Houston Housing Market

Even though the housing market in Houston did not show across the board improvement, the below 300,000 price ranges have been showing unexpected strengthening. Total single family housing inventory dropped significantly, sitting at 6.2 months of inventory at the end of November compared to 6.5 months of inventory in October. The drop in housing inventory totaled 1,565 homes through November. This drop is more likely to be due to sellers removing their homes from the market and not due to a surge in home sales. However, we will not know for sure until the complete set of numbers is released in the middle of December. Another interesting change noted in the Housing market through November is a subtle increase in average and median home sale prices for properties below the $300,000 price point and a drop in the average and median home sale prices for properties above $300,000. This trend fits strongly with my prediction that the Houston housing market would see troubles in the higher end housing market but likely will not have these same issues in the price ranges falling within FHA loan limits.

Total Breakdown of Activity For The Houston Housing Market

The 80,000 and below price point dropped considerably under the 5 months of housing inventory seen in October to 4.7 months at the close of November. If this trend in inventory reduction for the 80,000 and below price point continues, we could very well see a seller’s market atmosphere for entry level housing. What once was the weakest and most unstable price point in the Houston housing market has continued to show movements towards stability. The 80,000 to 150,000 price point has now dropped below 5.6 months of housing inventory at the end of November 2008. The total Houston housing inventory in the 150,000 to 300,000 price point fell from 6.2 months of inventory in October to 6 months for November. Housing inventory levels for the 300,000 and above price point decreased slightly to 9.1 months of inventory from the 9.2 months recorded for October. The 300,000-700,000 price range, came in at 8.1 months slightly below the number of 8.2 months seen at the end of October. The 700,000 and above price range continued to show weakness having an inventory of 14.2 months at the close of November, which is up from the 13.9 months posted at the end of October.

Houston Homes Market Breakdown For 80,000 And Below

Houston Homes Market Breakdown For 80,000-150,000 Price Range

Houston Homes Market Breakdown For 150,000-300,000 Price Range

Houston Homes Market Breakdown For 300,000 And Above

Houston Homes Market Breakdown For 300,000-700,000 Price Range

Houston Homes Market Breakdown For 700,000 And Above

The November housing inventory numbers show a tale of two markets with continued strengthening in the price ranges falling within the FHA loan limits of $274,000. These results could be deemed impressive when taking into account the current turmoil in the credit markets. Even with this set of good news, the inventory report for November was not solely rosy. The continued increase in housing inventory in the above $700,000 price range shows that Houston is not shielded against troubles seen across other markets. Having the inventory move across the 14 month point suggests continued price declines for that price point. These price declines should show up in the November complete report released by the Houston Association of Realtors and will likely drag down the market wide average home sale price and possible the median home sale price as well. Overall, November’s Houston housing market inventory report suggests a stable housing market for the Houston area.

Information contained in this post was acquired from the Houston Association of Realtors via the multiple listing service database and archive. Data should be considered reliable, but is not guaranteed to be accurate.

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This entry was posted on Tuesday, December 2nd, 2008 at 11:37 am and is filed under Houston Housing Market. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.