Texas home sales fall in October

Statewide home sales struggled during the month of October, according to the Texas A&M Real Estate Center, falling well below levels from last year.

According to a recent report, data from Texas Multiple Listing Services shows that 14,400 existing homes were sold during the month - a 26 percent drop from October of last year and 14 percent below sales from October 2008. Much of the decrease, as expected, was due to the now-expired homebuyer tax credit.

"Last October and November sales exploded because of the first-time buyer's tax credit," said Real Estate Center research economist Dr Jim Gaines, adding that upcoming sales numbers this spring will also likely trail their year-ago figures, but the drop-offs may not be quite as severe.

Looking specifically at Houston listings, there were just over 4,000 sales during the month, a 25 percent drop compared with October 2009, creating a 7.9-month inventory of available homes - slightly above the six-month standard for a balanced market.

However, the number of available Houston properties still compares favorably to national levels. According to the National Association of Realtors, the country has a 10.5-month supply of homes at current sales rates.