Barbara Robin - The Woodlands Real Estate - Search for Homes!

HOUSTON — (March 18, 2008) — Property sales across greater Houston slid for the sixth consecutive month in February, but the decline was not as steep as January’s. February sales of single-family homes dipped to the lowest level since January 2007, according to statistics released by the Houston Association of REALTORS® (HAR), but the prices of those homes rose.

Total property sales for February 2008 registered 5,266, which represents a 10.2 percent drop compared to February 2007; it’s an improvement over last month’s 17.2 percent fall. Properties sold during the month totaled just over $1 billion compared to $1.1 billion in sales one year earlier, a 7.9 percent decline. The average price of a single-family home rose 5.6 percent last month from February 2007 to $206,140, representing the biggest increase since last August. The median price of a single-family home increased 3.1 percent to $151,430.

“Houston continues to feel the ripple effects of the national mortgage crisis,” said Michael Levitin, HAR Chairman and principal of HTownRealty.com. “However, many area Realtors are actually reporting brisk sales, which supports our contention that real estate is local, meaning some parts of town are doing well and others not so well. For Sale signs have gone up in many neighborhoods in recent weeks and sales of luxury homes remain high, so we’re hopeful that the overall numbers will soon show signs of improvement. With interest rates at historic lows, pricing that’s affordable and a good selection of inventory, this is still an excellent time for home buyers to invest.”

February Monthly Market Comparison
All listing categories combined, Houston’s overall housing market in February saw mixed results. Both average and median single-family home sales prices rose on a year-over-year basis while total property sales and total dollar volume fell.

The number of available homes (active listings) at the end of February was 51,308 properties, a 12.8 percent increase over February 2007. The figure was up 599 properties from January 2008, reflecting the sales slowdown, but only about half the increase observed between December 2007 and January 2008.

Month-end pending sales – those listings expected to close within the next 30 days – reached 4,323, which was down 10.1 percent from last year and signals another likely decline in sales next month, based on volatility in sales figures. The month’s inventory of single-family homes for February came in at 6.1 months, a slight increase from January’s 6.0-month figure. This compares to the February 2007 single-family homes inventory of 5.1 months.

ALL CATEGORIES	February 2007	February 2008	PERCENT CHANGE
Total property sales	6,058	5,266	-13.1%
Total dollar volume	$1,141,637,135	$1,051,418,592	-7.9%
Average single-family sales price	$195,148	$206,140	+5.6%
Median single-family sales price	$146,940	$151,430	+3.1%
Total active listings	45,466	51,308	+12.8%
Total pending sales	4,807	4,323	-10.1%
Months inventory*	5.1	6.1	+18.3%

* 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
The average sales price for single-family homes was $206,140 in February, up 5.6 percent versus the same period last year when it was $195,148. The overall median price of single-family homes in February was $151,430 compared to the national single-family median price of $201,100, according to statistics released by the National Association of REALTORS®. These data continue to illustrate the higher value and lower cost of living found in the Houston market.

Additionally, total sales of single-family homes in Houston in February came in at 4,431, which was 10.2 percent lower than February 2007 but a slight improvement over last month’s 12 percent decline.

Improved year-over-year sales activity continued to be observed in Houston’s low- and high-end single-family home markets, with increases of 11.1 percent among homes priced below $80,000 and 11.0 percent among homes priced above $500,000.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In February 2008, existing single-family home sales totaled 3,646, which was a 10.0 percent drop from February 2007. At $141,500, the median sales price for existing homes in the Houston area was up 1.8 percent compared to the same period last year. The average sales price of $190,553 for the month represented an increase of 5.0 percent from last year’s level.

The Days on Market statistic for February remained unchanged from 92 a month earlier but in excess of the 84 days recorded in February 2007.

Townhouse/Condo Update
At $129,900, the median price in the townhouse/condominium segment in Houston rose 3.9 percent from February 2007 to 2008. The average sales price for which a townhouse or condominium sold in the greater Houston area was $163,641 last month, flat compared to February 2007.

However, there was a downturn in the number of townhouses and condominiums that sold in February. In the greater Houston area, 442 units were sold last month versus 519 properties in February 2007, translating to a 14.8 percent decrease in year-over-year sales.

Houston Real Estate Milestones in February

Sixth consecutive monthly decline in property sales;
Average and median single-family home prices increased by 5.6 and 3.1 percent, respectively;
Sales of single-family homes below $80,000 and above $500,000 remained up.

The computerized Multiple Listing Service of the Houston Association of Realtors® includes residential properties and new homes listed by 26,000 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 53,000 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 27,000-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 individual membership trade association in Houston, as well as the second largest local association/board of Realtors® in the United States.

Post a Comment : Author: Barbara Robin

Single-Family Home Sales in Houston - Feb. YTD 2008

Posted on March 11, 2008

Single-Family home sales in Houston are down by 11% from year-to-date February 2007, with 8,058 recorded MLS sales, according to the Houston Association of Realtors Multiple Listing Service. While the Houston market has yet to catch up to the stellar years of 2006 and 2007, it is still ahead of 2005 sales by ironically, 11%.

The year 2005 was one of the greatest real estate years in Houston history and in 2006, it was referred to as the second best year, next to 2006. Then in 2007, 2005 became the third best year. I believe 2008 will be the third greatest year in residential history and will push 2005 to fourth place.

As sales go, so go the dollar volume sales and while Houston has experienced over $1.6 billion in dollar volume sales year-to-date, that is still 6% less than the second greatest year on record, 2007.

Average sales price, on the other hand, is up 5% and is currently $198,396, one of the highest average sales prices on record. Average sales prices are effected by extremes and closing sales prices in Houston are undergoing some interesting dynamics. While numbers of sales are down in most price ranges below $400,000, the following sales price classes are up in number of units closed YTD in Houston:

Homes priced $600,000-699,999 are up 21%
Homes priced $700,000-799,999 are up 19%
$800,000-899,999 are up 4%
$900,000-999,999 are up 24%
$1,000,000 and up are up 37%

Homes priced below $200,000 have been most effected by the sub-prime mortgage meltdown and even more so by stringent credit requirements. This is a market that is most likely to receive a positive impact from Congress passing the Economic Stimulus Package, which among many things, increases the loan limit of FHA . It is too soon to foresee what impact the Economic Stimulus Package will have on the Houston economy and real estate market, however the National Associaton of REALTORS economists believe it will have a positive national impact.

The median sales price in Houston year-to-date is $145,940 and that figure is up by 1% from this time last year. It takes an average of 92 days to sell a home in Houston and that figure is up by 12%, which happens to be the same percentage increase of current listings on the market. Active single-family homes on the market [listings] are up by 12% over this time last year with 34,725 homes listed in the HAR Multiple Listing Service.

Pending sales recorded year-to-date are 7,231, which is down by 9% over this time last year.

Houston is experiencing a great market; it is just not experiencing the record market seen over the previous two years. To put this into perspective,

Average sales prices are up in Houston over 2005 by 13%
Median sales prices in Houston are up over 2005 by 8.18%
Pending sales [buyer demand] are up over 2005 by 18.4%
Sales are up in Houston over 2005 by 11% as mentioned previously.

The real estate market is all relative. In 2005, we thought real estate could not get any better and yet, year after year, we saw it get better. This year will be better than 2005, however, it is difficult to exceed a record year every year. We are all fortunate to live, work and play in Houston, where real estate is healthy and home values are stable and in some cases, rising. California and Florida would give anything for a market like this!

Data provided by the Houston Association of Realtors Multiple Listing Service and written by Barbara Robin, ABR, CRS, e-Pro, GRI - Prudential Gary Greene, Realtors.

1 Comment : Author: Barbara Robin

2008 Will be Great for Houston Real Estate

Posted on March 3, 2008

Finally, Nancy Sarnoff in an article written for the Houston Chronicle and appearing in the business section on January 8, 2008 admitted that this might be a great time to buy a home due to the fact that prices may never be this low again, http://www.chron.com/disp/story.mpl/business/realestate/5435604.html

While it is hard to top the 2006 real estate market, which was the FIRST peak home sales year in the new Millennium, the Houston market is performing much better than it did in 2005, the best year in Houston residential real estate history, up until 2006.

4,960 more units have sold through in YTD November 2007 than in YTD November 2005
$2.1 billion more in dollar volume sold in 2007 than in 2005
Average sales price is 9.8% higher in 2007 than in 2005
7.1% higher median sales price in 2007 than in 2005
Days on the Market have declined since 2005 by 4 days
Average price per square foot has increased 8%
Active listings are up over YTD November 2005 by 15.5%

The only metric that is not more positive than 2005 is an increase in the number of homes on the market. Not to worry,

All of us at Prudential Gary Greene, Realtors can overcome the increased competition by positioning our sellers' homes using

The Power of Staging [helps sell your home faster and for more money]
Multi-photo marketing that attracts buyers on the WWW [where 84% of buyers are now] and an
Internet Marketing Menu of your home's exposure that is second to none.

As we enter the beginning of 2008, we believe that 2007 will go down in history as the second best year in Houston residential history. Most importantly, we believe in Houston! With the energy sector, the expanding Medical Center, the Port and all of the auxiliary businesses that support those job sectors, Houston is poised to create jobs and bring more people to our wonderful city. This year may very well be the year that everyone looks back on and wishes they had bought more real estate. In any case, we believe it will be great in 2008!

Barbara Robin

Let Me WRK 4 U!

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281-467-5013

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Wall Street Journal Casts Positive Light on Houston Real Estate

Posted on March 3, 2008

The Wall Street Journal, in an article dated January 24th issued this warning, "Housing Slump Starts to Hit Stronger Cities". Houston was a city expressed in the article as strong in real estate and strong in employment outlook.! The article focused on the fact that there were a few exceptional cities to the real estate slump where up until now had not been effected by the real estate slump, but areas like the Northwest, North Carolina and now, even Manhattan are feeling the effects.

The entire article can be viewed online at:

http://online.wsj.com/article/SB120111917285710781.html?mod=home_personal_journal_left

It is so refreshing to read articles that help distinguish the Houston Real Estate Market from so many other markets that are depreciating and/or slowing down.

There is no question that Houston is in a short-term period where home prices most likely will not appreciate. However, the huge expansion of the Texas Medical Center is expected to bring international knowledge workers to town. In addition, Houston is an Energy Epicenter that is expanding and auxiliary businesses will also emerge to support these industries. The Houston job market will get even stronger in the future. Whenever the job market is strong, so is the housing market.

We, at Prudential Gary Greene, Realtors believe that those that purchase homes this year will be in a position to capitalize on future appreciation in home values that will be brought on by more jobs being created in the aforementioned industries, not to mention the Port of Houston.

While other cities undergo a painful economic correction this year, Houston will undergo the absorption of additional inventory. This merely means a slowing or flattening of home price appreciation, however, it also spells opportunity for first-time and move-up buyers to purchase at prices that will grow in appreciation in future years. Interest rates are low and home prices are the most affordable in the nation. It is precisely this type of market where an investment in a home makes the most sense. Home sellers can also capitalize on making a move this year. This year is a moment in time when the opportunity to move-up or down-size has never been better in terms of price, selection and interest rates.

In the Wall Street Journal, a chart displays 28 cities and Houston is ranked as one of the strongest of the 28 cities. For the full chart, go to the website link above, but here is Houston's real estate and market strength pulled directly from the Wall Street Journal:

Metro Area	Overall Strength of Metro Area	Change in Housing Inventory	Months Supply	Price Change	Employment Outlook
Houston	STRONG	12%	6	N/A	STRONG

Now, we invite you to review the entire chart in the Wall Street Journal and we ask, where would be the best place for you to make an investment in real estate? Houston has one of the best outlooks of any city mentioned.

Barbara Robin

Let Me WRK 4 U!

Email Me!

281-467-5013

Post a Comment : Author: Barbara Robin

The Case Against Waiting to Buy a Home

Posted on March 3, 2008

Our congratulations go out to Dan Kadlec, author of the February 2008 article in Time Magazine, which builds a case for why you should consider buying a home now. http://www.time.com/time/magazine/article/0,9171,1713483,00.html

The article refers to a famous Money Manager, Peter Lynch whose most recent "Lynchism" today is this gem: "Ignore the Headlines!" This is also the title of the article. Lynch observed in the magazine article, "in spite of all the great and minor calamities that have occurred..all the thousands of reasons that the world might be coming to an end-owning stocks has continued to be twice as rewarding as owning bonds."

Lynch goes on to explain that a top reason to not buy stocks is if you don't own a home-in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. In the article through a spokesman, Lynch reaffirmed the following views to the author of the article, Dan Kadlec:

"When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger, excel in the long run. As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets." "

While most would agree that real estate blood is not running in the streets of Houston, there also is no indication of home price deceleration in Houston, as is seen in many parts of the country. There is admittedly, very little home price appreciation. It is the calm before the storm. The President of the Houston-Galveston Area Council projected during a Fort Bend Chamber of Commerce meeting that by 2030, Houston will add population equivalent to the size of the City of Los Angeles and the council is preparing for that growth now. Growth and job opportunities in Houston will continue for some time and within the next 30 years, you can expect real estate to flourish along with that huge influx of population.

Even if the Greater Houston area does not experience that large of a population growth, one thing is inevitable - interest rates will rise within that time frame. The article says that "in the event the price of homes falls farther, most likely anything gained by waiting for a further drop in price might be offset by rising finance costs."

Dan Kadlec, the author gives a scenario of a home priced today at $218,900 where 20% is down payment and the interest rate is 5.5%, so the monthly payment is $994.31. If the home drops an additional 10% and the economy picks up, the Fed would start to raise the rates to 6%, and your monthly payment for the same house at a 10% lower price is now $994.94. "Their conclusion: If you wait a year to buy a home, you won't save anything and you spent a year living someplace you would rather not." Not a good scenario for homes in other parts of the country where home prices are projected to fall even farther. As for Houston, the situation could be far more serious. It is inevitable that interest rates will rise. Add to that fact another scenario - local area governments are projecting a huge growth in population for the metropolitan area. This will put pressure on housing demand and home prices almost always rise as a result.

We concur with the author and Peter Lynch that now is the time to capitalize on low interest rates and purchase now, as opposed to later when borrowing will cost more. However, add to that premise a population growth factor, and it gives those sitting on the fence a reason to lean on one they own.

Barbara Robin

Let Me WRK 4 U!

Email Me!

281-467-5013

Post a Comment : Author: Barbara Robin

Woodlands Online

Posted on March 3, 2008

Have something you need to sell? Looking for something to buy? Need information about The Woodlands Business Community? Go to Woodlands Online for help!

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