MLS Report for January 2010

Posted on February 17th, 2010 by katyfamilyhomes.com
Houston’s Luxury Home Market Gets a Boost in January
Surge in sales of homes priced $500K and above promotes double-digit price appreciation
 
HOUSTON — (February 16, 2010) — The Houston real estate market opened 2010 with a mixed bag of readings, making it difficult to determine a clear direction for the months ahead.
January sales of single-family homes across the greater Houston area slid 12.3 percent compared to January 2009, according to the latest monthly data compiled by the Houston Association of REALTORS® (HAR). When broken out by segment, sales of single-family homes priced from $500,000 and above showed dramatic gains in January while sales of homes on the opposite end of the spectrum, those priced from $80,000 and below, fell. Sales of all property types declined 7.4 percent in January on a year-over-year basis.

At $144,500, the January single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 11.9 percent from one year earlier. That represents the ninth consecutive monthly increase in median price as well as the highest Houston median recorded in a January. The average price of a single-family home appreciated for the fourth straight month, reaching $194,154, up 18.4 percent versus January 2009. That figure also represents the highest for a January in Houston.

Foreclosure property sales reported in the Multiple Listing Service (MLS) fell by 30.1 percent in January compared to one year earlier. The median price of January foreclosure sales rose 4.6 percent to $84,750 on a year-over-year basis.

Sales of all property types in Houston for January totaled 3,049, down 7.4 percent compared to January 2009. Total dollar volume for properties sold during the month was $565 million versus $535 million one year earlier, representing a 5.6 percent increase.

“Several overlapping factors influenced the Houston housing market as the new year began,” said Margie Dorrance, HAR chair and principal at Keller Williams Realty Metropolitan. “These include both the first-time homebuyer tax credit and the expanded credit for existing homeowners, which may have prompted more listing activity. Strong sales activity in the higher-end single-family home segment also contributed to an overall higher average sales price for the Houston market. We hope to see both sales and pricing continue to reflect a robust real estate market as the April 30 tax credit deadline approaches and we enter the traditionally busy spring homebuying season.”

January Monthly Market Comparison
The month of January brought Houston’s overall housing market mixed results when all listing categories are compared to January of 2009. Total property sales declined while total dollar volume and both median and average single-family home sales prices rose on a year-over-year basis.

The number of available properties, or active listings, at the end of January edged up 2.3 percent from January 2009 to 45,210. That represents 2,025 more active listings than one month earlier, in December 2009, and is thought to reflect increased activity stemming from the homebuyer tax credit that expires on April 30

January’s month-end pending sales—those listings expected to close within the next 30 days—totaled 2,783, down 13.5 percent from last year. That suggests there will likely be another sales decline when the February numbers are tallied. The months inventory of single-family homes for January inched upward to 6.1 months compared to 5.7 months one year earlier, but remains better than the national months inventory of single-family homes of 7.2 months, reported by the National Association of REALTORS® (NAR).
 
CATEGORIES JANUARY 2009 JANUARY 2010 PERCENT CHANGE
Total property sales 3,292 3,049 -7.4%
Total dollar volume $535,131,442 $565,091,875 5.6%
Total active listings 44,178 45,210 2.3%
Total pending sales 3,216 2,783 -13.5%
Average single-family sales price $163,983 $194,154 18.4%
Median single-family sales price $129,110 $144,500 11.9%
Months inventory* 5.7 6.1 6.4%
* 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.
 
Single-Family Homes Update

January sales of all single-family homes in Houston totaled 2,514, down 12.3 percent from January 2009. This is the Houston market’s second consecutive monthly decline in sales. However, broken out by segment, sales of single-family homes priced between $250,000 and $500,000 jumped 21.6 percent in January while sales of luxury homes—those priced from $500,000 to the millions—surged 40.0 percent. By contrast, sales of homes in the below-$80,000 segment fell 28.9 percent and those priced between $80,000 and $150,000 slid 19.3 percent.

Heightened sales activity in the higher end of the housing market drove pricing up in January. At $144,500, the median sales price for single-family homes rose for the ninth consecutive month, up 11.9 percent from January 2009. That’s its highest median for a month of January in Houston. The national single-family median price reported by NAR is $177,500, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. The average price of single-family homes in January was $194,154, an increase of 18.4 percent from one year earlier. That represents the fourth straight monthly jump in the average price and the highest for a January in Houston.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In January 2010, existing home sales totaled 2,071, an 11.9 percent drop from January 2009. The median sales price rose 13.7 percent to $133,000 compared to last year. The average sales price of $180,159 shot up 23.0 percent from its January 2009 level.

Townhouse/Condo Update

The number of townhouses and condominiums that sold in January rose 14.8 percent compared to one year earlier. In the greater Houston area, 241 units were sold last month versus 210 properties in January 2009. The median price of a townhouse/condominium fell 11.3 percent year-over-year to $111,500. The average price slipped 4.3 percent to $147,501 from January 2009 to January 2010.

 

Lease Property Update

Demand for single-family home rentals rose 4.7 percent in January compared to a year earlier. Year-over-year townhouse/condominium rentals climbed 5.1 percent.
Houston Real Estate Milestones in January

  • The average price of a single-family home appreciated for a fourth straight month, by 18.4 percent, to $194,154, the highest level     for a January in Houston;
  • The median price of a single-family home rose for the ninth consecutive month, by 11.9 percent, to $144,500, the highest level for     a January in Houston;
  • 6.1 months inventory of single-family homes compares favorably to the national average of 7.2 months;
  • Townhouse/condominium sales rose 14.8 percent;
  • Total dollar volume grew 5.6 percent, reaching $565 million.
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    The computerized Multiple Listing Service of the Houston Association of Realtors® includes residential properties and new homes listed by 25,000 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 25,000-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 local association/board of Realtors® in the United States as well as the largest individual membership trade association in Houston.

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    Filed under: Economy/Market, Katy Family Homes

    Firethorne Community Sets Record in January 2010

    Posted on February 16th, 2010 by katyfamilyhomes.com

    Federal Housing Tax Credit Program Helps Firethorne Achieve

    Record-Breaking January Home Sales

    Katy/Fulshear – Feb. 16, 2010. . . . Firethorne sold 23 new homes in January 2010, marking a record high for January sales for the Katy/Fulshear residential real estate development. The all-time high January sales record was achieved in part thanks to the Federal Housing Tax Credit Program. The 1,400-acre master-designed community, located 15 miles west of Houston’s Energy Corridor, also achieved record-breaking annual sales in 2009, up 16.6 percent over the previous year. 

    The Federal Housing Tax Credit is worth up to $8,000 for first-time homebuyers and $6,500 for move-up buyers at Firethorne.  The tax credits are available through April 30,,2010.

    The previous January home sales record for the four-year-old Katy/Fulshear residential community was 15 sales in 2007. Firethorne has sold 948 homes project-to-date. 

     “We’re very pleased with these figures, as well as the fact that 87 percent of these sales were brought to us by Realtors®,” noted Firethorne General Manager Wayne Meyer.   Firethorne hopes to maintain this level of home sales through the spring, thanks to the extension of the federal housing tax credits through the end of April. 

    According to Meyer, Firethorne has been holding its own thanks to continued growth in the Katy and Fulshear areas and for being part of great school districts. “BP America and Conoco/Phillips have relocated employees here, plus three major Houston hospitals are expanding in this area — two under construction and one on the drawing board,” he noted.

    The Firethorne builder team consists of Coventry Homes, Highland Homes, Parkwood Builders, Partners in Building, Perry Homes, Plantation Homes and David Weekley Homes.

    Firethorne is attractive to the Houston relocation market with its proximity to the Energy Corridor, location in top-ranked school districts and the availability of estate-sized lots typically found in the country with all of conveniences of master-designed recreational amenities, such as state-of-the-art technology and nearby shopping, retail, dining, entertainment and medical facilities.  The community features 150 acres devoted to parks and recreational amenities, a 12-acre lake with surrounding greenbelt, resort-style swim center, sports fields, hike/bike trails, parks and playgrounds, discovery-rich wildlife observation area and a natural bird habitat.  It’s where the vibrancy of West Houston meets the small-town charm of Katy/Fulshear.  Take I-10 West and exit Pin Oak to FM 1463, go to www.firethorne.info, or call 281-693-1011.        

    If you, or someone you know, are considering moving to/from the Katy, TX area, contact Stephen Reddell at http://www.katyfamilyhomes.com.

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    Filed under: Buyers, Firethorne, Katy Family Homes

    Why Should You Sign a Buyer’s Rep Agreement

    Posted on February 11th, 2010 by katyfamilyhomes.com

     

     

     What is a buyer’s rep agreement?

    If you are in the process of buying a home, and selecting a real estate professional to assist you, you may be asked to sign a Buyer Representation Agreement – or Buyer’s Rep. This is a legal document that lays out the working relationship between you and your agent. It details the services that you are entitled to and what your agent’s exectations are of you in return. I like to think of it as way for me to ask my clients for their loyalty while explaining to them my services. The language is very formal but you, as a buyer, should not be intimidated by it. It is an important tool for clarifying expectations.

    Why should you sign it?

    1- If you sign the form, you will be treated like a client, rather than a customer. This will allow you access to certain information and advice that you would not have if you are only a customer. Once you enter into this agency relationship, you have formed a fiduciary relationship with your agent and he/she must put your interests first and protect your confidentiality. ASk you agent to explain any questions you may have reagrding the differences between a client and customer. If he/she cannot explain the differences, RUN!!

    2- It clearly lays out the payment plan for your agent and how/when you would be responsible to pay some or all of it. This is something you need to know. Is it not? Never assume that the seller will pay all of the commission. Open communication about this one fact will save you much frustration should an issue arise.

    3- Two-way loyalty is established. This again, opens the communication lines and helps to avoid misunderstandings. Clearly set expectations and goals go a long way in creating a smooth transaction in real estate.

    4- Agency relationships aare based on mutual consent. Most buyer rep agreements specify timelines for the agency relationship. However, they can be terminated early if both parties consent. Most agents will be willing to end the agreement if the relationship is not going well. Many will even limit the agreement to a small of a time period as one day to allow both sides to get to know each other and explore working together before asking ofr a long term commitment. Dont be bashful, ask your agent if they are willing to do this.

    5- Forming a team. Believe me, you are much better off with an agent that is acting on your behalf and with your best interests in mind than you will be alone in the process or with an agent that pretends that they are representing you when legally and realistically, they are in fact acting as a sub-agent to the seller. Please find a good agent and willingly enter into an agency agreement with them.

    If you are looking to buy or sell a home in the Katy, TX or West Houston areas, I would love to help you. Please go to my website at www.katyfamilyhomes.com or give me a call and we will find take care of your needs. You can also follow me on facebook at http://bit.ly/bKOo4W or twitter at www.twitter.com/stephenreddell.

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    Filed under: Buyers, Katy Family Homes, Sellers

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