Houston real estate | what to expect from the houston market

Houston Real Estate | What to Expect from the Houston Market

Houston real estate has long been a barometer for the rest of Texas. But now, in the recession, the city is behaving out of character. One day things might look promising; the next, not so good. With the rest of the state looking for guidance, it is easy to see how many realtors are concerned. But the truth is the market is trying to work itself out. It is vulnerable to the economy. It is aggressive in its method. And it will not go away. Gently. So, the big question is when and how the market will recover, not if it will recover. Houston-area home sales fell for the 20th straight month in April as the local housing market continues to slog through the recession and financial crisis. Single-family home sales last month fell 22.5 percent compared to the previous April, according to data from the Houston Association of Realtors. Prices, though, were down less than 1 percent, a positive sign after six months of more significant drops. The median price for a single-family home was $149,050 in April, compared to $150,000 a year ago. The median is the point at which half the homes sold for more and half sold for less. ?€?The housing industry recovery will be a gradual process, but Houston continues to demonstrate the strength of its home values compared to other communities around the country, where pricing ballooned and then bottomed out,?€? Vicki Fullerton, the association?€™s chair and broker of record at RE/MAX of The Woodlands & Spring, said in a news release. Homes sold out of foreclosure made up nearly a quarter of all the single-family homes sold in April. But that figure has been tapering since January when foreclosures made up 34 percent of sales. With historically low interest rates and a federal $8,000 tax credit, real estate agents are reporting more activity among first-time home buyers. Realtors sold 4,200 single-family homes in April through the Multiple Listing Service. Most of the sales were of existing homes. Preliminary figures for May signal another decline, with a 25.3 percent drop in pending sales at the end of April. Those are listings expected to close within the next 30 days. The number of properties for sale also fell in April to 45,269. Rental demand picked up again last month with leases of single-family homes up 8 percent on a year-over-year basis. Townhouse and condominium leases were up 12.2 percent. So there you have it, Houston is a city on the brink. It could go either way. But for savvy investors, with the right capital, credit and security, plenty of lucrative investments are available.