Houston Single-Family Home Sales Improve 81% Since June

The 2009-2010 IRS Tax Credit for home buyers was extended and expanded in November.  The new expiration date is April 30, 2010 and the tax credit now includes current homeowners, not just First-Time Homebuyers and income limits were expanded to $225,000. For detailed information on this home buyer advantage, please click here.

 With new incentives in hand, every month that passes in 2009, shows great improvement in comparison to the previous months’. The table below shows the difference between the market experienced in February, June and October YTD 2009.   As you can see, as 2009 progresses, the single-family housing market is slowly marching toward a healthier market.

  A summary of October YTD market statistics compared to last year:

• Sales are down from October YTD 2008 by 11% with 45,391 single-family homes.
• Dollar volume sold is down from October YTD 2008 by 14% with $9,202,482,156.
• Average sales price is currently $202,738, down by 4%.
• Median sales price is $153,000, down by 1% [half of the homes sold above and half below this midpoint range.
• # of contracts written [pending] are 31,101 and that represents 14% fewer than found last year.
• Active listings, a metric that is good if on a decline, are currently 27,758 or 21% less than last year. This is also a metric that in Houston is the exact opposite heard frequently in the national news.

 The newly extended Homebuyer IRS Tax Credit should stimulate sales, particularly in the Spring of 2010 and it will be interesting to see if inventory continues to decline as it has in recent months. The IRS Tax Credit should boost Houston back to normal market conditions sooner than it would have on its own.  Another added benefit to increasing home sales is that economists believe that for every home that is sold, regardless of the price, a $66,000 economic multiplier effect positively impacts the local market in which the home resides.  The IRS Tax Credit is truly an economic stimulus that sparks the local economy.

 What home price classes are the hottest selling in Houston right now? The following table indicates by price class the hottest selling price ranges in Houston in 2009:

As you can see, the top 10 selling price classes in Houston range from a low of $90,000 to a high of $399,000, and therein lies the largest demand for single-family homes in the Houston Multiple Listing Service. 

Prudential Gary Greene, Realtors® feels certain that fourth quarter 2009 sales will exceed fourth quarter 2008, which was interrupted by a devastating hurricane, economic uncertainty and a barrage of bad news. The Houston market has experienced a loss of confidence and uncertainty of the future, especially during the months following Hurricane Ike. The market improvement comparison table above indicates that our market is on the road to recovery. This market also spells opportunity, particularly with the IRS Tax Credit, to purchase a home before Houston experiences an upswing in the market, which inevitably will happen. The best time to capitalize on a “bounce-back” is before it bounces back.

Data derived from the Houston Association of Realtors® Real Estate Information Services and compiled by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®.  Market statistics occurring outside the HAR MLS are not reflected in this report.

New Home Sales Up 8 Percent In Cinco Ranch

October 28th, 2009  |  by InstantNewsKaty Staff | Published in News | Email This Post

New home sales Cinco Ranch are up eight percent for the first nine months of 2009 compared to the same period in last year, according to information released Newland Communities, developer of the master planned community.
 
A total of 697 new homes were sold in Cinco Ranch during the first three quarters of the year. That compares to 643 new homes sold during the same time last year.

HOME SALES STRONG – Despite a weak economy, new home sales were up 8 percent in Cinco Ranch for the first nine months of 2009.

  
Relocation sales have also remained strong in Cinco Ranch, accounting for one in three new-home sales in the community so far this year, according to Heather Gould, marketing director for Newland.
 
“Now in its 19th year of development, Cinco Ranch has built up strong brand equity and awareness among home buyers and Realtors, which has fueled both relocation sales and local move-up sales,” Gould said.  “In the present economy, home buyers also seem to be finding a greater level of comfort in investing in a large-scale master-planned community like Cinco Ranch.”
 
Gould also said Cinco Ranch has benefited as the largest and most established new-home community near the Energy Corridor, where employment has continued to be relatively stable. Cinco Ranch was also buoyed this summer when the Texas Education Agency gave its top accreditation rating – exemplary – to 12 of the 13 Katy ISD campuses serving the community.
 
Cinco Ranch has also expanded its new-home product offerings in 2009.

 

In late 2008, a model home park opened to showcase the community’s most affordable new homes, priced from the $160,000s. This fall, Cinco Ranch opened Park Place, a neo-traditional neighborhood with nostalgic architecture, prices from the $280,000s and new builders including J. Kyle Homes.

 

The community also benefited from a custom home showcase that attracted thousands of visitors this spring.
 
“Offering a variety of new-home styles and price ranges, along with an expanding array of recreational amenities, has also been key to the success of Cinco Ranch,” Gould said.
 
New home sales also increased 12 percent in Telfair, a 2,018-acre Newland Communities development in Sugar Land.  A total of 347 new homes were sold in Telfair in the first three quarters of 2009, compared to 313 new homes sold during the first nine months of 2008.