First-quarter real estate sales indicate Houston has pulled out of a negative sales position and displays the beginning of very positive trends. The latest market metrics correlate very closely with news from the Texas Workforce Commission that Houston-area employers added 10,300 jobs from January to February, an increase of 2,000 real job gains than is atypical for the season.  Employment is the single largest driver of home sales.

Last year in February 2009, Houston experienced a 24% decline in year-to-date sales over 2008.  Every month following February, sales declines began to decline and the year ended with 7% fewer home sales than 2008. 

1. First Quarter 2010 sales are equal to those found in First Quarter 2009 however,
2. Dollar volume sales are up by 13% for a total of $2,183,412,127. 
3. The average sales price is up 13% at $204,191 and the median sales price is up 8% at $149,900. 
4. The average price per square foot is up 10% and now stands at $87. 
5. Homes on the market are up by 3% with 28,793 listings, certainly not a supply that would impact home values.  The best news of all is that
6. Days-on-Market, the average number of days it takes to sell a Houston home is down by 16%. Days-on-Market are 81.

Previously, we mentioned the rise in upscale homes as a rationale for a rise in average and median price in the overall Houston market during the First Quarter.  These were attributable to only 23% of all sales in Houston.

What home price classes were the hottest selling in Houston through First Quarter?  

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

Top Ten Selling Price Classes Houston Single-Family Real Estate First Quarter 2010
Price Class	Sales Year to Date	Active Listings	Months of Inventory
1. $200,000-$249,999	1,028	3,078	6.5
2  $250,000-$299,999	750	2,495	7.6
3. $300,000-$399,999	722	2,759	8.2
4. $120,000-$129,999	591	1,575	6.1
5. $130,000-$139,999	575	1,502	5.8
6. $110,000-$119,999	573	1,448	6.2
7. $90,000-$99,999	509	1,251	6.1
8. $150,000-$159,999	500	1,391	6.3
9. $140,000-$149,999	486	1,454	6.6
10$80,000-$89,999	476	984	5.4

 As you can see from the Top Ten Selling Price Classes in Houston for 2010, hot selling prices ranged from $80,000-$399,000. These price classes are expected to be hot in Houston at least through June 30^th because of the time-contingent 2010 IRS Home Buyer Tax Credit.  Setting aside this temporary demand incentive, these price classes are also more aligned with historical price class demand in Houston.

These attributes will spark demand through June, but what about the rest of the year?  While no one has an accurate crystal ball, Dr. Barton Smith of the UH Center for Public Policy remarked,” A year ago, I thought we’d be dragging behind the parade but we’re just not doing that.”

 

The year 2009 was a bleak year for the economy and residential real estate and first-quarter statistics indicate that we are moving toward a healthier economy and a more robust residential real estate market. Hallelujah Houston!

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®

 

 

 

 

At first blush, these statistics seem strange. With the same number of homes selling as in the first quarter 2009, how do average and median sales prices of homes go up in comparison to 2009? The answer is in the price classes of homes that have closed this year.  In March, with similar experiences in January and February, home sales priced $250,000 and higher have experienced double-digit increases over 2009.  Single-digit increases occurred in the following price classes:

• $150,000-$159,999
• $140,000-$149,999
• $  90,000-$  99,999

 

With the above three price class exceptions, all price classes below $250,000 experienced single to double-digit price declines.

 

At least for First Quarter 2010, there has been a resurgence in higher end housing demand and a decline in price classes below $250,000, with the three exceptions so noted.

Most notable of all price classes is the $800,000-$899,999 range which has experienced an 85% increase over last year.  The second highest demand increase [48%] has been in the $400,000-$499,000 range and the third highest increase [46%] in demand is $500,000-$599,999.

All sales in March priced over $249,999 represented only 23% of the total MLS homes sold in Houston, however their collective impact on average sales price and median sales price make it appear that there is home price appreciation in the Houston overall market.  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.

Prudential Gary Greene, Realtors® believes the housing market will pick up steam during the Spring selling season for 3 reasons:

 

 

 

 

 

1. The Home Buyers Tax Credit benefits both current homeowners as well as first-time home buyers.  To qualify, a binding written contract must be in place by April 30^th and the home must close by June 30^th.  To see if you qualify, click here.
2. Interest rates are at an all-time low and when these two benefits coincide, the result is a flurry of buying activity that will culminate in June.
3. It appears employment in Houston is on the rise or showing more resilience than most economists predicted.

The Houston single-family residential real estate market is experiencing some unusual statistics as it marches into 2010.  With 8% fewer home sales and 11% fewer contracts written, how do average and median sales prices of homes go up in comparison to 2009? The answer is in the price classes of homes that have closed this year.  Homes priced above $250,000, for the most part, experienced an overall sales decline in 2009.

Now comes closed sales in the first two months of 2010, and all price classes above $250,000 have experienced increases.  The two price class exceptions were the $700,000-$799,999 and $900,000-$999,999.  These two price classes are at the same level of demand as found in 2009.

What’s also unusual?  Home price classes below $250,000 have all experienced single to double digit declines in the first two months. These price classes were in highest demand this time last year.

At least for the two months of 2010, there has been resurgence in higher end housing demand and a decline in price classes below $250,000.

Most notable of all price classes is the $800,000-$899,999 range which has experienced a 93% increase over last year.  The second highest demand increase [53%] has been in the $400,000-$499,000 range and the third highest increase [50%] in demand is $1,000,000 or above.  

       

 Houston real estate sales February YTD 2010 experienced:

 

1. An 8% decline in single-family homes or a total of 5,792 sales. This is a decline which has improved from January’s 12% decline.
2. A 5% increase in dollar volume sales for a total of $1,149,747,831.  This is an increase from January’s 4% increase.
3. A 15% increase in average sales price which is currently $198,506.  In January the increase was 18%.  February may be the first month in a trend toward Houston’s move to more normal market conditions in terms of where price class demand has historically been. 
4. Days on the Market [DOM] – the time it takes on average to sell a single-family home in Houston declined 15% and is currently 82 DOM.  Hence, homes are selling faster than last year.
5. Pending sales dropped 11% [an improvement from January’s 17%] for a total of 4,981 contracts written.
6. Current listings are up 1% for a total single-family listing count of 27,978.

 

Prudential Gary Greene, Realtors® believes the housing market will pick up steam in March for 2 reasons:

1. The IRS Home Buyer Tax Credit benefits both current homeowners as well as first-time home buyers and expires on April 30.  To see if you qualify, go to

 http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

   2.  Interest rates are at an all-time low and when these two benefits coincide, the result is a flurry of buying activity that will culminate before April comes to a close.

This will spark demand through April, but what about the rest of the year?  While Houston lost jobs in 2008-2009, most economic experts anticipate the job growth to return to pre-recession levels beginning this year and extending into the entire 2011.  Jobs, more so than tax credits and low interest rates are the biggest driver of home sales.

Previously, we mentioned the rise in upscale homes as a rationale for a rise in average and median price in the overall Houston market for January 2010.  These were attributable to only 22.15% of all sales in Houston.

 

What home price classes were the hottest selling in Houston through 2/ 2010? 

The following table indicates by price class the most homes that have sold year-to-date in Houston in 2010:         

 

Top Ten Selling Price Classes Houston Single-Family Real Estate The Year 2010
Price Class	Sales Year to Date	Active Listings	Months of Inventory
1. $200,000-$249,999	508	2,880	6.2
2  $250,000-$299,999	403	2,328	7.2
3. $300,000-$399,999	369	2,533	7.7
4. $120,000-$129,999	326	1,488	5.8
5. $110,000-$119,999	320	1,385	6.0
6. $130,000-$139,999	303	1,384	5.4
7. $80,000-$89,999	284	1,052	5.8
8. $140,000-$149,999	260	1,327	6.1
9. $90,000-$99,999	259	1,182	5.9
10$100,000-$109,999	257	841	4.4

 As you can see from the Top Ten Selling Price Classes in Houston for 2010 range from $80,000-$399,000. These price classes and homes priced up to $800,000 are expected to be hot in Houston at least through April 30.  Why?  The 2010 IRS Home Buyer Tax Credit expanded to include houses priced up to $800,000. 

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®