November prices are mixed as indicators reflect a healthy year-end market

HOUSTON — (December 20, 2011) — Consumers kept the Houston real estate market humming in November, accounting for the sixth consecutive month of positive home sales this year. The year-over-year increase in single-family homes sales, along with another rise in pending sales and further decline in months inventory, reflects a market that continues to benefit from a healthy absorption of housing inventory as 2011 winds down.

November sales of single-family homes rose 11.4 percent versus one year earlier, according to the latest monthly data prepared by the Houston Association of REALTORS® (HAR). On a year-to-date basis, sales were up 4.1 percent. All segments of the housing market experienced growth except for the luxury segment—those homes priced from $500,000 and above—whose decline pulled down the overall average price. The median price saw its biggest increase since February of this year.

“The November report contains a lot of positive data that suggests the Houston real estate market is wrapping up 2011 on solid footing,” said Carlos P. Bujosa, HAR chairman and VP at Transwestern. “The Greater Houston Partnership has forecast that our region will add more than 84,000 jobs next year, and as long as that’s the case, we would hope to see further strengthening of the local economy, including real estate.”

The single-family home median price—the figure at which half of the homes sold for more and half sold for less—reached the highest level for a November in Houston, climbing 2.6 percent to $154,950. The average price declined 4.8 percent from November 2010 to $206,969, but still managed to achieve the second highest level for a November in Houston.

Foreclosure property sales reported in the Multiple Listing Service (MLS) increased 9.2 percent year-over-year in November. Foreclosures comprised 20.2 percent of all property sales, which is consistent with the levels they have maintained since May of this year. The median price of foreclosures in October ticked up 0.8 percent to $80,000.

November sales of all property types in Houston totaled 4,676, up 10.6 percent compared to November 2010. Total dollar volume for properties sold during the month rose 4.4 percent to $942 million versus $903 million one year earlier.

November Monthly Market Comparison

The month of November brought Houston’s overall housing market positive results when all sales categories are compared to November of 2010. Total property sales and total dollar volume rose on a year-over-year basis. The median price climbed to an historic high for a November in Houston. Although the average price declined, it recorded its second highest level for a November in Houston.

Month-end pending sales for November totaled 3,013. That is up 16.6 percent from last year and suggests another positive month of sales when the December figures are tallied. The number of available properties, or active listings, at the end of November declined 13.0 percent from November 2010 to 45,113. The inventory of single-family homes dropped to its lowest level since January 2010—6.2 months, compared to 7.6 months one year earlier. That means it would take 6.2 months to sell all the single-family homes on the market based on sales activity over the past year. The figure is significantly better than the national inventory of single-family homes of 8.0 months reported by the National Association of REALTORS® (NAR). These indicators all continue to reflect a balanced real estate marketplace for Houston.

CATEGORIES	NOVEMBER 2010	NOVEMBER 2011	PERCENT CHANGE
Total property sales	4,229	4,676	10.6%
Total dollar volume	$902,512,984	$942,179,593	4.4%
Total active listings	51,875	45,113	-13.0%
Total pending sales	2,583	3,013	16.6%
Single-family home sales	3,568	3,973	11.4%
Single-family average sales price	$217,421	$206,969	-4.8%
Single-family median sales price	$151,000	$154,950	2.6%
Months inventory*	7.6	6.2	-17.7%

* 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.

Single-Family Homes Update

Townhouse/Condominium Update

Lease Property Update

Houston Real Estate Milestones in November

Volume of single-family home sales rose for a sixth consecutive month;

Volume of townhouse/condominium sales increased for the fifth straight month;

At $154,950, the median sales price for single-family homes reached the highest level for a November in Houston and marked its biggest increase since February 2011;

Single-family home rentals rose 13.5 percent;

Townhouse/condominium rentals increased 4.1 percent;

6.2 months inventory of single-family homes is the lowest level since January 2010 and compares favorably to the national average of 8.0 months.

The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by REALTORS® throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 50,000 properties may be found on the Internet at http://www.har.com.

The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)

Founded in 1918, the Houston Association of REALTORS® (HAR) is a member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual dues-paying membership trade association in Houston as well as the second largest local association/board of REALTORS® in the United States.