First-quarter real estate sales indicate Houston has pulled out of a negative sales position and displays the beginning of very positive trends. The latest market metrics correlate very closely with news from the Texas Workforce Commission that Houston-area employers added 10,300 jobs from January to February, an increase of 2,000 real job gains than is atypical for the season.  Employment is the single largest driver of home sales.

Last year in February 2009, Houston experienced a 24% decline in year-to-date sales over 2008.  Every month following February, sales declines began to decline and the year ended with 7% fewer home sales than 2008. 

 

  1. First Quarter 2010 sales are equal to those found in First Quarter 2009 however,
  2. Dollar volume sales are up by 13% for a total of $2,183,412,127. 
  3. The average sales price is up 13% at $204,191 and the median sales price is up 8% at $149,900. 
  4. The average price per square foot is up 10% and now stands at $87. 
  5. Homes on the market are up by 3% with 28,793 listings, certainly not a supply that would impact home values.  The best news of all is that
  6. Days-on-Market, the average number of days it takes to sell a Houston home is down by 16%. Days-on-Market are 81.

Previously, we mentioned the rise in upscale homes as a rationale for a rise in average and median price in the overall Houston market during the First Quarter.  These were attributable to only 23% of all sales in Houston.

What home price classes were the hottest selling in Houston through First Quarter?  

The following table indicates by price class the hottest selling price ranges in Houston in 2010:

Top Ten Selling Price Classes

Houston Single-Family Real Estate

First Quarter 2010

Price Class

Sales Year to Date

Active Listings

Months of Inventory

1. $200,000-$249,999

1,028

3,078

6.5

2  $250,000-$299,999

750

2,495

7.6

3. $300,000-$399,999

722

2,759

8.2

4. $120,000-$129,999

591

1,575

6.1

5. $130,000-$139,999

575

1,502

5.8

6. $110,000-$119,999

573

1,448

6.2

7. $90,000-$99,999

509

1,251

6.1

8. $150,000-$159,999

500

1,391

6.3

9. $140,000-$149,999

486

1,454

6.6

10$80,000-$89,999

476

984

5.4

 As you can see from the Top Ten Selling Price Classes in Houston for 2010, hot selling prices ranged from $80,000-$399,000. These price classes are expected to be hot in Houston at least through June 30th because of the time-contingent 2010 IRS Home Buyer Tax Credit.  Setting aside this temporary demand incentive, these price classes are also more aligned with historical price class demand in Houston.

These attributes will spark demand through June, but what about the rest of the year?  While no one has an accurate crystal ball, Dr. Barton Smith of the UH Center for Public Policy remarked,” A year ago, I thought we’d be dragging behind the parade but we’re just not doing that.”