Stephen Reddell's Katy Texas Blog

HOUSTON HOME SALES LAG IN APRIL YEAR-OVER-YEAR COMPARISON

Interest in rental properties continues to grow

According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), April single-family home sales fell 14.2 percent versus one year earlier. Only the under-$80,000 segment of the market experienced increased sales, which weighed down pricing. Compared to April of 2009, a year with no unusual market factors such as Hurricane Ike in 2008 and the 2010 tax credit, single-family home sales were up 10.1 percent.

The average price of a single-family home dipped 0.6 percent from April 2010 to $202,545. The April single-family home median price—the figure at which half of the homes sold for more and half sold for less—declined 2.2 percent year-over-year to $148,000.

Foreclosure property sales reported in the Multiple Listing Service (MLS) decreased 4.6 percent in April compared to one year earlier. Foreclosures comprised 22.0 percent of all property sales in April, down from 23.5 percent in March. The median price of April foreclosures fell 10.4 percent to $79,700 on a year-over-year basis.

April sales of all property types in Houston totaled 5,534, down 12.0 percent compared to April 2010. Total dollar volume for properties sold during the month declined 12.8 percent to $1.1 billion versus $1.2 billion one year earlier.

“The April home sales figures remain skewed, as this was the period last year when the final push was on for consumers to beat the April 30 home buyer tax credit deadline,” said Carlos P. Bujosa, HAR chairman and VP at Transwestern. “We see tremendous interest in the Houston housing market as local employment numbers strengthen, particularly among rental properties, which give consumers an option until they are ready to enter the market as buyers.”

April Monthly Market Comparison

The month of April brought Houston’s overall housing market largely negative results when all listing categories are compared to April of 2010. Total property sales, total dollar volume and both average and median prices declined on a year-over-year basis.

Month-end pending sales for April totaled 3,745, down 18.8 percent from last year. That suggests the likelihood of lower demand when the May figures are totaled. The number of available properties, or active listings, at the end of April rose 5.8 percent from April 2010 to 51,694. The increase in available housing pushed the April inventory of single-family homes to 7.8 months compared to 6.5 months one year earlier. That means that it would take 7.8 months to sell all the single-family homes on the market based on sales activity over the past year. The figure still compares favorably to the national inventory of single-family homes of 8.4 months reported by the National Association of REALTORS® (NAR).

CATEGORIES	APRIL 2010	APRIL 2011	PERCENT CHANGE
Total property sales	6,288	5,534	-12.0%
Total dollar volume	$1,236,932,669	$1,078,640,018	-12.8%
Total active listings	48,869	51,694	5.8%
Total pending sales	4,613	3,745	-18.8%
Single-family home sales	5,391	4,625	-14.2%
Single-family average sales price	$203,737	$202,545	-0.6%
Single-family median sales price	$151,260	$148,000	-2.2%
Months inventory*	6.5	7.8	20.6%

* 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.

Townhouse/Condominium Update

Lease Property Update

Houston Real Estate Milestones in April

When compared to April 2009, a year with no unusual market factors such as Hurricane Ike in 2008 and the 2010 tax credit, single-family home sales were up 10.1 percent;

Single-family home rentals rose 27.9 percent;

Townhouse/condominium rentals increased 27.1 percent;

7.8 months inventory of single-family homes compares favorably to the national average of 8.4 months.

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 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 26,000-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.