Katy Texas Real Estate Blog

Bob Miles

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We just got back from our annual Prudential Real Estate Convention and were happy that not only did our Gary Greene brokers receive the broker of the year...but Prudential Gary Greene gave over $338,000 to The Sunshine Kids.  In fact the Katy office was proud to giver over $30,000! 

So...How Did Houston Real Estate Finish the Year?

Houston finished the year down by only 7% in single-family total units sold and that is a miraculous recovery from February when year-to-date, we were looking at a 24% decline.  It also finished with a 1% increase in median sales price and anyone in the nation would envy that position.  

A Great November!

November was a great month for Houston real estate!

Every market indicator for the month was positive, except pending sales which dipped 15% below last November.

 

Houston Milestone: 

November YTD 2009 was the first month in 2009 where sales improved from double-digit declines to single-digit decline.  Single-family home sales year-to-date are now only 8% below last year – quite an improvement from YTD February sales which were 24% below 2008. 

H-E-B is sponsoring the first Illuminated Art Car Parade on Nov. 28 beginning at 9 p.m. on Avenida de las Americas near the George R. Brown Convention Center.

Dubbed “Gloworama,” the parade will feature a procession of illuminated art cars and a 3-D light show projected on the exterior of the convention center.

The Invincible Czars will perform “Nutcracker Suite” in Discovery Green before the event, and there will be a balcony viewing party on top of the convention center. A late-night event called AfterGlow will allow Houstonians to party into the wee hours of the night with live music.

The parade is also sponsored by the Houston Downtown Alliance, Art Cars of Houston, ABC-13 KTRK, City of Houston Convention & Entertainment Facilities of Houston, City of Houston through the Houston Arts Alliance, Bud Light, LD Systems, Continental Airlines Inc. (NYSE: CAL) and Autorama.

Houston Business Journal Article on best-performing cities list

Houston makes best-performing city list

Houston Business Journal

The Houston-Sugar Land-Baytown area moved up 11 spaces to claim the fifth spot on this year's Milken Institute/Greenstreet Real Estate Partners Best Performing Cities Index.

The city was also the largest in the Top 10, according to the index.

Austin-Round Rock area took the top spot among the 200 largest metro areas, followed by Killeen-Fort Hood-Temple; Salt Lake City; and McAllen-Edinburg-Mission. Rounding out the list were Durham, N.C.; Olympia, Wash.; Huntsville, Ala.; Lafayette, La.; and Raleigh-Cary, N.C.

Houston ranked seventh in both job growth and wage and salary growth for the one-year period examined by the index. Its performance was based on both a low cost of doing business and its role as a major center for health services and the oil and gas industry.

The index ranks U.S. metro areas based on their ability to create and sustain jobs, measuring employment, salary growth and technology output.

“Texas’ strong position in our best performing cities study demonstrates that a favorable business climate, combined with a low-cost/low-tax environment, is highly supportive of job creation,” said Ross DeVol, senior economist at the Milken Institute and lead author of the report. “The state has diversified its economy by fostering several key high-tech clusters, and the passage of Proposition 4, allocating $500 million in funding for research universities, will make Texas an even more formidable competitor in the future.”

How "hot" is your area of town?

Houston Hotness Index Report - October 2009

HAR MLS HOTNESS INDEX OCTOBER 2009          
Rank Area Area Name Hotness Ratio Pending Sales Sales    Active Listings Months Inventory 
1 25 Far West 19.4 173 244 892 4.1
2 28 Alief Area 19.3 64 74 332 5.9
3 12 North 18.7 121 175 647 4.4
4 11 Near North 18.6 75 94 404 5.4
5 36 South Katy Area 18.3 127 222 693 3.1
6 32 Far Northeast 17.8 71 98 400 4.8
7 19 Montgomery County Northeast 15.8 70 85 444 7.1
8 38 Ft. Bend East 15.3 107 132 698 5.6
9 8 Bear Creek 15.1 106 193 703 4.6
10 37 Ft. Bend West 14.9 116 166 776 4.9
11 21 Bellaire West 14.8 12 20 81 4.2
12 35 Hempstead West 14.7 84 100 572 5.3
13 34 Aldine-Westfield Area 14.1 25 18 177 8.4
14 55 Wharton County 14 16 12 114 11.1
15 29 Ft. Bend Central 13.9 80 138 576 4.8
16 10 Hempstead East 13.8 97 160 702 4.8
17 3 Southeast 13.3 98 148 735 5.7
18 14 Far Northwest 12.9 99 142 765 5.8
19 1 Northeast 12.8 133 194 1037 5.7
20 2 East 12.6 141 157 1115 7.3
21 30 Ft. Bend Southwest 12.6 74 90 587 5.9
22 6 Pasadena Area 12 51 92 424 5.1
23 13 Northwest 11.8 124 192 1050 5.7
24 7 Clear Lake Area 11.4 69 139 607 4.5
25 26 Waller County 11.3 17 14 151 9.5
26 40 Montgomery County Southeast 10.8 33 60 305 7.5
27 5 Brazoria County 10.4 138 268 1329 6.1
28 20 Bellaire South 10 36 75 360 4.7
29 15 Montgomery County Southwest 9.8 149 279 1521 6.0
30 4 South 8.9 27 30 302 10.3
31 53 Chambers County 8.6 13 18 152 7.6
32 18 South Central 8.5 11 18 130 6.7
33 33 Galveston County 7.6 176 257 2309 8.6
34 43 Walker County 7.2 13 30 181 8.4
35 9 Central North 7.2 74 159 1031 6.8
36 52 Liberty County 7.1 16 20 225 9.2
37 31 West 7 25 61 358 6.3
38 23 Memorial 6.4 21 50 328 7.7
39 42 Trinity County 5.8 7 13 120 16.9
40 39 Montgomery County Northwest 5.8 44 86 765 8.2
41 24 Spring Branch 5.2 17 48 326 6.8
42 16 Central 4.7 26 48 550 11.3
43 22 Central West 4.6 16 48 349 10.3
44 44 Polk County 4.1 14 33 343 13.8
45 17 Southwest 3.5 22 74 635 9.1
46 64 San Jacinto County 3.3 6 17 184 13.3
47 57 Austin County 2.3 4 14 176 14.4

Houston Improve Sales

Houston Single-Family Home Sales Improve 81% Since June

The 2009-2010 IRS Tax Credit for home buyers was extended and expanded in November.  The new expiration date is April 30, 2010 and the tax credit now includes current homeowners, not just First-Time Homebuyers and income limits were expanded to $225,000.  For detailed information on this home buyer advantage, please click here.

 With new incentives in hand, every month that passes in 2009, shows great improvement in comparison to the previous months’.  The table below shows the difference between the market experienced in February, June and October YTD 2009.   As you can see, as 2009 progresses, the single-family housing market is slowly marching toward a healthier market.

 

Houston Market Improvement Comparison 2009 of Single-Family Homes

Market Indicator

February ‘09

June ‘09

Oct. ‘09

% Change from

June ‘09

# units sold

-24%

-20%

-11%

+81%

Dollar volume sold

-33%

-24%

-14%

+71%

Average Sales Price

-12%

-6%

-4%

+50%

Median Sales Price

-8%

-2%

-1%

+50%

# of Pending Sales

-23%

-21%

-14%

+50%

Active Listings

-20%

-22%

-21%

-.46%

  A summary of October YTD market statistics compared to last year:

  • Sales are down from October YTD 2008 by 11% with 45,391 single-family homes.
  • Dollar volume sold is down from October YTD 2008 by 14% with $9,202,482,156.
  • Average sales price is currently $202,738, down by 4%.
  • Median sales price is $153,000, down by 1% [half of the homes sold above and half below this midpoint range.
  • # of contracts written [pending] are 31,101 and that represents 14% fewer than found last year.
  • Active listings, a metric that is good if on a decline, are currently 27,758 or 21% less than last year.  This is also a metric that in Houston is the exact opposite heard frequently in the national news.

 The newly extended Homebuyer IRS Tax Credit should stimulate sales, particularly in the Spring of 2010 and it will be interesting to see if inventory continues to decline as it has in recent months.  The IRS Tax Credit should boost Houston back to normal market conditions sooner than it would have on its own.  Another added benefit to increasing home sales is that economists believe that for every home that is sold, regardless of the price, a $66,000 economic multiplier effect positively impacts the local market in which the home resides.  The IRS Tax Credit is truly an economic stimulus that sparks the local economy.

 What home price classes are the hottest selling in Houston right now?  The following table indicates by price class the hottest selling price ranges in Houston in 2009:

 

 

 

Top Ten Selling Price Classes

Houston Single-Family Real Estate

Third Quarter YTD 2009

Price Class

Sales Year to Date

Active Listings

Months of Inventory

1. $200,000-$249,999

4,712

2,666

5.9

2. $250,000-$299,999

3,220

2,176

7.0

3. $300,000-$399,999

3,213

2,534

8.1

4. $130,000-$139,999

2,557

1,129

4.5

5. $120,000-$129,999

2,541

1,296

5.1

6. $110,000-$119,999

2,274

1,296

5.7

7. $140,000-$149,999

2,214

1,182

5.5

8. $150,000-$159,999

2,181

1,103

5.2

9. $90,000-$99,999

2,027

1,155

5.8

10. $160,000-$169,999

1,981

1,004

5.2

 

 

As you can see, the top 10 selling price classes in Houston range from a low of $90,000 to a high of $399,000, and therein lies the largest demand for single-family homes in the Houston Multiple Listing Service. 

 

Prudential Gary Greene, Realtors® feels certain that fourth quarter 2009 sales will exceed fourth quarter 2008, which was interrupted by a devastating hurricane, economic uncertainty and a barrage of bad news.  The Houston market has experienced a loss of confidence and uncertainty of the future, especially during the months following Hurricane Ike.  The market improvement comparison table above indicates that our market is on the road to recovery.  This market also spells opportunity, particularly with the IRS Tax Credit, to purchase a home before Houston experiences an upswing in the market, which inevitably will happen.  The best time to capitalize on a “bounce-back” is before it bounces back.

Data derived from the Houston Association of Realtors® Real Estate Information Services and compiled by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®.  Market statistics occurring outside the HAR MLS are not reflected in this report.

Top City to Start a Small Business

Fortune: Houston a top city to launch a small business

Houston Business Journal

Houston may have a bad reputation for its hot weather and heavy traffic, but when it comes to starting a small business, the city is one cool kid.

Fortune Small Business has ranked the Bayou City No. 4 among the top large metro areas for business startups.

Fortune raves about Houston’s ability to weather the current recession, the addition of 500,000 new jobs over the past five years, and the city government’s work on curbing pollution, diversifying the economy and investing in public transportation. And of course, there’s the Texas Medical Center and the city’s ranking as the largest municipal purchaser of green power in the country, according to the Environmental Protection Agency.

However, Fortune did bring up that pesky Mother Nature issue, and the fact that businesses are now having a tough time finding hurricane insurance.

But, weather didn’t stop Fortune from naming tornado-prone Oklahoma City as the best city for starting a small business. Despite its weather issues, OKC received kudos for its low foreclosure rate as well as the large number of local investors just itching to lend money. Rounding out the top four were Pittsburgh and Raleigh, N.C.

Houston ranked among top four U.S. Cities to earn a living

Houston is ranked among the top four U.S. cities in which to earn a living, according to Forbes Magazine, (article written September 3, 2009).  Three of the top four cities were located in Texas.  According to Forbes, Dallas is the most desirable city in the nation to live (of course, we believe that Dallas is second to Houston).  Houston was ranked second and Austin was ranked third.  Among the best reasons to take up residence in Houston or Dallas, according to Forbes, is the number of top-ranked companies headquartered in each city:  38 and 15, respectively.

The rankings were determined by median income, cost of living, job growth and the quality of the business environment.

Most importantly, the magazine stated that "if you are worried about the economic situation changing in Houston, Dallas or Austin, in the next few years, don't be.  As health care, technology and energy take more employees into their ranks, cities that specialize in these core industries will continue to draw skilled workers and dole out attractive compensations."

According to Forbes.com, "Expect this list to look similar next year--but you might not need it if by then you've moved to Texas for a job."

Tips for Going Green

5 Tips For Going Green

Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we’ve become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being “green” with these five tips:

 

1. Change Your Light Bulbs

By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.

 

2. Buy ENERGY STAR® Appliances

ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.

 

3. Seal Up

Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won’t shrink or crack, creating less waste.

 

4. Use Less Water

Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.

 

5. Adjust the Thermostat

When adjusting your home’s thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.

 

Going green doesn’t have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a “greener” place.