Local Home Sales Decline, While Prices Climb
Houston Association of REALTORS® (HAR)
Releases October Market Update
Sales of existing single family homes declined across all areas of Northeast Houston for the second consecutive month, according to the Multiple Listing Service Market Update released by the Houston Association of Realtors (HAR).
The number of homes sold in HAR Area 32 (Kingwood) dipped 31 percent this October versus last year. Area 1(Atascocita/Humble) was down 28 percent and Area 40 (Montgomery County Southeast) took a 30 percent hit this October. The Houston market overall fared slightly better with 23 percent less homes sold this October than last year.
Keep in mind that the October 2009 sales figures are reflective of the federal government’s First Time Home Buyers’ Tax Credit which was in effect last year, inflating the number of home sold.
This October, buyers had a wider range of homes to choose from versus last year. Active listings in October remained strong compared to 2009 with 32 percent more homes on the market in Kingwood, 30 percent more in Atascocita, and 27 percent more in Montgomery County Southeast.
October’s results finally dropped Montgomery County Southeast out of the Top 10 for the HAR Hotness Ratio determined by pending sales as a percent of active listings. The area which includes Oakhurst, Kingwood, enjoyed seven consecutive months of sales gains earlier this year.
Meanwhile, home sellers are seeing higher purchase prices in two Northeast Houston areas. The median home price in Montgomery Country Southeast jumped last month, improving 12 percent to $170,400. Kingwood also saw a hefty gain in median price in October, climbing to $190,000 which is a 9 percent gain over last year.
Atascocita was the only local area in which home prices saw a slight down turn. The median price was down 2 percent this October to $139,500. In comparison, home prices in the Houston market overall were relatively flat with a 1 percent increase this October versus a year ago.