Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 47,000 REALTORS®
|June 2007 Sales|
|Greater Houston Housing Prices Continue Upward Trend|
|Records Set, While Market Shows Slowing Sales|
|HOUSTON — (July 18, 2007) – Houston continues to carve its own niche in real estate trends this month with single-family home sales in June declining compared to the same month last year, while prices continue rising. These are the first consecutive months with declining total sales in more than six years for the greater Houston real estate market but almost all of the decline is within the $80,000 to $140,000 price range and can be attributed to tighter restrictions in the sub-prime lending market. Home sales in price ranges lower or higher than $80,000 to $140,000 continue at a steady pace, and prices in June continued to display steady growth, as both the median and average total sales price set new records.
Total property sales for the month registered 8,509, which was an 8.4 percent decrease versus June 2006. Properties sold during the month reached a total of more than $1.8 billion, a 3.6 percent decrease compared to last year’s nearly $1.9 billion in June sales. Additionally, the median home price for a single-family home reached $160,000 for June, and the average single-family home price came in at $220,217, increases from last year of 2.6 and 3.7 percent, respectively.
“We continue to create our own story in the Houston market. Fortunately, it has good and bad for everyone. While we are experiencing a gentle decline, we can still encourage those looking for a new home to buy because there is a wealth of inventory. And those wanting to sell a home will be satisfied with the listing prices in our market today,” said Rob Cook, HAR Chairman and broker/owner of Robert D. Cook Properties. “While we are seeing some continuing fallout from the subprime/foreclosure issues, the Houston market remains healthier than the majority of the country, which has seen a 10.8 percent decline in sales and decreases in pricing as well.”
June Monthly Market Comparison
All listing categories combined, Houston’s overall housing market in June saw mixed results, with increases in average sales prices, median sales price and months inventory on a year-over-year basis. Declines were seen in both total property sales and total dollar volume.
The number of available homes (active listings) at the end of June was 52,718 properties, which was an increase of 18.6 percent versus last June and the 12th month with a year-over-year increase, after 10 consecutive previous declines. The figure was an increase of more than 2,300 properties from last month, which is not entirely unusual for the spring/summer as more homes are listed for sale, but it was also an increase of more than 9,200 since the beginning of 2007. It is still a figure to watch to see if inventory of available homes rises faster than sales, which could eventually place downward pressure on prices as well.
Month-end pending sales – those listings expected to close within the next 30 days – reached 5,615, which was down 1.5 percent from last year and signals a possible extension of weakness going into July sales. The months inventory of single-family homes for June came in at 6.2 months, which is the fourth consecutive year-over-year increase and does signal that new listings are outpacing sales, but still remains more of a seller’s market.
|* 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.|
Single-family Homes Update
The overall median price of single-family homes of $160,000 was an all-time record and an increase of 2.6 percent compared to the prior year. The average sales price for single-family homes was $220,217 during June, which was up 3.7 percent versus the same period last year and was also a new all-time high for Houston. The median is a typical market price where half of the homes sold for more and half sold for less than that figure.
Houstons current median price of $160,000, while another record for the Houston market, is 28.3 percent less than the national median price, which reached $223,000 in May, according to statistics released by the National Association of REALTORS®. These data continue to show the tremendous value and lower cost of living afforded to Houstonians.
Additionally, total sales for single-family homes in Houston in June came in at 7,154, which was 6.9 percent lower than June 2006 and is the first time sales have had consecutive months with declining sales in more than six years. June 2007 sales are still 6.9 percent higher than June 2005 sales though. Year-to-date sales also went negative this month, down 0.8 percent versus the first six months of 2006. While still only half way through 2006 and too early to tell, but Houston has not experienced an overall yearly decline in more than a decade so this is something to watch as the year progresses.
The Days on Market statistic for June was 71 days, which is historically low and shows that the homes that are selling are selling more quickly.
The overall median price in the townhouse/condo segment in Houston was up 4.5 percent for June, with the median sales price for the month being $130,990. The average sales price for which a townhouse or condo sold in the greater Houston area was $161,726 in June 2007, which was a scant 0.2 percent increase from the same month last year.
Additionally, the number of townhouses and condos that sold in June followed single-family home sales and decreased compared to the previous year’s sales. In the greater Houston area, 707 units were sold last month, versus 868 properties in June 2006, or a rather large 18.5 percent decrease in year-over-year sales.
Houston Real Estate Milestones in June
The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed
by 25,000 REALTORS throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton
counties. Residential home sales statistics as well as listing information for more than 50,000 properties may be found on the Internet
The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.
The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)
Founded in 1918, the Houston Association of REALTORS® (HAR) is a 26,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual membership trade association in Houston, as well as the second largest local association/board of REALTORS® in the United States.