an improving economy and a growing housing market can be summed up in one word; certainty.  People and businesses need more certainty.  If businesses know their tax obligations and individuals can feel more certain about their long-term job prospects, it would jumpstart the economy.  Let’s hope Congress acts in a manner that stimulates business investment and more jobs get created as a result.

November was a lack luster month for real estate in Houston and the nation.  However, the Houston region seems to possess a remarkable resilience in retaining median sales price and raising the average sales price.  Average sales prices, despite lagging sales are up 4% for the year and median sales prices are up by 2% for the month and are even year-to-date with last year.

Here is a table depicting market activity in the Houston region for single-family homes for the month and year-to-date:

Houston has many submarkets that look entirely different from the above overall market. For the hottest areas in November, CLICK HERE.

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For a breakdown of activity by area with a map, CLICK HERE. 

Upscale homes have been least affected by the current market.  Home sales priced $400,000 and above have experienced increases in sales over last year.

Homes priced $900,000-$999,999 have experienced a whopping 40% increase since last year.  Homes priced $1,000,000 and more are up 9% in sales over this time last year.

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

The following table indicates by price class the hottest selling price ranges in Houston through November YTD 2010:

One encouraging change noted from last month; many price classes experienced a drop in active listings and “Months of Inventory” from last month.  This may be the harbinger of slow improvement as we enter the new year.

As you can see from the Top Ten Selling Price Classes in Houston for 2010, hot selling prices ranged from $80,000-$399,000.

Houston is currently in a buyers’ market with a good supply of homes in almost every price range and 30-year interest rates remain at 4.75%..  It’s a great time to buy a home in Houston.

To search for homes by price range, map and/or even foreclosures, CLICK HERE.

In conclusion, based on the projections by Veros Real Estate Solutions and the statistics herein that support their findings, Houston is the strongest market in the nation in terms of home price appreciation.  It is expected to see a 3.8% increase in home prices over the next year, more than any other U.S. city.  When it comes to investing in real estate, the Houston-Sugar Land-Baytown market is the first market to consider.

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®

The Houston single-family real estate market August YTD is even in closed sales in comparison to last year.  There have been 35,834  MLS recorded home sales year-to-date and that’s the exact same figure as last year.  Dollar volume year-to-date is up over last year by 4% and that contributed to an average sales price increase of 4%.  Median sales price remains flat from last year; $153,600.

Buying a home is a better bargain than before the tax credit expiration.  Interest rates have steadily declined since April 30th and 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 – impacted by national uncertainty.

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.  With so many national issues in the air - health care, the pending expiration of the Bush tax cuts, Cap and Trade?, what taxes will be levied, etc., there is a cloud of uncertainty over our economic future.  These times make it difficult for people to feel good about long term investments.  Real estate in Houston is positioned to spring back faster than other regions when businesses and consumers feel more confident about the future.

A snapshot view of metrics for the month and year-to-date can be found below. 

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.  This enables sellers to make quick adjustments to their marketing strategy so that their home can remain favorably positioned over the competition.  Contact any of our agents under the “Find an Agent” tab on click here to learn more about our Online Sellers’ Advantage program.

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

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

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.

One anomaly Houston’s hottest selling home prices is the high-end market.  As you can see from the list below, most price classes over $400,000 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 52% over last year, the highest increase in sales of any price class.  Homes priced $1,000,000 or more are up 9% over last year. 

Highest Price Class Increase Year-to-Date

1.      $900,000-$999,999 up 52% year-to-date

2.      $600,000-$699,999 up 19% year-to-date

3.      $400,000-$499,999 up 19% year-to-date

4.      $500,000-$599,999 up 14% year-to-date

5.      $1,000,000 or more up 9% year-to-date

6.      $800,000-$899,999 up 2% year-to-date

The Low-End Market is Not so Hot.

Another unusual 2010 statistic regarding Houston’s hottest selling prices is the low-end market.  The majority of price classes below $80,000 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, click here.

View the Houston Hotness Index for August 2010 by clicking here. 

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, click here.

It will be interesting to see what the last half of 2010 has in store for the real estate market.  November elections may increase confidence in the nations’ future.  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 single-family home sales in June increased by 3% with 5,584 homes sold.  While that is a nice increase over June of last year, contracts written [a measure of current demand] are lagging somewhat.  There were 2,686 contracts written in June, which is down 19% from last year.  The 2010 Tax Credit, [eligibility required a fully executed contract in place by April 30^th] brought home buying demand forward and it is difficult to measure how much influence this will have throughout the summer.  Year-to-date, the Houston real estate market is 9% ahead of last year.  

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.