Houston Real Estate Market May YTD 2008
>Anyone sitting on the real estate sidelines from a media-induced coma needs to wake up and smell the future in Houston, Texas. Yes, the Houston residential real estate market is experiencing a temporary lull from its "go-go" days of 2006 and 2007, but it is not from a lack of a robust job market and economy. I think it is the media. The city has even greater prospects for the future. But don't trust us, look at national publications such as Kiplingers.com, who recently named Houston as the Number 1 City for 2008 and called it the "Comeback Kid". http://www.kiplinger.com/features/archives/2008/05/2008-best-city-houston.html
>When it comes to the economy, the media has tried to make us feel bad about everything but has focused relentlessly on real estate and over-exaggerated the circumstances. But hark, there are signs that the American public just isn't buying the national media hype of "doom and gloom" and over-exaggerated tales about America's economic decline. This won't hit major headlines, http://online.wsj.com/article/SB121327375087967705.html?mod=djemalertNEWS
Consumer spending increased in May by 1%, and the two previous months of consumer spending [before economic stimulus checks were disbursed] were revised because actual spending was twice as much as projected. Even the government gets depressed by the media and then dumbs down from reality to media perception.
| Real Estate Reality | 2008 | %Yr. Ago07 | 2005 | % Yr. Ago04 | 2008 vs. 2005 |
| # Sales | 24,696 | -13% | 24,463 | 8% | +.09% |
| Dollar Volume Sales | $5.073B | -11% | $4.462B | 13% | +13.7% |
| Avg. Sales Price | $205,410 | 2% | $182,395 | 5% | +12.6% |
| Median Price | $150,000 | 0% | $138,000 | 4% | +.8% |
| Avg. Days on Market | 86 | 11% | 86 | 0% | 0% |
| Pending contracts | 19,380 | -11% | 18,512 | 12% | +4.68% |
| # of Listings | 35,472 | 6% | 30,144 | 7% | +17.6% |
>Houston's unemployment rate is 3.8% and nationally 5% unemployment is most often the best it gets. Jobs, interest rates and favorable home prices drive real estate, so we have an economy poised to not only absorb the additional inventory, but to move beyond previous growth cycles and set new records. I see this as an opportune time to buy real estate and stocks because in the future, I won't be able to afford them.
>The Houston real estate market of single-family home sales are down by 13% in sold units in comparison to May YTD 2007 sales and has experienced 24,696 MLS recorded sold units.
>Dollar volume sold in MLS through May YTD 2008 is $5,072,816,088, representing an 11% decline. With fewer home sales, it is logical that dollar volume sales would follow the same trend.
>Active listings are up by 6% with 35,472 single-family properties currently available. Last month, the increase was 8%, so it appears that supply is slowly moving in a more positive direction.
>Average sales price YTD is $205,410 or 2% greater than last year. While this is a small increase, it substantiates the opposite experience heard frequently in the national news. Houston is not a market where average sales prices are falling. In contrast, they are rising as they have historically, at a slow and steady pace. The average sales price in 2005 was $182,395, or 13.7% less than current.
>The median price is $150,000 and that represents no change from last year.
>Contracts written, which represent May YTD buyer demand in Houston are down by 11% over last year with 19,380 homes reported as pending year to date.
>Average sales price per square foot is $88, which represents a 1% decline from last year.
Watch for a more positive mid-year report next month.
