Market experts Celeste Creager and Susan Smith are reporting that sales over the past year in Houston have decreased almost 20 percent, which has contributed to an overall increase in inventory.

But at the same time, the average and median home price in Greater Houston has increased.

So what's the explanation?

Celeste and Susan say the more expensive homes are selling -- if they are priced right -- because they're generally not a first-home purchase, and these buyers have an easier time securing financing.

On the flip side, entry-level homes are challenged by tightened credit, buyers with lower scores and limited funds for lender-required down payments.

And Celeste and Susan think the trend of tightening credit will continue.

Lenders will continue to be conservative, they say, and the days of zero down are virtually over.

The good news, though, is that Houston isn't seeing the same price drops as other markets in the nation.

Creager and Smith attribute this resilience to Houston's vibrant economy and steadily increasing job market.

For more information on this market contact Celeste Creager and Susan Smith at:
BayouCityBrokers.com.

Published: May 22, 2008

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