Houston's Real Estate Market Enjoys 2nd Consecutive Month of Positive Movement in October

HOUSTON — (November 19, 2009) — The lingering effects of Hurricane Ike last October 2008 combined with tax credit incentives have produced positive numbers for the Houston real estate market in October.

For the second month in a row, both property sales volume and pricing recorded gains.  According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), October volume of single-family home sales across the greater Houston area rose 13.8% compared to October 2008.  Total property sales climbed 14.1% in October on a year-over-year basis.

At $149,000, the October single-family home median price* rose 5.0% from one year earlier, representing the sixth straight monthly increase in median price.  The average price of a single-family home in Houston was $198,639, up 3.2% last month versus October 2008.  Both figures reached the highest levels ever for a month of October in Houston. (*The median price represents the figure at which half of the homes sold for more and half sold for less.)

Foreclosed property sales were flat month-over-month in October, making up 18.6% of all single-family home sales in the Houston area, but down compared to 25.8% in October 2008 and the 12-month peak of 34% in January of this year.  The median price of October foreclosure sales reported in the Multiple Listing Service (MLS) rose 3.8% from $88,293 on a year-over-year basis.

Sales of all property types in Houston for October totaled 5,716, up 14.1% compared to October 2008. Total dollar volume for properties sold during the month was $1.0 billion versus $942 million one year earlier, representing an increase of 15.9%.

Quoting HAR Chair, Vicki Fullerton, "Hurricane Ike had a lasting effect on the greater Houston real estate market last fall, so it's no surprise to have the kind of year-over-year improvement we've now seen for two months in a row.  Many Houston REALTORS® have reported that the first-time homebuyer tax credit was extremely effective at drawing consumers to the marketplace, and we believe momentum will build with the federal government's extended and expanded incentive program."  (Click here for a comprehensive review of the current $8,000 tax credit & the extended and expanded $6,500 tax credit.)

October Monthly Market Comparison:

All Categories October 2008 October 2009 Percent Change
Total property sales 5,010 5,716 14.1%
Total dollar volume $942,371,320 $1,092,415,904 15.9%
Average single-family sales price $192,453 $198,639 3.2%
Median single-family sales price* $141,950 $149,000 5.0%
Total Active listings 49,016 45,424 -7.3%
Total Pending sales 3,579 3,673 2.6%
Months inventory** 6.3 6.1 -2.8%

  * The median price is determined by half of the homes sold for more and half sold for less.

** 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.

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