Houston HAR MLS for July 2011
The second consecutive monthly increase is still attributed to slower than
usual home sales in 2010 following expiration of the tax credit
HOUSTON — (August 16, 2011) — What do
you get when you compare seasonal summer home buying in a single month to the
same month a year earlier shortly after a home buyer tax credit expired? If it’s
July 2011 in Houston, Texas, it’s a nearly 17 percent increase in home sales.
Last year’s third quarter slowdown in home sales continues to make this year’s
generally “typical” real estate activity appear slightly more positive than it
otherwise would be considered. July marked the third time in 2011 that sales
volume entered positive territory. It also saw the average price of a
single-family home reach its highest level for a July in Houston.
According to the latest monthly data compiled by the Houston Association of
REALTORS® (HAR), July sales of single-family homes rose 16.7 percent versus one
year earlier. That third increase of the year followed gains in January and
June. All segments of the housing market, from the sub-$80,000 to the $500,000
and above, experienced positive sales. On a year-to-date basis, sales declined
2.2 percent. Compared to July of 2009, a year with no unusual market factors
like Hurricane Ike in 2008 and the 2010 tax credit, single-family home sales
were down 12.2 percent.
“It is still premature to label this latest increase in home sales a true
positive indicator, but with the effects of last year’s tax credit fading and
local employment figures strengthening, we should soon have an accurate reading
on the Houston real estate market,” said Carlos P. Bujosa, HAR chairman and VP
at Transwestern. “I believe the year-to-date and July 2009 comparisons probably
yield the most realistic picture of what’s happening locally, and that places
Houston in an enviable position when you see how other real estate markets
around the country continue to struggle.
The average price of a single-family home rose 0.7 percent from July 2010 to
$224,110, an all-time high for a July in Houston and the second highest average
price of 2011. The July single-family home median price—the figure at which half
of the homes sold for more and half sold for less—increased 0.3 percent
year-over-year to $160,000. That is unchanged from June and remains the highest
that the median price has been this year.
Foreclosure property sales reported in the Multiple Listing Service (MLS)
increased 13.5 percent in July compared to one year earlier. Foreclosures
comprised 19.6 percent of all property sales, up slightly from the June level
but lower than the first five months of the year. The median price of July
foreclosures was unchanged at $84,000 on a year-over-year basis.
July sales of all property types in Houston totaled 5,962, up 17.1 percent
compared to July 2010. Total dollar volume for properties sold during the month
increased 18.7 percent to $1.27 billion versus $1.07 billion one year
earlier.
The month of July brought Houston’s
overall housing market largely positive results when all sales categories are
compared to July of 2010. However, as has been noted for the past few months,
sales volume gains were skewed by the 2010 tax credit that resulted in a decline
in home sales after it expired. Total property sales and total dollar volume
rose on a year-over-year basis. The average price reached a record high for a
July in Houston and the median price edged up year-over-year.
Month-end pending sales for July
totaled 3,659, up 12.0 percent from last year. The rate is moving more in line
with levels typically seen during the summer home sales months, but still
reflects the rapid pace at which 2010 sales went under contract in advance of
the tax credit closing deadline.
The number of available properties,
or active listings, at the end of July declined 9.5 percent from July 2010 to
50,022. The inventory of single-family homes dipped to 7.6 months compared to
7.7 months one year earlier. That means that it would take 7.6 months to sell
all the single-family homes on the market based on sales activity over the past
year. The figure is significantly better than the national inventory of
single-family homes of 9.5 months reported by the National Association of
REALTORS® (NAR).
| CATEGORIES | JULY 2010 | JULY 2011 | PERCENT CHANGE |
| Total property sales | 5,091 | 5,962 | 17.1% |
| Total dollar volume | $1,070,466,812 | $1,270,258,331 | 18.7% |
| Total active listings | 55,247 | 50,022 | -9.5% |
| Total pending sales | 3,267 | 3,659 | 12.0% |
| Single-family home sales | 4,313 | 5,034 | 16.7% |
| Single-family average sales price | $222,534 | $224,110 | 0.7% |
| Single-family median sales price | $159,490 | $160,000 | 0.3% |
| Months inventory* | 7.7 | 7.6 | -1.8% |
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.
July sales of single-family homes in Houston totaled 5,034, up 16.7 percent
from July 2010. This marks the third increase of the year after an 8.4 percent
gain in January and 0.5 percent bump in June. The July number represents the
second highest sales volume month of the year. June was higher with 5,570 homes
sold.
On a year-to-date basis, sales are down 2.2 percent. When compared to July of
2009, a year in which there were no unusual real estate market influences such
as Hurricane Ike in 2008 and the 2010 home buyer tax credit, single-family home
sales were down 12.2 percent.
Broken out by segment, July sales of homes priced below $80,000 rose 15.8
percent; sales of homes in the $80,000-$150,000 range climbed 17.7 percent;
sales of homes between $150,000 and $250,000 increased 18.5 percent; sales of
homes ranging from $250,000-$500,000 advanced 13.7 percent; and sales of homes
that make up the luxury market—priced from $500,000 and up—soared 25.7 percent.
The average price achieved the highest level for a July in Houston. At
$224,110, the average price of single-family homes rose 0.7 percent compared to
last July. At $160,000, the median sales price for single-family homes edged up
0.3 percent versus July 2010, remaining flat from June at $160,000, the highest
median price of 2011 and the highest level in two years. The national
single-family median price reported by NAR is $184,600, illustrating the
continued higher value and lower cost of living available to consumers in
Houston.
HAR also breaks out the sales performance of existing single-family homes
throughout the Houston market. In July 2011, existing home sales totaled 4,341,
a 22.0 percent increase from July 2010. The average sales price climbed 3.3
percent to $212,895 compared to last year and the median sales price of $150,000
was unchanged.
The number of townhouses and condominiums that sold in July jumped 26.7
percent compared to one year earlier, marking the second sales increase of the
year. The first was a 14.7 percent hike in January. In the greater Houston area,
460 units were sold last month versus 363 properties in July 2010.
The average price rose 3.8 percent to $156,754 from July 2010 to July 2011.
The median price of a townhouse/condominium ticked up 1.7 percent to $121,000.
The Houston market experienced
continued high demand for lease properties in the month of July. Single-family
home rentals jumped 21.6 percent compared to one year earlier and year-over-year
townhouse/condominium rentals rose 7.7 percent. This demand has been largely
driven by steady improvement in local employment numbers, with REALTORS®
observing a surge in consumers relocating to Houston from around the country.
- Volume of single-family home sales rose for the third time in 2011;
- Volume of townhouse/condominium sales rose for the second time in 2011;
- At $224,110, the average price of a single-family home reached the highest
level for a July in Houston; - At $160,000, the median price of a single-family home remained flat from
June, maintaining the highest level of 2011 and the highest level in two years; - Townhouse/condominium sales rose for the second time in 2011;
- Single-family home rentals rose 21.6 percent;
- Townhouse/condominium rentals increased 7.7 percent;
- 7.6 months inventory of single-family homes compares favorably to the
national average of 9.5 months.
The computerized Multiple Listing Service of the Houston Association of
REALTORS® includes residential properties and new homes listed by 24,000
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 50,000 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.)
Founded in 1918, the Houston Association of REALTORS® (HAR) is a
24,000-member organization of real estate professionals engaged in every aspect
of the industry, including residential and commercial sales and leasing,
appraisal, property management and counseling. It is the largest individual
dues-paying membership trade association in Houston as well as the second
largest local association/board of REALTORS® in the United States.
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