The Houston housing market held to positive territory as 2012 began, with January marking the eighth consecutive month of increased home sales. The year also opened with a continued decline in active property listings and growth in pending sales—a combination that signals a healthy market with a balanced supply of housing inventory, and that puts Houston on enviable footing compared to many other markets around the U.S. that are slowly recovering from the housing downturn.

January sales of single-family homes climbed 9.2 percent versus one year earlier, according to the latest monthly data prepared by the Houston Association of REALTORS® (HAR). All segments of the housing market grew except the luxury segment—those homes priced from $500,000 and above—whose decline flattened the overall average price.

“The January report shows continued strength in the Houston housing market that we began seeing in the latter part of 2011, and it gives us cause for optimism as we look ahead to the typically active spring and summer buying months,” said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. “We have also seen more jobs being filled locally and you generally don’t experience a strong real estate market without healthy employment.”

January’s single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 0.9 percent year-over-year to $139,900. The average price of $194,765 was statistically unchanged from January 2011.

Foreclosure property sales reported in the Multiple Listing Service (MLS) increased 22.0 percent year-over-year in January. Foreclosures comprised 27.8 percent of all property sales, which is higher than the 2011 average of 21.0 percent. The median price of foreclosures in January was flat at $82,550.

January sales of all property types in Houston totaled 3,632, up 4.8 percent compared to January 2011. Total dollar volume for properties sold during the month rose 5.9 percent to $683 million versus $645 million one year earlier.

Today, August 24, the National Association of Realtors issued the following  statement, “Existing home sales drop 27% in July; effects of expired homebuyer tax credit add turbulence to the market.”

Following the national trend, an anticipated property sales slowdown set into the Houston/Katy real estate market in July following the expiration of the federal homebuyer tax credit. The credit had propelled local home sales for four straight months beginning in March, however home sales suffered a double-digit decline in July. Despite the drop, the average price of a single-family home still managed to climb to a two-year high.

The southside of  I-10 had a 26% drop in sales for July compared to 2009 levels. The northside  of I-10 experienced a 42% drop in July closings.  As many first time homebuyers purchased on the northside, this is reflected in the slowing sales. Despite the downturn, average prices rose slightly on both sides of I-10.

According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), July sales of single-family homes throughout the Houston market fell 25.1 percent compared to July 2009. Sales volume faltered in all single-family home pricing segments except among properties under $80,000, which were flat. Sales of all property types combined slid 24.4 percent in July on a year-over-year basis.

The average price of a single-family home rose 2.7 percent from July 2009 to $224,764, the highest price since June 2008. The July single-family home median price—the figure at which half of the homes sold for more and half sold for less—dipped 0.7 percent from one year earlier to $160,880, but still recorded its highest level since July 2009.

Foreclosure property sales reported in the Multiple Listing Service (MLS) tumbled 13.5 percent in July compared to one year earlier. The median price of July foreclosure sales declined 6.1 percent to $84,000 on a year-over-year basis.

Sales of all property types in Houston for July totaled 5,056, down 24.4 percent compared to July 2009. Total dollar volume for properties sold during the month was $1.0 billion versus $1.4 billion one year earlier, representing a 23.9 percent drop.

“Homebuying came earlier and at a heftier pace than we would normally have seen in Houston during the spring and summer months because of the tax credit, but indicators showed that sales would decline once the credit expired, so this comes as no surprise,” said Margie Dorrance, HAR chair and principal at Keller Williams Realty Metropolitan. “It is encouraging that pricing has remained strong and that on a year-to-date basis home sales are actually slightly ahead of 2009 levels.”

Houston and surrounding areas month-end pending sales for July totaled 3,267, down 16.4 percent from last year, suggesting that sales will be down again in August. The months inventory of single-family homes for June extended to 7.7 months compared to 6.5 months one year earlier, but remains healthier than the national months inventory of single-family homes of 8.9 months, reported by the National Association of REALTORSâ (NAR).

77450 Days on Market June Market Report

However, Days on the Market is relevant if we keep in mind that the highest priced homes are fewer in number and usually slower to sell. Less  people can afford to purchase in the highest-end price range.

High-end home sellers find that competition is tough. This buyer has a real choice, due to other extremely prestigious areas of Houston such as the Memorial Villages. While Katy schools are the greatest motivator for home purchases in our area, those who can afford million-dollar-plus homes can also afford private schools. Many chose to live closer to downtown Houston.

Still, if marketed correctly, the highest end listings will sell. Statistics prove this and sales are consistent.

The above graph represents the last six month’s data for Days on the Market. While at first glance, it appears to represent a negative shift, if you look closely you will see that the time from listing-to-contract is stabilizing. The extreme upward spike has leveled out. The great influx of spring and summer homes contribute to a longer sales period.

As far as how long a house takes to sell, an extreme  contrast exists between houses that are priced aggressively and over-priced property. Houses priced at market value sell relatively quickly. At this time of year, many sellers try to-push-the-envelope with respect to pricing.

Another factor is how the home shows. A clean, neat and uncluttered home sells far more quickly. To accomplish this important edge in selling, professional staging has grown in importance. In almost all cases, it easily pays for itself.

Six months ago there was a glut of property on the market as represented by the above chart, Inventory for 77450. By mid-March, a significant number of houses were off the market.  Some sold and others were taken off.  Numbers rose again with the traditional influx of spring and summer houses.  Inventory has stabilized in the last 45 days. There are approximately 357 homes on the market.

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I offer financial incentives to my sellers/buyers. I have specialized in Katy real estate for over 20 years. Experience does count!

For more specific answers, let’s look at some detailed statistics prepared today with the very latest data. The black line represents zip code 77450 and the orange line represents 77494.

Median Price in 77450: This week, the median single-family home price in Katy 77450 is $226,500. This week prices in this zip code remained relatively flat. However, the recent trends have us pulling back from the market’s high points.

Keep an eye on the Market Action Index (see below)  for a leading indicator of the duration of this downward trend. The Market Action Index answers the question, “How is the market?” It measures the current rate of sales versus the amount of the inventory.

Median Price in 77494: This week, the median single-family home price in Katy 77494 is $300,247. This week prices in this zip continued to pull back from their recent highs. Keep an eye on the Market Action Index to look for signs of an extended downward trend.

Inventory in 77450 and 77494: Local conditions are currently quite strongly in the Buyer’s Market zone. With several months of inventory available at the current sales rate, buyers should find ample choice. Being Springtime, the annual increase in listings is a part of this data.

Average Days on the Market in 77450 and 77494: Days-on-the-Market are trending downward. Even as more properties become available, these are positive trends for the market. With inventory trending up but Days-on-the-Market trending down, conditions don’t seem to have strong up or down pull.

Median Market Action Index 77450

Median Market Action Index 77494

Market Action Index 77450 and 77494: On the Market Action Index a score below 30 equals a Buyers Market. The Market Action Index is 17 in Katy  zip code 77450 and 15 in Katy zip code 77494.

For more information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I have specialized in Katy real estate for over 20 years. Experience does count!

Watch for persistent downward shift in the Market Action Index, available on my weekly subscription service, see order form. The buyer’s zone is a leading indicator of the price strength sustaining.

Pertaining to supply and demand, local conditions are currently quite strongly in the Buyer’s Market. Again, see my highly detailed report available through a free subscription. The 90-day Market Action Index stands at 16. With several months of inventory available at the current sales rate, buyers should find ample choice.

Zip Code 77494: For highly detailed market reports, order my free Market Report newsletter; order form to the left.

The median single family home price in Katy 77494 this week is $299,900. Inventory has been tightening and days-on-market decreasing recently.

The Market Action Index has been basically flat, not providing strong indication for market conditions. We continue to see prices in this zip code hovering around their high point. Look for a persistent down-shift in the Market Action Index before we see prices deviate from these levels.

Local conditions are currently quite strongly in the Buyer’s Market zone. The 90-day Market Action Index stands at 15. Charts available in my free newsletter. With several months of inventory available at the current sales rate, buyers should find ample choice.

For more information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404. I offer financial incentives to my sellers/buyers. I have specialized in Katy real estate for over 19 years. Experience does count!

You will find this data on my new “live” page, How’s the Market?. For far more detailed data, you can subscribe to my free weekly market report. The subscription link is found on the How’s the Market page.

For information about Katy area homes, you can search the entire Houston MLS from this blog. For questions or to tour any area homes, contact me directly at 713-818-2404.I have specialized in Katy real estate for over 20 years. Experience does count!