November 10th, 2010

 

It is rather calm here in the last quarter of 2010 but future growth predictions for Houston indicate it�s a calm before a storm. 

n      The Institute for Regional Forecasting (IRF) predicts that

n      3.7 million people and

n      1.5 million jobs will be added to the eight-county Houston MSA over the next 25 years.

n      Houston will experience a growth at

n      2.5 percent per year between now and 2020,

n       The population is predicted to grow to 7.4 million.

n      At the same time, about 700,000 jobs will be created in the area, according to the IRF annual long-term forecast.

 

According to a new report by Veros Real Estate Solutions, Houston is expected to post the nation�s strongest home price appreciation over the next year. Houston will help Texas lead the nation in terms of home price appreciation over the next 12 months.

 

As forecasters often say, demography is destiny and Houston is home to 38 top-ranked companies according to Forbes. What you currently have in demography tends to grow stronger over time. 

 

Here is a table depiction overview of the month and year-to-date:

	October 2010		October 2010 YTD
Metric	Amount	% Change From 9/09	Amount	% Change From 9/09 YTD
Sales	3,739	-23%	43,593	-4%
Dollar Volume Sold	$779,428,201	-19%	$9,173,236,739	-1%
Contracts written	2,374	-22%	27,999	-10%
# of Listings	33,641	24%	32,269	16%
Average Sales Price	$208,459	6%	$210,429	4%
Median Sales Price	$150,000	1%	$153,500	0%

 

Houston has many submarkets that look entirely different from the above overall market. For the hottest areas in October, click here .

For a breakdown of activity by area with a map, click here. 

Upscale homes have been least affected by the current market. Home sales priced $400,000 and above have experienced increases in sales over last year.

Homes priced $900,000-$999,999 have experienced a whopping 40% increase since last year. Homes priced $1,000,000 and more are up 9% in sales over this time last year.

 

What home price classes were the hottest selling in Houston October YTD? 

The following table indicates by price class the hottest selling price ranges in Houston through October YTD 2010:

 

Top Ten Selling Price Classes Houston Single-Family Real Estate October YTD 2010
Price Class	Sales Year to Date	Active Listings	Months of Inventory
1. $200,000-$249,999	4,350	3,531	8.1
2 $300,000-$399,999	3,222	2,883	8.8
3. $250,000-$299,999	3,124	2,602	8.3
4. $120,000-$129,999	2,429	1,755	7.0
5. $130,000-$139,999	2,308	1,682	7.0
6. $110,000-$119,999	2,187	1,702	7.6
7. $140,000-$149,999	2,010	1,606	7.9
8. $150,000-$159,999	1,970	1,501	7.5
9.     $80,000-$89,999	1,969	1,254	6.4
10.$100,000-$109,999	1,818	1,174	6.2

 As you can see from the Top Ten Selling Price Classes in Houston for 2010, hot selling prices ranged from $80,000-$399,000.

Months of Inventory have gone up in Houston with every month since April 30^th; the last date of the Homebuyer Tax Credit. Houston is currently in a buyers� market with a good supply of homes in almost every price range and 30-year interest rates currently at 4.25%. It�s a great time to buy a home in Houston.

To search for homes by price range, map and/or even foreclosures, click here.

 

In conclusion, based on the projections by Veros Real Estate Solutions and the statistics herein that support their findings, Houston is the strongest market in the nation in terms of home price appreciation. It is expected to see a 3.8% increase in home prices over the next year, more than any other U.S. city. When it comes to investing in real estate, the Houston-Sugar Land-Baytown market is the first one to consider.

 

Data provided by the Houston Association of Realtors® Multiple Listing Service, and The Real Estate Center for Texas A&M and written by Toni Nelson, Director of Strategic Initiatives for Prudential Gary Greene, Realtors®