Houston Area Home Prices Soar in July as Property Sales Record Another Monthly Drop

HOUSTON — (August 19, 2008) — Declining property sales tempered by strong single-family home average and median pricing prevailed across the greater Houston area for the 11th consecutive month in July, according to stats released by the Houston Association of Realtors® (HAR).  Sales of single-family homes fell 12% 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% last month in July to $226,072, second only to last month's 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% 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 sales price of $162,000 for June 2008, however the revised figure of that month is $160,800.

Sales of all property types for July 2008 totaled 7,052, reflecting a 12.7% 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% decline.

Quoting HAR Chairman, Michael Levitin, "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.  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, July brought Houston's 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 (active listings) at the end of July was 53,779 properties, a 1.5% increase from July 2007.  That's 13 fewer active listings than June 2008.

Month-end pending sales – those listings expected to close within the next 30 days – reached 4,758, which was 13.8% lower than last year.  This strongly suggests the likelihood of another sales decline next month.  The month's 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.

All Categories July 2007 July 2008 Percent Change
Total property sales 8,082 7,052 -12.7%
Total dollar volume $1,644,337,747 $1,533,859,760 -6.7%
Average single-family sales price $209,264 $226,072 +8.0%
Median single-family sales price* $156,000 $161,370 +3.4%
Total Active listings 52,976 53,779 +1.5%
Total Pending sales 5,520 4,758 -13.8%
Months inventory** 6.2 6.7 +8.3%

  * The median price is determined by half of the homes sold for more and half sold for less.

** Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

 

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