February Brings Robust Sales Activity to Upper Segments of the Houston Real Estate Market

Sales of homes from $250K and above give pricing another boost

HOUSTON — (March 16, 2010) — The Houston real estate market completed the second month of 2010 showing continued vitality in home prices, thanks to robust sales activity in the upper housing segments.

Overall February sales of single-family homes across the greater Houston area slid 5.8 percent compared to February 2009, according to the latest monthly data compiled by the Houston Association of REALTORS® (HAR). When broken out by segment, however, sales of single-family homes priced from $250,000 and above recorded double-digit gains. Sales of all property types declined 7.4 percent in February on a year-over-year basis.

The average price of a single-family home appreciated for the fifth straight month, reaching $203,271, up 12.3 percent versus February 2009. At $147,000, the February single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 6.5 percent from one year earlier. That represents the tenth consecutive monthly increase in median price.

Foreclosure property sales reported in the Multiple Listing Service (MLS) fell by 18.7 percent in February compared to one year earlier. The median price of February foreclosure sales rose 7.5 percent to $86,000 on a year-over-year basis.

Sales of all property types in Houston for February totaled 3,843, down 4.6 percent compared to February 2009. Total dollar volume for properties sold during the month was $747 million versus $711 million one year earlier, representing a 5.1 percent increase.

“We are encouraged by steady homebuying activity in the higher-end single-family segment, which has strengthened Houston’s already enviable real estate pricing,” said Margie Dorrance, HAR chair and principal at Keller Williams Realty Metropolitan. “We expect to see consumer interest extend to the other segments as the spring homebuying season heats up.”

February Monthly Market Comparison
The month of February brought Houston’s overall housing market mixed results when all listing categories are compared to February 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 February rose 4.3 percent from February 2009 to 46,658. That represents 1,448 more active listings than one month earlier, in January 2010, and may reflect increased activity stemming from the federal homebuyer tax credit that expires on April 30.

February’s month-end pending sales—those listings expected to close within the next 30 days—totaled 3,168, down 1.8 percent from last year. The months inventory of single-family homes for February grew to 6.3 months compared to 5.9 months one year earlier, but remains better than the national months inventory of single-family homes of 7.8 months, reported by the National Association of REALTORS® (NAR).

CATEGORIES FEBRUARY 2009 FEBRUARY 2010 PERCENT CHANGE
Total property sales 4,030 3,843 -4.6%
Total dollar volume $710,696,861 $747,032,015 5.1%
Total active listings 44,747 46,658 4.3%
Total pending sales 3,227 3,168 -1.8%
Single-family home sales 3,450 3,251 -5.8%
Average single-family sales price $180,966 $203,271 12.3%
Median single-family sales price $138,000 $147,000 6.5%
Months inventory* 5.9 6.3 7.5%

* 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

February sales of all single-family homes in Houston totaled 3,251, down 5.8 percent from February 2009. This is the Houston market’s third consecutive monthly decline in sales. However, broken out by segment, sales of single-family homes priced between $250,000 and $500,000 rose 15.8 percent in February while sales of luxury homes—those priced from $500,000 to the millions—climbed 14.9 percent. By contrast, sales of homes in the below-$80,000 segment fell 27.5 percent and those priced between $80,000 and $150,000 were unchanged.

Heightened sales activity in the higher end of the housing market drove pricing up in February. At $147,000, the median sales price for single-family homes rose for the tenth consecutive month, up 6.5 percent from February 2009. The national single-family median price reported by NAR is $163,600, 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 February was $203,271, an increase of 12.3 percent from one year earlier. That represents the fifth straight monthly jump in the average price.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In February 2010, existing home sales totaled 2,681, a 5.1 percent drop from February 2009. The median sales price rose 7.5 percent to $136,000 compared to last year. The average sales price of $189,998 increased 15.7 percent from its February 2009 level.

Townhouse/Condominium Update

The number of townhouses and condominiums that sold in February rose 8.9 percent compared to one year earlier. In the greater Houston area, 330 units were sold last month versus 303 properties in February 2009.

The median price of a townhouse/condominium edged up 2.5 percent year-over-year to $128,000. The average price was up 3.9 percent to $158,648 from February 2009 to February 2010.

Lease Property Update

Demand for single-family home rentals rose 9.9 percent in February compared to a year earlier. Year-over-year townhouse/condominium rentals shot up 20.1 percent.

Houston Real Estate Milestones in February

•The average price of a single-family home appreciated for a fifth straight month, by 12.3 percent, to $203,271;

•The median price of a single-family home rose for the tenth consecutive month, by 6.5 percent, to $147,000;

•6.3 months inventory of single-family homes compares favorably to the national average of 7.8 months;

•Townhouse/condominium sales rose 8.9 percent;

•Total dollar volume grew 5.1 percent, reaching $747 million.

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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COLLEGE STATION (Real Estate Center) – Chief Economist Dr. Mark Dotzour is crisscrossing the nation delivering his economic message and collecting valuable data for the Real Estate Center at Texas A&M University.
Among the comments he heard this week at meetings of the National Association of Business Economics in Washington, D.C., were:
• “Clearly there is virtually no threat of inflation in the next two years.”
• “There’s virtually no chance of the Fed increasing interest rates (maybe a symbolic small move aside).”
• “The last recession, the Fed waited until unemployment was 5.5 percent before tightening.”
• “We won’t get to that level for several years.”
• “The threat is for deflation across the globe, with the exception of China.”
• “China’s money supply is up 30 percent from last year. Our M3 (the Fed’s measure of the money supply) is virtually unchanged from a year ago, and available credit is less than last year.”
“The Congressional Budget Office said the United States is going to be unable to pay for the social contract with America,” said Dotzour. “It’s only a matter of when and how the adjustments for failed promises have to take place. Medicare, Medicaid and Social Security cannot be funded at current levels of spending.”

1. Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.

2. Wash your windows and screens to let more light into the interior.

3. Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.

5. Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.

6. Make minor repairs that can create a bad impression. Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.

7. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.

8. Patch holes in your driveway and reapply sealant, if applicable.

9. Clean your gutters.

10. Polish your front doorknob and door numbers.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.

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EBBY STILL PARTYING AT 99!

DALLAS (Dallas Morning News) – The buzz around town is not about the Mavericks or the Cowboys this week, but about local real estate legend Ebby Halliday and her 99th birthday.
Although her birthday is today, the celebration began Friday and will continue until tomorrow.
The founder of Ebby Halliday Realtors, which began in 1945 and is now a $4 billion business, wanted a low-key birthday, but Dallas did not think that was suitable.
The festivities began Friday night at the Dallas Mavericks game, where her favorite player, Dirk Nowitzki, presented her with an autographed team ball, and have continued on party buses, in church, at the Winspear Opera House and with lunch with T. Boone Pickens.
“If I live to be a hundred, and the celebration is any faster or more furious, I won’t be able to stand it,” Halliday said.