This following article is from a recent home sales study conducted by the Houston Association of Realtors. The good news is the single family home sales prices are steadily increasing. While the actual sales volume is still off quite a bit from this time last year, the $ amounts are still on the rise. In my opinion, there are several reasons for the drop in sales volume (both real and perceived):
1.) The sales volume over the last few years has been on a record pace that was probably not sustainable
2.) Many consumers are worried about the housing market and fear it is a bad time to sell (even though Houston has been one of the strongest markets in the nation)
3.) New home construction has decreased (the fact is, new home builders overbuilt)
4.) Tighter restrictions on lending (this is actually a good thing, as it will decrease the number of foreclosures in the future)
The good news is that Houston still has a booming economy, due in large part to the energy and health care sector. That means there are still a lot of people moving here for job opportunities. For this reason, there is still a strong buyer pool out there in Houston.
For the first time in a while, people are also considering energy costs when looking for a new place to live. With gas prices hitting nearly $4.00 this summer, many people are reconsidering commuting from the suburbs (more like exurbs!).
One result of this phenomenon is that reasonably priced single family homes close to town are very hot right now. Neighborhoods like Oak Forest, Timbergrove and Riverside Terrace are all seeing record breaking growth in sales price.
-Scott
Houston Area Home Prices Soar In July As Property Sales Record Another Monthly Drop.
The average price of a single-family home sees its biggest increase in more than two years; median single-family home pricing hits a record high
HOUSTON — (Aug. 19, 2008) — Declining property sales tempered by strong single-family home average and median pricing prevailed across the greater Houston area for the eleventh consecutive month in July, according to statistics released by the Houston Association of REALTORS® (HAR). Sales of single-family homes slid 12.0 percent on a year over year basis – a smaller decline than the market has experienced in the past two month
The average price of a single-family home rose by 8.0 percent in July to $226,072, second only to last month’s all-time record high of $227,274. The figure represents the biggest jump in average price since June 2006. The median price of a single-family home rose 3.4 percent last month to $161,370, surpassing its previous high of $160,000 in June 2007. Last month HAR reported a record median single-family home sale price of $162,000 for June 2008, however the revised figure for that month is $160,800. The median price is where half of the homes sold for more and half sold for less.
Sales of all property types for July 2008 totaled 7,052, reflecting a 12.7 percent drop compared to July 2007. Total dollar volume for properties sold during the month was $1.5 billion versus $1.6 billion one year earlier, a 6.7 percent decline.
“As we approach the one-year mark from when property sales began to slow, we continue to note positive signs in the form of strong pricing and stabilizing inventory,” said Michael Levitin, HAR chairman and principal of HTownRealty.com. “Consumers from across the country and around the world are setting their sights on Houston, Texas as an extremely desirable place to buy a home during these challenging economic times.”
