Houston real estate market turning the corner in May 2009

Posted by Erion Shehaj in Houston Real Estate, Market Reports on Thursday, June 18, 2009 | one response

On Tuesday, the Houston Association of Realtors released market statistics that amount to some of the best real estate news coming out of the Houston Area since Fall 2008. Here’s the short version:

  1. Both Average and Median Sales prices were up (0.3% and 1.6% respectively) compared to May 2008. This had not happened since the national economy entered the deepest end of the recession last fall – a strong indicator that the market may be turning the corner on the way to stabilizing sales and mild upswing. Remember, home prices were pretty flat in April which was an improvement from consecutive months of drops so this does not appear to be a one-off fluke.
  2. Number of Active Listings on the market and by proxy the Absoption rate were down significantly. Number of homes on the Houston market dropped by a solid 15% and absorption rate continues to be pretty close to half the national average. Market can’t stabilize if a glut of inventory dampens prices, so this is a very powerful positive indicator.
  3. To wrap up the positive news, the impact of foreclosures in the Houston Real Estate market continues to wane as foreclosures sales continue to account for less and less of the total sales with each passing month. We started January with foreclosures claiming close to 35% of total sales and now in May they account for just 19%. It’s no wonder that were seeing rising prices as the balance shifts to higher retail sales.
  4. To keep us from screaming sweet victory, total property sales continued their downward march that started in August 2007 with another 23.3% drop that is in the margins of what has become the norm now for almost 2 years.

may-08-09-comparison

median-sales-price-may-20091

may-total-sales

active-listings-may-2009

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One Response to “Houston real estate market turning the corner in May 2009”

  1. Three Marketing Principles that changed our business | Real Estate Opinion MAG - AgentGenius says:
    July 9, 2009 at 9:55 am

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