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. 

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 makes best-performing city list

Houston Business Journal

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 Business Journal

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."

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.

The Sugar Land branch of the Houston Museum of Natural Science is slated to open October 3^rd and will host The Chronicles of Narnia, a 10,000 sq.ft. traveling exhibit which will cover the entire 2^nd floor.   Permanent areas of interest will include a Hall of Minerals, a Hall of Life Sciences, a planetarium and a frog exhibit.  There will also be an interactive Dig Pit, where children can unearth fossils; and Discover Works, where they can participate in hands-on activities.  The branch is located at 13016 University Blvd. in the Telfair community.            

For soccer fans you will be happy to know that Houston is still in the 2018 or

2022 Federation International de Football Association (FIFA) World Cup soccer tournament bid.  Reliant is on a list of 32 stadiums under consideration.  Houston was already selected as host city for the 2010 Major League Soccer all-star game which pits a group of MLS stars against an international soccer club.  It will be played at either Robertson Stadium or Reliant Stadium.  It takes place following the 2010 FIFA World Cup. 

The Greater Houston Convention Visitors Bureau noted other accomplishments for Houston such as hosting the AAU Junior Olympics in 2012, the National Rifle Association’s annual meeting in 2013 and the NCAA Final Four in 2016.  As

Houston continues to expand its host role, we see an expansion in hotels & airline accessibility.  Continental announced nonstop service from Houston to both

Washington Dulles and Edmonton, Alberta.  In the Katy area future hotels include a Hilton Garden Inn (opening early 2010 with 101 rooms); a Marriott Residence Inn (opening early 2010 with 126-suites); and a Comfort Inn & Suites (still in the planning stages).  The Merrill Center and PetroSkills Conference Center should help draw visitors into the area. 

Men’s Wearhouse is launching its second “suit drive” from September 1 – 30.  They will accept donations of gently used office attire at any of its store locations.  The donations will be provided to nonprofit organizations for distribution to job seekers to help them “sell themselves” during job interviews.  Frito-Lay and Kroger are teaming up to build a new park on Galveston’s Seawall Boulevard.  Between Aug. 23 – Sept. 19 they donate $1 every time a consumer purchases two bags of SunChips.  As our oldest daughter worked on the SunChip project at Frito-Lay, I am a bit biased on this project. 

Houston Single-Family Market Improvement Comparison 2009
Market Indicator	February ‘09	June ‘09	July ‘09	% Change from 02/09 to 07/09
# of units sold	-24%	-20%	-17%	+7%
Dollar Volume Sold	-33%	-24%	-21%	+13%
Avg. Sales Price	-12%	-6%	-5%	+7%
Median Sales Price	-8%	-2%	-1	+7%
# of Pending Sales	-23%	-21%	-20%	+3%
Active Listings	-20%	-22%	-22%	-2%
July 2009 Report from Real Estate Center at Texas A & M and Houston Association of Realtors

The table above displays how the Houston area market appeared to reach bottom in February with almost one fourth of the number of units and one third of the dollar volume dissolving from the previous year-to-date.  However, as time marches through 2009, those declines have declined.  See the column above “% Change from 02/09 to 07/09” to see the market improvement.  The only market indicator that is not in a positive position is the number of active listings, which  are down by 22% over this time last year and down 2% from February 2009.  Reduced inventory is a positive indicator and prevents real estate values from declining.

Here is a summary of Houston Single-Family Real Estate Market statistics for July 2009 year over year comparison:

• Sales reached 30,790 units sold, a 17% decline over July YTD 2008.
• Dollar volume sales reached $6,212,573,724, a 21% decline during the same time frame.
• Average sales price is $201,772, a 5% decline over July YTD 2008.
• Median sales price [half of the homes sold above the median and half below, and not subject to extreme fluctuations like average sales price] is $152,000 and that figure is down by only 1% from this time last year.
• # of pending sales or homes that have gone under contract year-to-date are 21,701 or a 20% decline over July YTD 2008.
• Active listings are 27,898 or 22% below those found in July YTD 2008.

The Brookings Institute ranked Houston the #1 housing market in the nation; see July 10, 2009 blog for details.  Houstonians are fortunate to have weathered this economic downturn better than any in the nation.

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

 As you can see, the top selling homes by price class in Houston year-to-date range from a low of $90,000 to a high of $399,999, and these price classes represent the highest buyer demand for single-family homes.

First-time home buyers are encouraged to capitalize on the 2009 First-Time Homebuyers IRS Tax Credit as it stands a good possibility of expiring on December 1.  See if you qualify by taking the quiz located on the lower left hand corner of http://media.garygreene.com/.  For more information on the First-Time Homebuyers Tax Credit, please be sure to visit: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit_how_to

Houston was recently listed as one of America's 10 Best Under-valued cities to live in.  Please see the excerts below concerning our great city! 

The real estate bust has created some attractive bargain opportunities in certain housing markets

Cinco Ranch posts sales gain for first six months of 2009

The Cinco Ranch team is pleased to report that new-home sales increased during the first six months of 2009 over the previous year. Cinco Ranch had 467 new-home sales during this time, compared to 446 sales for the same period in 2008. The 21-unit increase represents a 4.7% increase for the first six months of 2009 over the previous year. 

“While the increase might appear modest, it takes on significance when contrasted with the overall Houston market, where new-home sales are generally down by double digits in 2009,” said Jennifer Taylor.

Strong relocation sales to out-of-town buyers have helped Cinco Ranch improve upon the sales momentum it achieved in 2008, when it was ranked as the number one community for new-home sales in Texas (and number two in the nation) by RCLCO, a national real estate advisory company.

“Out-of-town buyers accounted for fully one-third of new-home sales at Cinco Ranch for the first half of 2009, a good indicator that Houston is still adding jobs, especially in the Energy Corridor which is near the community,” Jennifer said. 

Nearly half of Cinco Ranch sales for the first six months of 2009 have been “spec” homes (homes that were started by builders in anticipation of buyers). “The high percentage of spec sales at Cinco Ranch so far this year offers further evidence of strong relocation demand, since relo buyers typically want homes available for quick occupancy,” she added.

13 Most Creative Cities in the World

Another milestone for Houston in the real estate arena came from the Texas A & M Real Estate Center quoting Mike Inselmann, President of MetroStudy about new home sales in Houston: ”

“Despite sharp cuts in new home production, Houston still ranks as the nation’s top home-building market from March 2008 to March 2009, when builders started 22,502 homes and closed 28,326.”

Houstonians are fortunate to be living in a city where the number of  single-family homes on the market [inventory] has declined more than the number of home sales or for that matter, the amount of buyer-demand.

In a nutshell, May YTD single family home sales in Houston according to the Houston Multiple Listing Service:

1. Sales have reached 19,597 through May 2009, a 21% decline over year-to-date 2008.
2. Dollar volume sold YTD as recorded in Houston Real Estate Informaton Services is $3,754,771,410, a 26% drop in volume found year-to-date in 2008.
3. The average sales price of Houston single-family homes is $191,599 or 7% less than last year.
4. The median price is $145,000 and that is only 3% less than last year.  Median is the mid-point price where half the homes sold above and half sold below.
5. Pending sales recorded year-to-date are 15,072 or down by 22%.
6. The most positive note in the market is that new listings are down by 24%, a decline greater than sales and also key to retaining home value.  Active listings reached 27,769 and that figure is down by 22% from this time last year.

All real estate is local and with the land mass of Houston, one of the nation’s largest cities geographically and in population, the overall market appears much different than subsets of the whole.  Some areas of Houston are in an appreciating mode, while others are not as favorable.

The top 5 residential areas ranked by hotness for May 2009 are:

1. Katy - the south area with a hotness ratio of 22.5%, meaning 22.5% of all listings in the area received a contract in the month of May.
2. Pasadena area - hotness ratio of 17.9%
3. Fort Bend West - hotness ratio of 17.3%
4. Near North - hotness ratio of 16.5%
5. Southeast - hotness ratio of 16.3%

As you can see, these areas as well as others in Houston are experiencing the highest buyer demand in the city and differ quite substantially from the overall market expressed above. 

While the national news paints a bleak economic outlook, news about Houston’s economic future continues to look positive.  Most recently, the 2014 completion of the Panama Canal is predicted to triple freight tonnage at the Port of Houston, according to Moody’s Economy.com. In addition, the Canal’s expansion will make way for larger vessels that will increase not only cargo traffic along the Houston Ship Channel, but also the need for improved logistics and rail. 

When it comes to housing, according to Mike Inselmann, President of MetroStudy, “Houston still ranks as the nation’s top home building market, from March 2008 to March 2009, when builders started 25,502 homes and closed 28,326.”

Good news in hand, with every month that passes in 2009, the market indicators improve in comparison to the previous months’.  The table below shows the difference between the market experienced in February YTD 2009 and June.  

YTD 2009 and all of the metrics have improved this year.  The only metric that has continued to decline is active listings. A decline in active listings is very good news for market stability, especially during the high demand summer months. 

The current market indicators for Houston overall are as follows:

• Sales are down from June YTD 2008 by 20% with 24,994 single-family homes.
• Dollar volume sold is down from June YTD 2008 by 24% with $4,946,350,671.
• Average sales price is currently $197,902, down by 6%
• Median sales price is $149,500, down by 2% [ median is the mid-point where half of the homes sold above and half below.
• # of pending sales are 18,389 and that represents 21% fewer than found last year.
• Active listings, a metric that is good if on a decline, are currently 27,826 or 22% less than last year.  This is also a metric that is the exact opposite heard frequently in the national news.

While these are not upbeat statistics, they are very upbeat in comparison to California, Arizona, Nevada and Florida, where foreclosures and rising inventory have left little hope of a bounce back any time soon.  Houston homeowners are very fortunate to live in the best housing market in the nation.

Brookings Institute ranked the following Best U.S. Housing Markets as follows:

1. Houston

2. Buffalo

3. Dallas-Fort Worth

4. Wichita

5. Greenville, S.C.

Another milestone for Houston real estate came from the Texas A & M Real Estate Center quoting Mike Inselmann, President of MetroStudy about new home sales in Houston: “Despite sharp cuts in new home production, Houston still ranks as the nation’s top home-building market from March 2008 to March 2009, when builders started 22,502 homes and closed 28,326.”

Bottom line, Houston is the best place to have a housing investment or to acquire one.

May Brings Further Price Appreciation to Houston’s Housing Market

Single-family home sales reach the highest volume of 2009

HOUSTON — (June 16, 2009) — Sales of single-family homes for the greater Houston area achieved the highest volume of 2009 in May, and average and median home prices climbed to the highest levels since August 2008, showing signs of a real estate market that is benefiting from seasonal spring home buying. However, compared to one year earlier, overall May property sales were down 23.3 percent and sales of single-family homes dropped 21.2 percent, according to new monthly data compiled by the Houston Association of REALTORS® (HAR).

At $157,450, the May single-family home median price – the figure at which half of the homes sold for more and half sold for less – rose 1.6 percent versus one year earlier. The average price of a single-family home in Houston edged up 0.3 percent last month to $213,474 compared to May 2008.

Sales of foreclosure properties continued to shrink in May. Those properties, which typically sell below market prices, made up 19.9 percent of all single-family home sales in the Houston area. That compares to 34.0 percent in January, 28.0 percent in February, 24.5 percent in March and 23.6 percent in April. The median price of May foreclosure sales reported in the Multiple Listing Service (MLS) tumbled 5.3 percent from $89,900 to $85,108 on a year-over-year basis.

Sales of all property types in Houston for May totaled 5,539, off 23.3 percent compared to May 2008. Total dollar volume for properties sold during the month was $1.1 billion versus $1.5 billion one year earlier, a 23.8 percent decline.

Demand for rental properties eased slightly in May, with leases of single-family homes up 0.1 percent and leases of townhouses and condominiums up 6.2 percent on a year-over-year basis. This may be an indication that consumers are growing more inclined to purchase rather than lease homes, especially as interest rates—still at historically low levels—begin to rise.

“The more I speak with real estate associations around the country, the more I appreciate the strength with which the Houston market has weathered the economic downturn,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Our current housing climate has been performing at about 2004 levels while other regions of the U.S. are suffering what Houston endured back in the 1980s,” she added. “Many Houston Realtors are reporting increased activity this spring, and we hope that translates to measurable improvement in overall market performance.”

May Monthly Market Comparison
The month of May brought Houston’s overall housing market mixed results when all listing categories are compared to May of 2008. Total property sales and total dollar volume fell on a year-over-year basis while average and median single-family home sales prices rose.

The number of available properties, or active listings, at the end of May fell 15.1 percent from May 2008 to 45,282. That is just 13 more active listings than one month earlier, in April 2009, and continues to reflect balanced levels of housing inventory.

Month-end pending sales—those listings expected to close within the next 30 days—totaled 3,637, which was 24.7 percent lower than last year and suggests another decline in sales when the June numbers are tallied. The month’s inventory of single-family homes for May came in at 6.2 months, down 5.4 percent from one year earlier. The national month’s inventory of single-family homes rose slightly to 10.2 months, according to the National Association of REALTORS® (NAR).

Single-Family Homes Update

At $213,474, the average sales price for single-family homes rose 0.3 percent from May 2008, when it was $212,872. The figure is at its highest level since last August. The median price of single-family homes in April was $157,450, up 1.6 percent from one year earlier. The national single-family median price reported by NAR is $169,800, illustrating the continued higher value and lower cost of living that the Houston market offers consumers.

May sales of single-family homes in Houston totaled 4,797, down 21.2 percent from May 2008, and accounted for the 21st consecutive monthly drop. However, that volume is the highest so far for 2009. Year-over-year sales of single-family homes priced at $80,000 and below declined 12.3 percent in May, reflecting tapering foreclosure-related transactions.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In May 2009, existing single-family home sales totaled 4,019, a 21.4 percent decrease from May 2008. At $196,866, the average sales price for existing homes in the Houston area rose 0.5 percent compared to last year. The median sales price of $147,400 for the month was up 1.6 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in May fell compared to one year earlier. In the greater Houston area, 399 units were sold last month versus 618 properties in May 2008, translating to a 35.4 percent decrease in year-over-year sales. However, that still represents the highest sales volume for all of 2009.

The average price of a townhouse/condominium fell to $156,907, down 11.1 percent from one year earlier. The median price declined 18.7 percent to $125,950 from May 2008 to May 2009.

Lease Property Update

Demand for single-family rentals eased in May, and may suggest that conditions—particularly for first-time homebuyers—have improved to the point where consumers are ready to purchase. Single-family home rentals rose 0.1 percent last month compared to a year earlier. Year-over-year townhouse/condominium rentals rose 6.2 percent.

Houston Real Estate Milestones in May