Stephen Reddell's Katy Texas Blog

Houston Home Prices Reach a Seven-Month High in April

Single-family home sales volume is second highest of 2009

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 month of April brought Houston’s overall housing market negative results when all listing categories are compared to April of 2008. Total property sales and total dollar volume fell on a year-over-year basis, as did average and median single-family home sales prices.

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).

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.

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.