Houston is a dominant presence in the state of Texas – and worldwide, for that matter – so it only makes sense that many industry analysts have kept their eye on the Houston real estate market. Given the fact that Houston boasts a huge cultural and economic presence, the success or decline of the region can then start a wave to other cities in Texas, as well as in the United States.
This is why the latest figures on the Houston real estate front are so important to many people. The latest numbers, released on August 18, showed that home sales in the Houston area fell again in July. However, the good news is that the decline was the smallest since the beginning of the end, so to speak, in 2007.
Realtors sold 5,788 single-family homes in July, which was a 4.4 percent decline from the same time a year prior.
Some of the reasons why the decline in home sales has begun to level off include the slowdown of foreclosures and more competitive pricing. Foreclosure sales have slowly seen a decline. In fact, 34 percent of the homes on the market in January were foreclosures, while just 16 percent of the homes were foreclosures on the market in July.
Even more positive news on the Houston front included that sales of homes priced between $150,000 and $250,000 rose a modest 1.2 percent in July. This figure is incredibly important to Houston, as this price range has proven to be the most active in Houston.
A Restored Confidence
Perhaps what makes most realtors and industry experts happy about the possible market turnaround in Houston is that it shows the buyers and sellers have a restored confidence in the local real estate market, which is, by far, one of the most important signs to look for in a time when fear and uncertainty seems to reign.
Houston homeowners are no doubt relieved to see the decline in foreclosures sales as well, as it has allowed the median home price to gradually rise throughout the region. Home prices rose for the third straight row in July to a median price of $163,000, which is 1.5 percent higher than a year earlier.
Other Sectors Continue to Struggle
• Sales of commercial properties were 83 percent lower ending June 30, 2009 than they were a year earlier at the same time.
• Downtown commercial real estate saw a rise in the price per square foot to $266, up from $177 the previous year.
• The multifamily sector saw sales of $760 million ending June 30, 2009, compared to $3.2 billion the previous year.
• Retail properties in the Houston area posted $366 million in sales ending June 30, 2009, compared to $1.2 billion the previous year.
• Industrial real estate posted $193 worth of sales ending June 30, 2009, compared to $846 million the previous year. Price per square foot dropped to $45 during the same time, down from $60 per square foot a year earlier.
Whether you are a buyer or seller, stay ahead of the market trends by reading our informative analysis, which encompasses Houston condos and Houston real estate.
