As the Houston real estate market statistics for August year-to-date 2008 rolled off the press, so too did the announcement from the U.S. Treasury Secretary Henry Paulson of government seizure of Fannie Mae and Freddie Mac. Rumblings of such an occurrence had been in the news for days so it was not surprising. The conservatorship appears to be viewed by world financial markets as positive. Trading rose the following Monday. This step should help restore confidence in the secondary mortgage market and mark the beginning of a calmer mortgage market. It should also make mortgages more widely available and it is certainly our hope at Prudential Gary Greene, Realtors that the taxpayer impact will be minimal. The degree of impact on the American taxpayer is contingent upon home prices stabilizing and the economy seeing some resurgence. The good news is that commodity and oil prices have gone down somewhat and these factors, if continued will help fuel a lagging economy.

Houston has been a bright spot on the national scene in real estate this year, and in the last 3 months, has ranked in national publication rankings for Best US City to Earn a Living, Best City to Buy a Home, #1 Place to Live and Best City for a Job.  Click here for more details - Houston Rankings in National Publications. Despite a robust economy blessed with energy, oil, world-class medical centers and a nationally strategic port, Houston has been impacted by the national credit crunch that has caused tightening credit scenarios.  Credit tightening has restricted lending growth everywhere. As mentioned earlier, there are positive economic signals that indicate a better future for financial markets that directly effect real estate. 

The overall Houston residential real estate market for single-family homes, contrary to the national real estate market, has experienced a 3% higher average sales price than found last year and currently stands at $213,324. Of the 49 major submarkets that comprise Houston market data, which include surrounding counties, August saw 65% of the Houston submarkets experience higher average sales prices than the year before. For complete details, go to Houston August YTD 2008 Submarket Area Report 

Houston is growing at twice the national pace. It has one of the lowest costs of living, an educated workforce and is home to 88 consulates, which is a testament to its international influence. For a concise picture of the Houston economy, go to the Greater Houston Partnership web site.. All of the key drivers of a positive real estate market are present in Houston, and one of the reasons that despite a national credit crunch, Houston still boasts a positive median and average sales price. Future growth predictions also indicate that today is the best time to invest in real estate in Houston.

Houston Single-Family Real Estate Market	Aug. YTD 2008	%Yr. Ago07
# Sales YTD August	42,827	-13%
Dollar Volume Sales	$9,136B	-11%
Avg. Sales Price	$213,324	3%
Median Price	$154,900	1%
Avg. Days on Market	84	11%
Pending contracts	30,831	-13%
# of Listings	35,622	2%

August YTD 2008 in Comparison to August YTD 2007

As the above table depicts, the Houston single-family home sales are down by 13% in sold units in comparison to August YTD 2007 sales and has experienced 42,827 MLS recorded sold units.

Dollar volume sold in MLS through August YTD 2008 is $9,136,008,410, representing an 11% decline. With fewer home sales, it is logical that dollar volume sales would follow the same trend. It is interesting to note that while sales are down by 13% from last year, the dollar volume closed is only down by 11% from last year.

Active listings are up by 2% with 35,622 single-family properties currently available. Last month, the increase was 3%, so it appears that supply is slowly moving in a more positive direction.

Average sales price YTD is $213,324 or 3% 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. For example, the average sales price in 2005 was $186,416. Houstons current average sales price is 14.4% higher than the average sales price in 2005. 

The median price is $154,900 and that represents a 1% increase from last year. In 2005, the median sales price was $140,300 and so in 3 years, the median sales price has risen 10.4%.  

Contracts written, which represent August YTD buyer demand in Houston are down by 13% over last year with 30,831 homes reported as pending year to date.

Average sales price per square foot is $90, which represents the same value as last year.

Days on the Market have gone up by 11% since last year and the average time to sell a home in Houston is 84 days.

The Houston job market, favorable interest rates and favorable home prices drive real estate, so we have an economy poised to move beyond the current credit-induced stagnation and set new records. 

Stay tuned for next months report on Houston.