Houston Housing Market

Inventory for the Houston housing market held steady in the first month of 2009. As at the end of January the market wide inventory for Houston sat at 5.8 months. Leaving the Houston market in a neutral state despite the national economic turmoil, this being the case it is hard not to wonder how super heated the market would be if Houston was not being impacted by Macroeconomic factors. Despite this neutral state I believe that when the complete market numbers come out for the month of January around the 20^th we will have the third month on record where the average home sale price dropped.

Total Breakdown of Activity For The Houston Housing Market

In January the inventory for the $80,000 and below price point fell once again from 4.3 months in December of 2008 to 4.1 months for January 2009. The drop in housing inventory is accompanied by an increase in total home sales for the second month in a row. A rise in total number of sales and a drop in inventory for two months gives us a seller’s market trend. This time last year, the $80,000 to $150,000 price category was the weakest for the Houston market. The month of January 2009 brings mixed results for the $80,000 to $150,000 price point. With both total sales and inventory declining giving us 5 months of inventory instead of 5.1 months of inventory in December of 2008. Having not seen an increase in sales the drop in inventory is likely due to fewer foreclosures coming onto the market. Inventory for the $150,000 to $300,000 price point ticked up from 5.6 months of inventory to 5.7 months following the month of January 2009. This level of inventory is considered a neutral market where neither sellers nor buyers have the upper hand. The drop in housing inventory in the $300,000 to $700,000 price range from last month turned out to be a fluke as inventory headed back up after dropping in December now standing at 7.9 months. In addition to the increase in inventory the average sales price for this price point was down for the month of January. The $700,000 and above price category jumped from 14 months of inventory to 15 months and the average home sale price for the period dropped nearly 4%. This trend shows substantial weakness and represents the expectations of further price declines.

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 300,000-700,000 Price Range

Houston Homes Market Breakdown For 700,000 And Above

Interesting is the 180 degree turn the different price points for Houston have taken, although they are not surprising and had been expected. January 2008 had the $150,000 and below market very sour with high levels of foreclosures and lots of inventory and the $300,000 and above price point was very strong with the $700,000 and above market setting new records for the average and median home sale price each month. Now we note the $150,000 and below market being very strong considering the current credit market turmoil and the $700,000 and above market getting weaker by the month. These trends provide a very rare opportunity for the move up buyer. The move up buyer finally after 10 years of taking it in the shorts has a rare opportunity to get top price for their home and still have major negotiation clout that should allow for them to get a great buy.

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 Monday, February 2nd, 2009 at 10:18 pm 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.