Houston most resilient market in nation

In an article in the Houston Chronicle, real estate columnist writes “Houston-area housing starts rose in the fourth quarter on a year-over-year basis, providing a glimmer of hope for the local home-building industry.”  According to David Jarvis from Metrostudy, “Houston's new-home market has been the most resilient market in the nation and appears to be bottoming in terms of the volume of new-home sales.”

Highlights from the article:

·         Builder’s home starts noted a 6% increase during past 3 months compared to previous year.

·         Builder’s home inventory decreased during last quarter and an estimated 6,323 closed in 2009.

·         One key indicator of a changing market is fewer concessions or incentives offered by builders which Jarvis found to be true in “some of the master-planned neighborhoods….buyers don't have the leverage they did 12 months ago,” Jarvis said.

·         Tom Wadley, division president at David Weekley Homes said “business is off about 65 percent from its high point. We haven't seen a real consistent four or five months with really tremendous sales, and that's what you wait for to say it's back. But we haven't seen that yet.”

·         The average months of inventory for Houston are 6.5 which demonstrates what is considered a balanced market for both buyers and sellers.

What seems to be driving this improvement?  Stabilizing economic trends, a growing population and new demand spurred by the extension of the homebuyer tax credit.  It’s certainly not time to get too excited but perhaps “cautious optimism” would best describe the temperature of Houston real estate.  

Source:  NANCY SARNOFF, Houston Chronicle, Feb. 3, 2010