This months report from HAR looks similar to that of last month with very little to say except the luxury market inventory continues to expand and the total sales in the luxury market continued to decline. Most of the drop seen in the median and average home sale prices can be explained by fewer properties luxury properties being sold. This change in buying habits weighs down both the median and average home sale prices.
HAR Houston Real Estate Market Report:
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Average and median home prices for the greater Houston area reached the highest levels since September 2008 in April, and sales volume was the second highest for 2009, reflecting a continuation of the traditional spring uptick in real estate activity. Compared to one year earlier, however, overall April property sales fell 24.3 percent and sales of single-family homes dropped 22.5 percent, according to new monthly data prepared by the Houston Association of REALTORS® (HAR). At $149,050, the April single-family home median price – the figure at which half of the homes sold for more and half sold for less – held steady versus one year earlier. When foreclosures are removed from the analysis, the median price of traditional single-family homes rose slightly to $170,000. The average price of a single-family home in Houston dropped 5.8 percent last month to $194,222 compared to April 2008. Sales of foreclosure properties, which typically sell below market prices, continue to taper. In April 2009, foreclosures made up 23.6 percent of all single-family home sales in the Houston area compared to 34.0 percent in January, 28.0 percent in February and 24.5 percent in March. The median price of April foreclosure sales reported in the Multiple Listing Service (MLS) tumbled 8.6 percent from $91,000 to $83,153 on a year-over-year basis. Sales of all property types in Houston for April totaled 4,898, off 24.3 percent compared to April 2008. Total dollar volume for properties sold during the month was $920 million versus $1.3 billion one year earlier, a 28.9 percent decline. Demand for rental properties rose again in April, with leases of single-family homes up 8.0 percent on a year-over-year basis and leases of townhouses and condominiums up 12.2 percent. “The housing industry recovery will be a gradual process, but Houston continues to demonstrate the strength of its home values compared to other communities around the country where pricing ballooned and then bottomed out,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Many HAR members are reporting growing activity among first-time home buyers who are taking advantage of historically low interest rates and the federal government’s $8,000 tax credit. The real estate business typically picks up during the spring and summer months,” she added. April Monthly Market Comparison The number of available properties, or active listings, at the end of April fell 14.7 percent from April 2008 to 45,269. That is 499 fewer active listings than March 2009 and signals that inventory levels remain balanced. Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,685, which was 25.3 percent lower than last year and suggests the likelihood of a decline in sales when the May numbers are tallied. The month’s inventory of single-family homes for April came in at 6.1 months, down 5.7 percent from one year earlier. The national month’s inventory of single-family homes rose slightly to 9.8 months, according to the National Association of REALTORS® (NAR). |
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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 $194,222, the average sales price for single-family homes dropped 5.8 percent from April 2008, when it was $206,239. However, the figure is at its highest level since last September. The median price of single-family homes in April was $149,050, unchanged from one year earlier. The national single-family median price reported by NAR is $175,200, illustrating the continued higher value and lower cost of living that prevail in the Houston market. |
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April sales of single-family homes in Houston totaled 4,200, down 22.5 percent from April 2008, and accounted for the 20th consecutive monthly drop. After several months of double-digit increases, year-over-year sales of single-family homes priced at $80,000 and below dipped 2.1 percent in April, reflecting the slowdown in foreclosure-related transactions.
HAR also reports existing home statistics for the single-family home segment of the real estate market. In April 2009, existing single-family home sales totaled 3,519, a 21.8 percent decrease from April 2008. At $178,141, the average sales price for existing homes in the Houston area fell 5.2 percent compared to last year. The median sales price of $139,000 for the month was unchanged from one year earlier.
Townhouse/Condo Update
The number of townhouses and condominiums sold in April fell compared to one year earlier. In the greater Houston area, 384 units were sold last month versus 570 properties in April 2008, translating to a 32.6 percent decrease in year-over-year sales. However, that represents the highest sales volume for all of 2009.
The average price of a townhouse/condominium dipped to $167,121, down 1.5 percent from one year earlier. However, that represents the highest price since last August. The median price declined 3.4 percent to $135,000 from April 2008 to April 2009, but is unchanged from last month.
Lease Property Update
Demand for single-family rentals increased again in April, demonstrating that rentals remain a viable housing option for buyers who may not yet be qualified or comfortable making a home purchase at this time. Single-family home rentals rose 8.0 percent last month compared to a year earlier. Year-over-year townhouse/condominium rentals rose 12.2 percent.
Houston Real Estate Milestones in April
•At $194,222, the average price of a single-family home reached its highest level since September 2008;
•At $149,050, the median price of a single-family home rose to the highest level since September 2008;
•Volume of single-family home sales reached the second highest level of 2009;
•Volume of townhouse/condominium sales reached the highest level of 2009;
•At $167,121, the average price of a townhouse/condominium rose to the highest level since August 2008;
•Single-family home rentals rose 8.0 percent;
•Rentals of townhouse and condominium units increased 12.2 percent;
•Month’s inventory of single-family homes dipped from 6.4 to 6.1 months compared to the national average of 9.8 months;
•Active listings fell 14.7 percent, representing a generally balanced supply of housing inventory.
The computerized Multiple Listing Service of the Houston Association of Realtors® includes residential properties and new homes listed by 26,000 Realtors throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 53,000 properties may be found on the Internet at http://www.har.com.
The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.
The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)
June 6th, 2009 at 3:05 am
That has to be good news to see month to month holding fairly steady. We have seen the same type of comforting news out here in the bay area. Lets hope that it continues for the next several months.
June 7th, 2009 at 10:29 am
Sounds like you guys are in the same boat as we are in Austin.
June 9th, 2009 at 9:38 am
We here in Fort Worth are seeing a little increase in the luxury market. It still is slow compared to regular home sales, but a slow movememt up is better than none at all.