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.

* 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

November sales of single-family homes in Houston totaled 3,973, up
11.4 percent from November 2010. This marks the sixth consecutive
increase of the year. On a year-to-date basis, sales are ahead 4.1
percent.

Broken out by segment, November sales of homes priced below $80,000
rose 10.9 percent; sales of homes in the $80,000-$150,000 range climbed
11.3 percent; sales of homes between $150,000 and $250,000 were up 17.7
percent; sales of homes ranging from $250,000-$500,000 advanced 13.0
percent; and sales of homes that make up the luxury market—priced from
$500,000 and up—dropped 5.7 percent.

At $206,969, the average price of single-family homes declined
4.8 percent compared to last November. It nonetheless achieved the
second highest pricing level for a November in Houston. The depreciation
resulted from the lower volume of luxury home sales. At $154,950, the
median sales price for single-family homes reached a November high,
rising 2.6 percent year-over-year, its biggest increase since February
2011. The national single-family median price reported by NAR is
$161,600, illustrating the continued higher value and lower cost of
living available to consumers in Houston.

HAR also breaks out the sales performance of existing
single-family homes throughout the Houston market. In November 2011,
existing home sales totaled 3,224, a 12.8 percent increase from November
2010. The average sales price declined 6.3 percent from last year to
$194,008 and the median sales price edged up 1.5 percent to $139,000.

Townhouse/Condominium Update

The number of townhouses and condominiums that sold in November rose
1.6 percent compared to one year earlier, marking the fifth straight
monthly sales increase. In the greater Houston area, 322 units were sold
last month versus 317 properties in November 2010.
The average price climbed 8.4 percent to $172,658 from November 2010 to
November 2011.

The median price of a townhouse/condominium rose 10.2 percent to
$135,000. Both average and median prices were the highest ever for a
November in Houston.

Lease Property Update

Heightened demand for
Houston lease properties persisted in November. Single-family home
rentals rose 13.5 percent compared to one year earlier and
year-over-year townhouse/condominium rentals climbed 4.1 percent. HAR
has reported throughout much of 2011 that this demand has been largely
driven by hiring gains that have drawn consumers to Houston from around
the country. These consumers may not be ready or able to purchase a home
for various reasons, among them more stringent mortgage lending
requirements.

Houston Real Estate Milestones in November

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