Texas housing market shows improvement

A report from the Federal Reserve Bank of Dallas says that the Texas real estate market showed notable improvements in January, as home sales increased.

The report says that statewide, existing-home sales rose for the second straight month in January, rising 3 percent compared to December.

Home construction numbers also showed positive movement. According to the report, housing permits jumped 4.3 percent from December to January - the fourth straight month in which permits have increased. Also, housing starts rebounded by jumping 7.7 percent during the month after a 7 percent drop-off in December.

At the same time, home prices, according to data from Federal Housing Finance Agency, fell to close out 2010, sliding 1.6 percent during the fourth quarter of 2010, creating more affordable conditions for those looking at Houston properties.

Prices for Houston homes, however, have moved in the opposite direction. According to the Houston Association of Realtors, the average home price in the local market gained 2.2 percent in January, reaching its highest level ever for that month.