MLS Press Release

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Public Relations Manager
3693 Southwest Freeway
Houston, TX. 77027
Phone: 713-629-1900 x258
E-mail: david.mendel@har.com
Chief Communications Officer
3693 Southwest Freeway
Houston, TX. 77027
Phone: 713-629-1900 x155
E-mail: matt@har.com
Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 36,000 REALTORS®
July 2006 Sales
Houston Real Estate Market On The Upswing As East and West Slow
July Marks Another Record Month For Houston Real Estate
 
HOUSTON — (August 18, 2006) — While the number of properties sold and the average sales price dropped modestly from last month’s blistering rates, the figures for July were still the best ever for the month. July real estate sales in the greater Houston region continued their streak of new monthly records.

Total property sales for the month totaled 7,975, which was a 3.3 percent increase over July 2005. Properties sold during the month reached a total of nearly $1.6 billion, a 10.3 percent increase compared to last year’s more than $1.4 billion in July sales. Additionally, the median home price for a single-family home reached a monthly record for July of $155,890 (after last month’s median sales price was revised slightly lower), and the average single-family home price topped the $200,000 mark for the third month in a row at $206,045, increases from last year of 7.5 and 7.0 percent, respectively.

“The greater Houston housing market has been tremendous this summer. Whether someone was in the market to buy a home or looking to sell, residents of the region have certainly been keeping Realtors busy,” said Lorraine Abercrombie, HAR Chair and Marketing Director for Greenwood King Properties. “We look for 2006 to be the best year ever for Houston real estate sales, which means we hope the rates of homeownership also rise as more people realize the American Dream.”

July Monthly Market Comparison

All listing categories combined, Houston’s overall housing market in July saw increases in most categories, including total property sales, average sales price, median sales price, and overall total dollar volume on a year-over-year basis.

The number of available homes (active listings) at the end of July was 45,613 properties, which was an increase of 0.6 percent versus last July and the first month with a year-over-year increase, after 10 consecutive declines. The figure was an increase of 1,171 properties from last month though, which is an increase of more than 2,000 homes in the last two months and shows new listings may be outpacing sales activity.

Month-end pending sales – those listings expected to close within the next 30 days – reached 5,108, which was up 2.1 percent from last year, and signals a fairly strong August for sales. The months inventory of single-family homes for July came in at 5.6 months. This statistic signals more of a seller’s market and also shows that demand is more than keeping up with the available supply of homes, as displayed by July reporting the 21st consecutive decline in year-over-year months inventory figures.
All Categories July 2005 July 2006 Percent Change
Total property sales 7,719 7,975 +3.3%
Total dollar volume $1,417,865,846 $1,563,464,363 +10.3%
Average single-family sales price $192,604 $206,045 +7.0%
Median single-family sales price $145,000 $155,890 +7.5%
Active listings 45,361 45,613 +0.6%
Pending sales 5,005 5,108 +2.1%
Months inventory* 6.1 5.6 -9.0%
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.
 
Single-family Homes Update

The overall median price of single-family homes of $155,890 was an all-time record after last month’s initial median sales price was revised down, which was an increase of 7.5 percent compared to the prior year, and the average sales price for single-family homes was $206,045 during July, which was up 7.0 percent versus the same period last year. The median is a typical market price where half of the homes sold for more and half sold for less than that figure.

Houston’s current median price of $155,890, while an all-time record for the Houston market, is 32.7 percent less than the national median price, which reached $231,500 in June, according to statistics released by the National Association of REALTORS®. These data continue to show the tremendous value and lower cost of living afforded to Houstonians.

Additionally, total sales for single-family homes in Houston continued its streak of year-over-year increases, marking 30 consecutive months that sales have been higher than the same month of the previous year. For July 2006, single-family home sales increased by 3.7 percent to 6,717, up from last year’s 6,476.

HAR is now also reporting existing home statistics for the single-family home segment of the real estate market. For the month of July 2006, existing single-family home sales totaled 5,757, which was a 3.0 percent increase from July 2005. The median sales price for existing homes in the Houston area was $150,000, an increase of 7.9 percent compared to the same period last year. The average sales price for the month of $194,216 was an increase of 5.7 percent from last year’s level.

Townhouse/Condo Update

The overall median price in the townhouse/condo segment in Houston was up 1.3 percent for July, with the median sales price for the month being $120,000. The average sales price for which a townhouse or condo sold in the greater Houston area was $146,468 in July 2006, which was a 0.9 percent increase from the same month last year.

Additionally, the number of townhouses and condos that sold in July increased compared to last year’s sales, with 684 units being sold last month, versus 656 properties in July 2005, or a 4.3 percent increase in year-over-year sales.

Houston Real Estate Milestones in July
  • Reached the highest average sales price for single-family homes for July.
  • Marked the all-time highest median sales price for single-family homes.
  • Marked the highest dollar volume of sales for July.
  • Recorded the highest number of single-family homes ever sold in July.
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    The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 22,000 REALTORS throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for about 43,000 properties can be found on the Internet at http://www.har.com.

    The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.

    The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)

    Founded in 1918, the Houston Association of REALTORS® (HAR) is a 23,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual membership trade association in Houston, as well as the second largest local association/board of REALTORS® in the United States.