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 several articles I've read, Houston tops or is near the top of the list of the nation's healthiest housing markets.
The following is a brief history of single family home sales in Houston. From October 2008 until September 2009 both total sales and average prices declined from the previous year as they did in most if not all cities. 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. In October 2009, total single family home sales increased 13.8 % from October 2008 and in November 2009 sales increased 32.8 % over last November. I'm sure that the " Ike Effect" played a factor in this statistic also. Then a trend developed of prices increasing over the previous year, although number of homes sold somtimes declined. The tax credit for first time home buyers resulted in more homes being bought before the end of April, which it was supposed to do. Once it ended, one would have guessed that sales volumes would decline, which they did starting in July 2010. The good statistic is that prices stayed fairly stable, even increased a bit and in January 2011, volume of homes sold increased for the first time since June 2010. For the second quarter of 2011, the sales volumes were less than last year, but this is explained by the increased sales generated by the first time home buyers tax credit program in place last year, which is not available this year.
In September 2011, single family home sales volume increased 16.9% from September 2010. It is explained in part by the fact that the buyers tax credit had expired at this time last year. More folks bought earlier in 2010. Broken down, all price segments increased in sales volume, with the largest increase-26.8%- coming from those priced between $250,000-$500,000. The September 2011 average sales price increased from last year by 0.4 % to $213,334. The median price which is a price where half the homes sold for more and half sold for less was $157,500, a 1.6% increase over last year. Both prices are the highest levels ever in September.
Townhomes and condo September 2011 sales increased 14.0 % in total sold from September 2010. In September 2011, the average sale price was $152,275, a 0.9 % decrease from September 2010.
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. 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 $157,500 compared to the national average of $168,300.The single family month's inventory in Houston is 6.8 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 near 50 year lows and the inventory is up, making this a great time to buy. Interest rates are at historically low rates-if you haven't refinanced lately, you might consider it. 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. I read in the Houson Chronicle that "the experts" are predicting that Texas will be the first state to recover from the economic downturn.
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.
