Houston Real Estate Market & Lending Update
The credit for lending in Houston is freeing up, and Subprime loans are out the window. Last year local homes sales went up 29.1, boosting residential real estate lending for several local banks, not to mention mortgage refinance. Interest rates continue to be low, relatively steady home value appreciation. The healthy Job-creating economy, will continue to bring more demand.
Here is the problem for Houston Buyers, lowest inventory since year 2000. In December, single-family homes sales totaled 5,039, up 11.4 percent from December 2011. Sales of all property types totaled 6,055, up 12.5 percent from a year ago.
The average price and median price for single-family homes both reached their highest levels ever in Houston. The average price increased 11.3 percent over last year to 243,797, while the median priced was up 7.8 percent to 172,500.
The total dollar volume for all properties sold last month jumped 25.9 percent year over year to more than $1.43 billion, and HAR noted homes priced from $500,000 through the millions experienced the biggest increase in sales.
Additionally, the only price category to experience a decrease in sales was the portion of homes below, which decreased 17.7 percent from December 2011, and sales of foreclosed properties decreased 24 percent. Foreclosures made up 14.2 percent of reported sales, half the share they comprised at the beginning of last year.
Forward-looking indicators continued to improve, as well. Total pending sales at the end of December were up 6.2 percent year over year, and active listings were down 20.3 percent from December 2011. Meanwhile, the inventory of single-family homes dropped to a level not seen since the previous century. It reached 3.7 months, down 36.2 percent from the same time a year earlier and the lowest level since December 1999. Nationally, the single family home inventory is at 4.8 months.
The upper-end market is exceptionally hot. In January, the sales of houses priced above $500,000 and into the million-plus bracket were up 52 percent over January of 2012, the association reported .
The Market is not expected to cool down anything soon. The sales pending at the end of January were up 13 percent over January of last year, and spring selling season will be excellent. In short, Realtors are going to be running fast for a while.
Houston luxury real estate experts. Whether you are interested in buying or selling, or just simply browsing for your next dream home, you can find it for sale on our real estate website.