October  YTD 2008 – Single-family home sales

 A Time for Thanksgiving.

This year, Houston has weathered the devastation and down-time of a major hurricane and as best as possible, absorbed the effects of a national downward-spiraling economy. Neither event makes a good recipe for real estate or a local economy. Despite it all, Houston has much to be thankful for, namely a lower unemployment rate than the state or nation. Unemployment through September 2008 was 4.5% in Houston, 4.6% in Texas and 5.5% in the nation. While these numbers are more likely to rise in the coming months, Houston’s unemployment will continue to remain lower than Texas and the nation due to the city’s strength in oil, energy, biotechnology, medical centers and port.    

The Background: Houston Real Estate Market through August 2008

Houston Real Estate Market through October 2008

Houston is down in number of sales from last year [the peak year in Houston residential history] by 15% with 50,650 single-family homes sold year-to-date. This is a testament to the strength of the Houston economy. What city has fared better in real estate under similar circumstances? Dollar volume sales have experienced a 13% decline, with $10,709,267,873, clearly a 2% lower decline than number of sales. 

The most surprising statistic that runs contrary to the nations’ declining home prices is our increase in average sales prices over last year of 3% or $211,437. Median price, which is the mid-point price, where half the homes sold above and half sold below, is the best barometer for home price appreciation and it is up through October 2008 by 1% or $154,000. Very few real estate markets across the nation can lay claim to any increase in median sales price. We are fortunate indeed and thankful for this type of sustenance in home price values after weathering one of the gloomiest years in history.

The final upside of the current real estate market is the decline in number of listings over this time last year by 1%, for a total of 34,992 single-family listings currently on the market.

At this writing, with the Presidential election behind us, a new administration entering the White House and Congress in the New Year, it is difficult to predict what the future holds. One thing for sure, Houston is poised, come what may, to weather the future better than the majority of cities in the nation. For Houston, it is a time for Thanksgiving.

For a concise picture of the Houston economy, go to www.houston.org . The home page is chocked full of national press release links to multiple sources that show the economic esteem Houston has on a national basis. All of the key drivers of a positive real estate market are present in Houston, and one of the reasons that despite a hurricane and a national credit crunch, Houston still boasts a positive median and average sales price. Future growth predictions and the current lull in the market indicate that today is probably the best time to invest in real estate in Houston.

 Stay tuned for next month’s report on Houston.