December marks the seventh consecutive month of increased home sales; 2011 bests 2010 in sales volume and pricing

HOUSTON — (January 17, 2012) — After several months in which home sales figures were skewed by the effects of the 2010 homebuyer tax credit, the Houston real estate market concluded 2011 solidly in the black. December marked the seventh straight month of increased home sales and the month contained a host of indicators suggesting a healthy start to the new year. Prices of single-family homes across Greater Houston for full-year 2011 were up slightly from 2010. The median price reached an all-time high for a December in Houston and months inventory hit its lowest level in two years.

According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), December sales of single-family homes throughout the Houston market climbed 7.2 percent when compared to December 2010. Positive sales activity was recorded in every segment of the housing market except the luxury segment—those homes priced from $500,000 and above—which was unchanged year-over-year.

The average price of a single-family home was statistically flat at $219,791 compared to December 2010 while the December single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 1.9 percent from one year earlier to $160,000.

Foreclosure property sales reported in the Multiple Listing Service (MLS) increased 6.1 percent in December compared to December 2010. Foreclosures comprised 20.5 percent of all property sales, remaining consistent with the levels they maintained for much of 2011. December’s median price of foreclosures held steady on a year-over-year basis at $82,550.

December sales of all property types in Houston totaled 5,460, up 6.6 percent compared to December 2010. Total dollar volume for properties sold during the month increased 7.5 percent year-over-year to $1.16 billion. On an annualized basis, sales of all property types were up 4.3 percent compared to 2010 levels while total dollar volume rose 5.2 percent to $13 billion.

“2011 ended on a very promising note,” said Wayne A. Stroman, HAR chairman and President/CEO of Stroman Realty.”"We spent a good part of the year struggling to accurately gauge the market because we were comparing to accelerated sales in 2010 that resulted from the homebuyer tax credit. Once we distanced ourselves from that period, we saw clear indications of a healthy market with a balanced supply of housing inventory and strong pricing—conditions that put Houston in an enviable position compared to many housing markets around the country. The key to sustaining that positive momentum in 2012 will be continued improvement in Houston’s employment numbers.”

2011 Annual Market Comparison

The Houston housing market concluded calendar year 2011 with noteworthy gains in sales volume along with strong pricing. Single-family home sales rose 4.0 percent for the year while sales of all property types increased 4.3 percent. On a year-to-date basis, the average price rose 0.9 percent to $213,723 while the median price ticked up 0.7 percent to $155,000. Total dollar volume for full-year 2011 climbed 5.2 percent to $13 billion compared to full-year 2010.

CATEGORIES	FULL-YEAR 2010	FULL-YEAR 2011	PERCENT CHANGE
Single-Family Home Sales	51,556	53,606	4.0%
Total Property Sales	61,005	63,610	4.3%
Total Dollar Volume	$12,364,327,660	$13,012,903,352	5.2%
Single-Family Average Sales Price	$211,765	$213,723	0.9%
Single-Family Median Sales Price	$153,990	$155,000	0.7%

December Monthly Market Comparison

The month of December brought Houston’s overall housing market positive results when all listing categories are compared to December 2010. Sales of single-family homes as well as all property types rose along with total dollar volume. The median single-family price increased to its highest level for a December in Houston while the average price remained unchanged.

Month-end pending sales for December totaled 2,907, up 3.0 percent from last year and a signal that a further increase in demand is likely when the January figures are tallied. The number of available properties, or active listings, at the end of December fell 14.1 percent compared to December 2010. This absorption of housing inventory accounted for a 20.2 percent decline in months inventory to the lowest level since December 2009—5.8 months versus 7.2 months in December 2010. That means it would take 5.8 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 7.0 months reported by the National Association of REALTORS® (NAR). These indicators all continue to reflect a well-balanced real estate marketplace for Houston.

CATEGORIES	DECEMBER 2010	DECEMBER 2011	PERCENT CHANGE
Total property sales	5,122	5,460	6.6%
Total dollar volume	$1,079,022,599	$1,159,956,192	7.5%
Total active listings	49,005	42,083	-14.1%
Total pending sales	2,821	2,907	3.0%
Single-family home sales	4,295	4,604	7.2%
Single-family average sales price	$220,479	$219,791	-0.3%
Single-family median sales price	$157,000	$160,000	1.9%
Months inventory*	7.2	5.8	-20.2%

* 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 December

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

At $160,000, the median sales price for single-family homes reached the highest level for a December in Houston;

Single-family home rentals rose 12.3 percent;

Townhouse/condominium rentals increased 0.7 percent;

5.8 months inventory of single-family homes is the lowest level since December 2009 and compares favorably to the national average of 7.0 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.

$154,900