Houston Area Home Prices Soar In July As Property Sales Record Another Monthly Drop
The average price of a single-family home sees its biggest increase in more than two years; median single-family home pricing hits a record high
HOUSTON (Aug. 19, 2008) Declining property sales tempered by strong single-family home average and median pricing prevailed across the greater Houston area for the eleventh consecutive month in July, according to statistics released by the Houston Association of REALTORS® (HAR). Sales of single-family homes slid 12.0 percent on a year over year basis a smaller decline than the market has experienced in the past two months.
The average price of a single-family home rose by 8.0 percent in July to $226,072, second only to last months all-time record high of $227,274. The figure represents the biggest jump in average price since June 2006. The median price of a single-family home rose 3.4 percent last month to $161,370, surpassing its previous high of $160,000 in June 2007. Last month HAR reported a record median single-family home sale price of $162,000 for June 2008, however the revised figure for that month is $160,800. The median price is where half of the homes sold for more and half sold for less.
Sales of all property types for July 2008 totaled 7,052, reflecting a 12.7 percent drop compared to July 2007. Total dollar volume for properties sold during the month was $1.5 billion versus $1.6 billion one year earlier, a 6.7 percent decline.
As we approach the one-year mark from when property sales began to slow, we continue to note positive signs in the form of strong pricing and stabilizing inventory, said Michael Levitin, HAR chairman and principal of HTownRealty.com. Consumers from across the country and around the world are setting their sights on Houston, Texas as an extremely desirable place to buy a home during these challenging economic times.
July Monthly Market Comparison
All listing categories combined, the month of July brought Houstons overall housing market a continuation of mixed results. Both average and median single-family home sales price rose on a year-over-year basis, however total property sales and total dollar volume were down.
The number of available homes, or active listings, at the end of July was 53,779 properties, a 1.5 percent increase from July 2007. Thats 13 fewer active listings than June 2008.
Month-end pending sales those listings expected to close within the next 30 days totaled 4,758, which was 13.8 percent lower than last year and strongly suggests the likelihood of another sales decline next month. The months inventory of single-family homes for July came in at 6.7 months, unchanged from a month earlier. This compares to the July 2007 single-family homes inventory of 6.2 months.
Single-Family Homes Update
At $226,072, the average sales price for single-family homes reached the second highest level on record in July, increasing 8.0 percent from the same period last year when it was $209,264. Thats the biggest pricing increase since June 2006. The overall median price of single-family homes in July was $161,370 compared to the national single-family median price of $206,500 reported by the National Association of REALTORS?. These data continue to underscore the higher value and lower cost of living that prevail in the Houston market.
Additionally, total July sales of single-family homes in Houston came in at 6,008, which was 12.0 percent lower than July 2007. Positive year-over-year sales activity continued in Houstons low-end single-family home market, with a 5.6 percent increase among homes priced below $80,000. Sales of homes priced above $500,000 rose by 9.4 percent on a year-over-year basis.
HAR also reports existing home statistics for the single-family home segment of the real estate market. In July 2008, existing single-family home sales totaled 5,135, which was a 10.8 percent decrease from July 2007. At $209,413, the average sales price for existing homes in the Houston area rose 6.2 percent compared to the same period last year. The median sales price of $150,000 for the month was unchanged from one year earlier.
The Days on Market (DOM) statistic for July increased to 83 from the 72 days registered in July 2007.
The average price of a townhouse/condominium in the greater Houston area increased to $166,547, up 4.7 percent from one year earlier and the highest figure for the month of July. The median price rose 11.0 percent to $135,000 from July 2007 to 2008. That figure is also a high for the month of July.
The number of townhouses and condominiums sold in July was down from one year earlier. In the greater Houston area, 595 units were sold last month versus 658 properties in July 2007, translating to a 9.6 percent decrease in year-over-year sales.
Houston Real Estate Milestones in July
Second highest average single-family home sales price ever ($226,072);
Highest ever median single-family home sales price ($161,370);
Highest average sales price for townhouses/condominiums for the month of July ($166,547);
Highest median sales price for townhouses/condominiums for the month of July ($135,000);
Sales of single-family homes priced below $80,000 increased by 5.6 percent;
Sales of single-family homes priced above $500,000 increased by 9.4 percent