Note: Due to the large volume of homes sold, I usually need two months to compile data. So in December, I'll be using October data, obtained from the Houston Association of Realtors.
Note: Hurricane Ike hit Houston in mid September, damaging property and resulting in lost power to most homes for up to three weeks. Also, the homes under contract before the hurricane had to be reappraised before banks would process loans, causing delays in closings. As I write this in early October, my guess is that the hurricane will impact sales for future months also, due to both personal and business interruptions as well as property damage.
Although the whole nation has been affected by the economy and bad debt,the problems have affected Houston housing much less than most other areas of the country. The year 2007 was the second best year in Houston on record based on the HAR stats. Total property sales were lower in 2007 than in 2006, but total dollar volume was a record high. So in a nutshell, less homes were sold, but for more money.
This trend continued in 2008, until October, when both total sales and average prices declined. This was probably a result of both the troubled economy and Hurrican Ike. In October 2008 total single family home sales declined 20.1 % from October 2007. The October 2008 average sales price declined from last year by 1.6% to $194,607, but it was the second highest price ever for October. The median price which is a price where half the homes sold for more and half sold for less was $142,000,a 2.7% decrease from October 2007.
Townhomes and condo sales were down in total sold from last year, but the average price reached a record high for the month of October. In October 2008, the average sale price was $161,428, a 0.7% increase from last year.
In closing, the Houston housing market is still stronger in pricing than other areas of the country, although the foreclosures, more stringent lending requirements and poor economy have affected us. Our employment numbers and cost of living are considered some of the best in the country. Houston's favorable job and housing market have been mentioned in recent issues of BusinessWeek, Financial Times, Newsweek, Chicago Tribune, Washington Post, and Kiplinger's Personal Finance. In Houston, in recent years, you have been able to purchase a home for less than in many other cities and the value has increased. According to the National Association of Realtors, Houston's current median sales price for a single family home is $142,000 compared to the national average of $190,600. Month's inventory in Houston is about half the national average. We had the second best year on record in 2007. This indicates the great value of living in Houston. If your credit is good and you look on the bright side, interest rates have declined and the inventory is up, making this a good time to buy.
Location Characteristics: Known as both the Bayou City and Space City, Houston was founded in 1836 and named after General Sam Houston. With a population of close to 2 million, it's the 4th largest city in the United States. The city has been a dynamic center of business since the early 1900s and is also the leader in space technology, being home to NASA and the Johnson Space Center. The port area is thriving and connected to the city by the Houston Ship Channel. Other well known areas are Interstate 10's Energy Corridor, the Galleria, and the world class Texas Medical Center. Houston's feel is diverse, with both a high rise skyline and waterways like the Buffalo Bayou, which winds through the city.
Recently, downtown Houston has been transferred into a dynamic area of the city for both entertainment and residential living. Many new lofts and townhomes have been built in and near downtown and other buildings have been converted from commercial to residential use.
Houston has major league football, baseball, basketball ( men's and women's), and soccer teams, as well as AHL hockey. It also has separate horse and greyhound racing tracks.
For the theatre lovers, Houston is one of the few cities that has permanent ballet, orchestra, opera, and theatre companies.
Houston offers most everything you could possibly desire in real estate.
