Houston Real Estate Market Update

Houston Market Real Estate Report including surrounding areas:

June YTD 2008 – Single-family home sales

 

Anyone sitting on the real estate sidelines from a media-induced coma needs to wake up and smell the future in Houston, Texas.  Yes, the Houston residential real estate market is experiencing a temporary lull as shown by the statistics below, but it is not from a lack of a robust job market and economy. Houston is the fourth largest city in the United States, located in a culturally diverse metropolitan region, which is home to 5.6 million residents.  The city is growing at twice the national pace.  It has one of the lowest costs of living, an educated workforce and is home to 88 consulates, which is a testament to its international influence.

For a concise picture of the Houston real estate market, go to www.houston.org/rankings and you will find 26 national publication rankings of first place in job growth, business climate, health care and lower cost of  living.  The factors ranked are key drivers of any real estate market, and one of the reasons that despite a temporary slow down, Houston still boasts a positive median and average sales price. It also indicates that today is probably the best time to invest in real estate in Houston.

 

 

Real Estate Reality

June YTD

2008

%Yr. Ago’07

June YTD

2005

% Yr. Ago’04

2008 vs. 2005

# Sales YTD June

30,857

-13%

31,067

8%

.66%

Dollar Volume Sales

$6.466B

-11%

$5.734B

12%

+13%

Avg. Sales Price

$209,545

2%

$184,565

4%

13.5%

Median Price

$152,000

0%

$139,500

3%

+.9%

Avg. Days on Market

85

10%

83

-1%

2.4%

Pending contracts

23,138

-13%

23,042

13%

4.166%

# of Listings

35,634

5%

30,448

7%

17.03%

 

 

I predict that this year may end up the same or slightly above the third greatest year in residential history, based on the similar number of sales found June YTD 2008 as those found in June YTD 2005 and a 4.166% higher number of units pending this year than those found in 2005.  We are currently experiencing a more positive real estate market than 2005 in terms of higher dollar volume sold, higher average sales price, median sales price and pending contracts. 

Jobs, interest rates and favorable home prices drive real estate, so we have an economy poised to not only absorb the additional inventory, but to move beyond previous growth cycles and set new records. 

 

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5 Responses to Houston Real Estate Market Update

  1. Eric Hundin says:

    I found your blog on MSN Search. Nice writing. I will check back to read more.

    Eric Hundin

  2. Frank Schulte-Ladbeck says:

    It is nice to stay positive. There are many good values, but I feel that many buyers seem to think that better values are to come, and that just may not be the case.

  3. christiborden says:

    Frank,

    You hit the nail on the head. The issues that I see in our area are a direct affect of diminished buyer confidence. Many buyers are waiting by the sidelines to attempt to purchase when property values are at their lowest… which many economist feel is now, There are many indicators that even the markets that have been hit the worst are beginning to show a turnaround.

    There is a great article in the Times dated 2/25/08, that highlighted how waiting another year to purchase a home may not be the big pay off that buyers are counting on. Using their example, if a home depreciated another 10% next year when you purchase but interest rates rose a mere .5%, your note would be the same and your purchasing power less due to lending constraints. Also, lending funds may be harder to come by once Congress impliments much-needed controls on mortgage lenders. That said, Katy, TX real estate is still very strong and it is a great time to purchase your dream home.

  4. Debbie Gion says:

    I love the updates. My prayers are with you and your family. Boys, I hope your mom has had you prepare for nothing and everything is OK! Stay Safe! Aunt Debbie

  5. christiborden says:

    Thanks Deb,

    I am glad you visited, We are pretty prepared here. I am currently firing up the grill for steaks. Yes, I know there is a hurricane coming but why should I let that get in the way of a great meal?

    We love you and will keep in touch after Ike’s passage. Keep safe up there in Dallas.

    Christi, Danny, the boys and Macie

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