Note: Due to the large volume of homes sold, I usually need two months to compile data. So in November, I'll be using September data, obtained from the Houston Association of Realtors.
Although the whole nation, including Houston, has been affected by the economy and bad debt,the problems have affected Houston housing much less than most other areas of the country. According to a Builder magazine March 2009 article, Houston tops the list of the nation's healthiest housing markets. Here's a little bit of history: The year 2007 was the second best year in Houston on record based on the HAR stats. Total property sales were lower in 2007 than in 2006, but total dollar volume was a record high. So in a nutshell, less homes were sold, but for more money.
This trend continued in 2008, until October, when both total sales and average prices declined. This was probably a result of both the troubled economy and Hurricane Ike. Since then, both stats have continued to be less than those from the previous year, partially due to the fact that many of the sales have been foreclosures at below market prices. However in September 2009 total single family home sales increased 32.0% from September 2008. The main reason is that real estate and many other services were basically shut down for several weeks following the hurricane in 2008. However housing sales have been improving this year. The September 2009 average sales price decreased from last year by 1.6% to $205,925. The median price which is a price where half the homes sold for more and half sold for less was $156,200, a 0.2% increase from September 2008, the fifth straight monthly increase. Foreclosures accounted for 18.6% of sales from a high of 34% in January.
Townhomes and condo September sales increased 20.4% in total sold from September 2008. In September 2009, the average sale price was $157,776, a 2.1% decrease from last year.
Demand for rentals have increased in single family homes and about the same for townhomes.
In closing, the Houston housing market is still stronger in pricing than other areas of the country, although the foreclosures, more stringent lending requirements, lower oil prices and poor economy have affected us. Our employment numbers and cost of living are considered some of the best in the country. Houston's favorable job and housing market have been mentioned in recent issues of BusinessWeek, Financial Times, Newsweek, Chicago Tribune, Washington Post, and Kiplinger's Personal Finance. NAR's chief economist, Dr. Lawrence Yun has predicted that Houston and Denver would be the top US cities in home price performance in 2009. In Houston, in recent years, you have been able to purchase a home for less than in many other cities and the value has increased. According to the National Association of Realtors, Houston's current median sales price for a single family home is $156,200 compared to the national average of $177,500. Month's inventory in Houston is 6.2 months compared to the national average of 8.5 months. This indicates the great value of living in Houston. If your credit is good and you look on the bright side, interest rates have declined to 50 year lows and the inventory is up, making this a good time to buy.
The new stimulus package has been extended until April 30, 2009 and the income limits to participate have been increased. This help first time homebuyers in 2009 up to $8000 in tax credit and the repayment provision has been eliminated. In Texas, you may be able to use your stimulus money for downpayment and closing costs. In addition, a new program has begun which could give folks up to $6500 if they buy a new home after living in their existing home for 5 years. Please call me for details, but the tax credit is good for homes priced up to $800,000. If interest rates begin to increase I've read that 1% increase in interest rates will wipe out a 10% reduction in cost, so if you have been waiting to buy at the bottom, it's something to consider.
Location Characteristics: Known as both the Bayou City and Space City, Houston was founded in 1836 and named after General Sam Houston. With a population of close to 2 million, it's the 4th largest city in the United States. The city has been a dynamic center of business since the early 1900s and is also the leader in space technology, being home to NASA and the Johnson Space Center. The port area is thriving and connected to the city by the Houston Ship Channel. Other well known areas are Interstate 10's Energy Corridor, the Galleria, and the world class Texas Medical Center. Houston's feel is diverse, with both a high rise skyline and waterways like the Buffalo Bayou, which winds through the city.
Recently, downtown Houston has been transferred into a dynamic area of the city for both entertainment and residential living. Many new lofts and townhomes have been built in and near downtown and other buildings have been converted from commercial to residential use.
Houston has major league football, baseball, basketball ( men's and women's), and soccer teams, as well as AHL hockey. It also has separate horse and greyhound racing tracks.
For the theatre lovers, Houston is one of the few cities that has permanent ballet, orchestra, opera, and theatre companies.
Houston offers most everything you could possibly desire in real estate.
