REAL ESTATE: 2011 ENDS ON A HEALTHY NOTE FOR THE HOUSTON REAL ESTATE MARKET
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."
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% |
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% |
December sales of single-family homes in Houston totaled 4,604, up 7.2 percent from December 2010. This marked the seventh consecutive increase of 2011. Broken out by segment, December sales of homes priced below $80,000 rose 10.2 percent; sales of homes in the $80,000-$150,000 range were up 3.1 percent; sales of homes between $150,000 and $250,000 climbed 7.3 percent; sales of homes ranging from $250,000-$500,000 advanced 12.8 percent; and sales of homes that make up the luxury market—priced from $500,000 and up—were unchanged.
At $219,791, the average price of single-family homes was statistically flat compared to last December. At $160,000, the median sales price for single-family homes reached a December high for Houston, rising 1.9 percent year-over-year. That compares to the national single-family median price of $164,100 reported by NAR.
HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In December 2011, existing home sales totaled 3,755, a 7.7 percent increase from December 2010. The average sales price edged up 0.9 percent from last year to $203,253 and the median sales price was flat at $145,000.
December sales of townhouses and condominiums rose 3.2 percent compared to one year earlier. In the greater Houston area, 388 units were sold last month versus 376 properties in December 2010.
The average price climbed 2.5 percent to $173,675 from December 2010 to December 2011. The median price of a townhouse/condominium declined 4.9 percent to $131,750.
The demand for Houston lease properties that prevailed throughout 2011 continued in December, though at a slower pace. Single-family home rentals rose 12.3 percent compared to one year earlier and year-over-year townhouse/condominium rentals ticked up 0.7 percent.
As HAR reported throughout year, this demand was largely perceived as the result of hiring gains that have drawn consumers to Houston from around the U.S. These consumers may not be prepared or capable of purchasing a home for various reasons, among them tighter mortgage lending criteria. According to the Greater Houston Partnership, as of November 2011, the Houston metropolitan area gained 170,700 net new jobs, recovering 112 percent of the 152,800 jobs lost during the recession.
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
REAL LIVING: PULTE HOMES IN CINCO RANCH IN KATY, TEXAS
REAL CONNECTIONS: CONNECTING TO THE RIGHT CUSTOM HOME BUILDER
GETTING REAL: HOW WILL YOU INSPIRE?
From “1984” to 2011, Steve Jobs inspired us to prevail. How will you inspire others to prevail in 2012? How can you help those dollars that you spend work better for you? Simply, you must find a way to inspire your prospective customers to want to do business with you or buy your product. One way to learn how to do this is to study who (or what) excels in inspiring you to buy something, do something, etc. From “1984” to 2011, Steve Jobs inspired us to prevail. The commercial “1984” is also considered to be the best – super bowl or commercial spot ever. It inspired change. It inspired us to want more. And most importantly it spoke the right words to the right people to inspire action. “... it is based on George Orwell’s book 1984, in which society is controlled by Big Brother and is being watched/heard night and day. On top of this, they are fueled with hatred for the past and other societies other than their own. And in 2011, Steve Jobs did it again. The campaign for iPad2 inspired us to believe, to leap forward, to never stop, and to learn new things. With words that speak to the heart of consumers, Steve Jobs and the “1984” and 2011 iPad2 commercials made us long for something more, something better – he made us long for magic. He made us want to prevail.
by Christy Stratton
Rationally we must look at advertising and marketing as a practice that calls attention to a product, service, need, etc., but I think we would all agree that personally our most basic goal of marketing or advertising is to ultimately sell our product, service, need, etc. When we spend our hard-earned dollars on a medium to help us obtain more customers, we certainly want them to bring in sales.
Many believe that Steve Jobs was the best marketer to ever grace our planet. I have to say that I agree. May he rest in peace.
To better explain, here is a commentary on the video that is listed with a “1984” video on YouTube:
“1984” the commercial is based around one of the Two Minute Hate scenes, in which Apple’s case, the young woman in red shorts is suggesting Apple Macintosh will give people freedom in computing like never before (IBM was the main competitor at the time). The crowd of emotionless people is made up of the members of the Big Brother society, taking in all the propaganda. The old chap in the large screen is Big Brother.”
How will you make your customers long for something more, something better – for magic and to prevail?
As you step into 2012, take the time to think about what sort of marketing or advertising inspires you to make a change in your normal buying habits or to purchase something that you’ve always wanted or possibly thought you would never buy. Research it. Study and see what you can learn. Then apply it, inspire, and prevail.
REAL GOOD: STAND UP AND BE RECOGNIZED
REAL ESTATE: 2012 GHBA ANNUAL FORECAST LUNCHEON – THERE’S NO BETTER PLACE TO BE IN BUSINESS ON EARTH!
by Christy Stratton
Dr. Mark Dotzour, Chief Economist of the Real Estate Center at Texas A & M University joined the GHBA, its members, and many other real estate professionals at the Westin Galleria on January 10, 2012, to deliver his forecast for 2012.
And deliver he did, in a very real, honest and encouraging manner, starting with, “There is no better place to be in business on Earth,” when referring to Houston. “There’s business happening here!”
Mr. Dotzour also said, “Real life hasn’t gone away. The real things that influence business are still the same and real.” Profits, cash, manufacturing orders, the dollar, merchandise sales, leading indicators, as well as employment and growth rates all have us primed for a “spring-loaded” economy.
But the bottom line is debt. “He have too much debt,” Dotzour said. And that’s just part of it. Dotzour says this overall summary is this, “Making Business Investment Decisions in a World of Continuous Exogenous Shocks.”
The shocks that Mr. Dotzour referred to are those shocks that come out of nowhere and that you can’t plan for. He said, “We need stable conditions where you can plan, execute and profit.” And, “Housing is the key.”
We all need to ask what the 5 things are that we can do in the next 60 days to increase flow in single-family home sales,” Dotzour exclaimed. Some ideas are:
Lend – Banks have the capacity to lend
Buying – Folks need to start buying again
2004-2008 – Forget it! Pretend it didn’t happen.
Regulations – Loosen them
Dotzour pointed out additional positives that further spring-load us. People are moving into apartments because they can’t qualify for or afford homes. This will lead to the increase in rental rates, thus pricing them back into single-family homes. And inventory levels sit at only 6.5 months, and housing prices remain stable.
To wrap up, Mr. Dotzour left us with this, “We can expect modest growth for 2012. We’ve got quality job growth, low mortgage rates, housing is very affordable at today’s rates, sustained rent increases in apartments, and foreign investors are parking money in America.”
Other than the shocks, which we cannot necessarily control, 2012 is looking good Houston. Let’s get in there ask those questions and continue to make Houston a place where business is happening!
REAL LIVING: THE CLOSER WOODS
If you haven't been out to Auburn Lakes in Houston, Texas, you simply have to check it out! Click to watch and experience the beauty of Auburn Lakes, The Closer Woods. A great location for reaching major Houston thoroughfares and employers as well as beautiful First Texas Homes - and this is just beginning of the long list of amazing features of First Texas Homes in Auburn Lakes!
REAL CONNECTIONS: A VERY BELATED MERRY CHRISTMAS FROM CONNECTING HOUSTON HOME
by Christy Stratton
I received a Christmas card before Christmas from 'FamilyTalk.org' and thought the message it contained was quite purposeful. I couldn’t have found better words at the time for the season that could help express the essence and nature of the work that we are committed to at Connecting Houston Home, so I thought I’d adapt and share as a wish of Merry Christmas to you and yours:
“Merry Christmas to our beloved friends! How quickly we have careened through the past 6 months. I wish we could drop by for a neighborly visit with each of our friends and supporters. We would bring a basket of home-baked goodies and sip a cup of apple cider in front of your warm fire. Perhaps that world does not exist anymore, but I refuse to believe that it is gone. Even in the rush and hubbub of everyday, real living, I am convinced that people still care about each other and want to link arms in fellowship. May we never get too busy to reach out and connect with one another.”
May you carry a never-ending Christmas Spirit and have the best year ever in 2012 – The Connecting Houston Home Team
GETTING REAL: IN HONOR
by Christy Stratton
My dad was the wind beneath my wings, with the encouraging words he spoke to me from the time I was a ‘little tike’ and all through my life, to the ideas he always shared with me, and so much more. Very sadly, my dad went to be with our Lord on December 23rd, but the wind, wings, encouragement and ideas will remain forever.
In honor of my father, here is just one of his ideas he shared with me on December 5, 2011:
“Here is an idea that you can pass along to those who shred . I started using the shredded paper from the office as mulch in my garden. It is easy to apply and is completely organic. After applying it, spray it with water to secure it. It packs like paper masche (this word completely threw spell check) to form a weed barrier but will let water through. If you don't like the white color, cover it with pine needles. This makes excellent mulch that prevents weeds, conserves moisture, is 100% organic, reduces the waste that we add to our dump sites and it is free. It will decay in a couple months and can be worked into the soil to improve soil quality. Oh, by the way, it has been sold as a lost circulation for drilling fluid for many years.”
Logical, simple and effective ideas streamed from my dad. He was an admired and loved man in our household, on his block, by his friends and family, and in the Oil & Gas industry. This little blog is only a tiny way I can continue to honor my father and his legacy; it doesn’t even begin to touch the honor I feel to have been so blessed to have my dad, as my dad.
REAL CONNECTIONS: A GIFT FOR YOU – ‘HOW TO’ VIDEO FOR CUTE AND AFFORDABLE CHRISTMAS GIFTS