The Houston housing market in December and November gave back much of the gains that had been seen over 2008, in property appreciation. But, still managed to post a positive number for appreciation of the average home sale price and did not see a decline in the median home sale price. Inventory at the end of the year describes a stable market but sales have now been off from the peak two full years, returning us to sales numbers seen back in 2004. This mixed bag of data can only be explained by impacts of the national credit crisis as other economic data for the Houston metro area speaks of a strong economy. In any rate the Houston housing market has faired much better than most of the country and sits well to make a strong recovery once the credit markets thaw. I, however would not expect this to occur just around the corner as many things need to be seen on a national scale before a true turnaround is probable. Below you can find the complete real estate market report, released by the Association of Realtors for both Decemeber 2008 and the official year end numbers.
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Property sales throughout the greater Houston area ended 2008 as they began, with lower volume following two consecutive record years. Overall property sales fell 16.0 percent last month when compared to December 2007, and sales of single-family homes were down 13.5 percent, according to new monthly data compiled by the Houston Association of REALTORS® (HAR). However, the figures show dramatic improvement from November, when both total property and single-family sales volume declined by more than 30 percent. The average price of a single-family home in Houston dropped 10.4 percent last month to $192,135 compared to December 2007, but rose 1.0 percent to $208,266 on a year-to-date basis. At $145,000, the median price of a single-family home in December fell 6.1 percent year-over-year. The median price represents the figure at which half of the homes sold for more and half sold for less. On a year-to-date basis, the median price was unchanged at $152,000. Sales of all property types in Houston for December 2008 totaled 5,126, off 16.0 percent compared to December 2007. Total dollar volume for properties sold during the month was $960 million versus $1.2 billion one year earlier, a 24.5 percent decline. Full-year 2008 sales of 69,220 properties produced $14 billion in total dollar volume, which was 15.9 percent lower than the 2007 full-year total dollar volume, but flat in comparison to 2005. Rental properties remained in high demand in December, with leases of single-family homes up 26.2 percent and townhouses/condominiums up 24.6 percent on a year-over-year basis. This continues to suggest that many consumers are opting to rent property instead of purchase until they’re convinced of meaningful improvement in the economy. “Lower mortgage rates are a good first step to reviving the real estate market, but many consumers are looking to Washington for the full scope of the economic stimulus plan before committing to major spending,” said Vicki Fullerton, HAR chair and Broker of Record at RE/MAX of The Woodlands & Spring. “This wait-and-see approach has kept Houston’s rental market strong, and even with December’s lower home prices, we’re maintaining an even keel when you compare Houston to the national picture.” 2008 Annual Market Comparison
December Monthly Market Comparison The number of available properties, or active listings, at the end of December fell 11.7 percent from December 2007 to 43,748. That’s 3,606 fewer active listings than November 2008 and is considered an indication that inventory levels are balanced. Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,290, which was 12.8 percent lower than last year and suggests another likely sales decline next month. The month’s inventory of single-family homes for December came in at 5.7 months, down 3.1 percent from one year earlier and the lowest level of 2008. |
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| * Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market. | ||||||||||||||||||||||||||||||||
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Single-Family Homes Update At $192,135, the average sales price for single-family homes dropped 10.4 percent from December 2007, when it was $214,363. The median price of single-family homes in November was $145,000, off 6.1 percent from one year earlier. That compares to the national single-family median price of $180,800 reported by the National Association of REALTORS®. These data continue to demonstrate the higher value and lower cost of living that prevail in the Houston market.  12-month moving average of the median and average home sale price Additionally, total December sales of single-family homes in Houston came in at 4,443, down 13.5 percent from December 2007 and the 16th consecutive monthly drop.  The Five Year Moving Average For Houston Home Sales HAR also reports existing home statistics for the single-family home segment of the real estate market. In December 2008, existing single-family home sales totaled 3,527, an 8.7 percent decrease from December 2007. At $171,774, the average sales price for existing homes in the Houston area fell 11.5 percent compared to last year. The median sales price of $130,000 for the month was also down 6.1 percent from one year earlier.
Townhouse/Condo Update The number of townhouses and condominiums sold in December fell compared to one year earlier. In the greater Houston area, 378 units were sold last month versus 498 properties in December 2007, translating to a 24.1 percent decrease in year-over-year sales.
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