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SALES STATISTICS ARE IN FOR FEBRUARY ’08; THEY TELL THE STORY

By
Real Estate Agent with Panoptic Realty Group

THE BASICS:

The decreased supply in the real estate markets due to the news media induced panic has increased prices!  The statistics are in for the February 2008 sales in the Houston Metropolitan area.  While total number of sales have decreased from one year ago (due to the aforementioned media driven panic), the average price of a home in the area has gone up by 5.6% over February 2007.  The median home sales price has also rose by 3.1% over February 2007.  All in all, this goes to show once again that Houston is an isolated and steady market compared to the rest of the nation.  There’s no reason to panic here!

MY ANALYSIS:

Demand to live in Houston has been high for over 15 years.  People move to Houston for many reasons; cheap cost of living, for jobs, and for the mild climate to name a few.  Houston is host to many oil, engineering and software companies.  Each of these industries have been growing for years.  These “attractions” toward Houston help to anchor our market steady.  So, in short, demand has remained virtually unchanged over the last year.
Supply-Demand Graph for Houston Housing


Supply has been affected.  The major influence on supply has been the sub-prime mortgage crisis, which has been blown out of proportion due to the media.  The crisis sparked a nation-wide decrease in prices.

With the crisis being a major national topic of discussion and on the news for the past 10 months, it has caused all sellers to believe this is a bad time to sell.  Many sellers have put off their plans and decided to wait, due to the scare, and this has caused a drop in the number of home sales over the last year.  With steady demand and a decrease in supply, prices rise; as indicated by Supply-Demand theory.

To sum it all up, if you are in the Houston Metro area, you have nothing to worry about.  Go ahead and sell that home and make your move.  With a reduction in supply and a constant demand, we have seen home prices appreciate here locally, while nation-wide the prices are depreciating.

-Michael

Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095
Don't worry Michael,  Texans are a smart, independent bunch.  It won't take them long to figure it out and start selling their homes and moving on with their lives despite the picture that the media paints.
Mar 19, 2008 03:16 AM
Anonymous
Jack Riley

This article on the Houston Chronicle web site doesn't appear to agree with your position.  This article says there IS a slowdown in The Woodlands.

 http://www.chron.com/disp/story.mpl/business/sarnoff/5487640.html

Apr 20, 2008 03:11 PM
#2
Michael Blount Jr.
Panoptic Realty Group - The Woodlands, TX
Broker
Jack -

 It looks to me like the Chronicle is painting the same picture.  Inventory (supply) is down, but prices are up; indicating at the least, a steady demand.  It states that "re-sales" and "new sales" are both down.  It doesn't stipulate any change in prices.  Prices actually did increase, and it's all backed up by HAR statistics.

Other factors unmentioned: The Woodlands is almost built out completely, and to be honest with you, the parts that are left are somewhat undesirable.  This also contributes to a decline in sales.  The large part of what is being currently offered is in Creekside Park, a Woodlands development in Harris County.  Creekside is separate from the "true" Woodlands, much as Harpers Landing is.  Those in Creekside don't enjoy continuity with The Woodlands, pay higher taxes, and are unable to attend Woodlands CISD schools.  As for the 400 acres mentioned in the article; they lie out at 2978 and Woodlands Parkway, behind the new Wal-Mart.  To I-45 in the morning, it's a 20 minute drive; realistically, the market for the area is limited to retiree's and those who work out toward Magnolia or Tomball.

 If I have left anything unanswered, please respond again.  Thanks
Apr 21, 2008 03:50 AM
Robert Monk
100% Realty, Inc. - Santa Rosa Beach, FL
Florida Real Estate

Hello Mr. Blount.  You have a very nice blog.  Do you know if the vacant lakefront estate property market for Montgomery Trace has improved?  Thanks.

Jul 22, 2008 07:08 AM