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Will Houston Real Estate Follow National Trend?

Posted by 2M Realty on Friday, January 8th, 2010 at 4:27pm.

Pending home sales plummeted 16 percent in November, according to the National Association of Realtors. The first-time home buyer federal tax credit had generated increased sales over recent months, but November fell short of expectations.

The question remains: Will Houston real estate follow suit?

November marked the third straight month in which sales volume and pricing of Houston real estate increased year over year, according to the Houston Association of Realtors. November volume of single-family homes rose 32.8 percent compared to November 2008, while total sales soared 37.1 percent (www.har.com).

While December sales data for the Houston area are not yet available, it seems as if Space City may be eluding a startling trend. In the wake of the debilitating housing market collapse, the National Association of Realtors Pending Home Sales Index climbed for nine consecutive months prior to the November decline.

The Pending Home Sales Index is a “forward-looking indicator based on contracts signed,” (www.realtor.org). Despite the November drop, however, it should be noted that the National Association of Realtors results are 15.5 percent higher than November 2008.

According to NAR chief economist Lawrence Yun, a decline was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” Yun said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own,” (www.realtor.org).

The first-time home buyer federal tax credit of up to $8,000 was extended through April 30, 2010. Furthermore, the government has offered a credit of up to $6,500 for any repeat buyer who has lived in his or her current residence for at least five years. With interest rates at historic lows, buyers have finally started to leave the sidelines in order to take advantage of the market.

It remains to be seen whether or not the Houston real estate market mirrors national figures. Each region of the country, after all, exhibits different characteristics.

The Northeastern real estate market, for example, is relatively quiet this time of year. Houston, in contrast, still offers manageable winter weather and selling opportunities. It certainly seems, though, that the time to consider purchasing Houston real estate has arrived. Whether the masses feel the same will soon be determined.

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Mark W. Martin is President of 2M Realty. He is active in real estate sales and develops land in the Houston real estate market. Areas of current development include the Conroe real estate, New Caney real estate and Porter real estate markets.

2M Realty has simple goals in mind: Simplify the real estate process, reduce stress for Buyers and Sellers, earn client trust, and keep client trust. These simple but lofty goals are backed by over 20-years experience as a Texas real estate broker and Houston Realtor.