Watch this video to see the same information in this article. See the Houston Housing Minute by HAR for the February 2013 real estate sales statistics and market overview in the video below:
By definition, a Seller's Market is where you have more Buyers than homes on the market waiting to be sold. In this situation, the Sellers have more control including being able to sell their home faster and compromise less on the sales price. However, don't get too cocky. In this digital world, Buyers can see how long your home has been on the market and if you are not careful, you can miss the boat in selling your home for the best price possible. But the good news is that homes priced right and priced to sell are getting multiple offers at the same time giving the seller more bargining room.
Per the statistics of the Houston-area REALTORS, this last February 2013, the Houston-area saw a 15.5 percent increase in sales over February 2012. The February marked the 21st consecutive month of increased home sales for the Houston area. Homes in the price range of $250,000 to $500,000 saw the greatest sales volume increase.
A key factor in the turn from a Buyer's market to a Seller's market is the decline in the number of foreclosures. Foreclosured property sales in the Houston MLS saw a decline of 23.4 percent compared to February 2012. More important, is the fact that foreclosures now only make up 15.8 percent of all property sales down from 19.6 percent in January 2013. Even more important is the fact that the median price of foreclosure sales prices climbed 7.7 percent.
At the end of the day, the #1 condition that controls whether the real estate market is a Buyer's market or a Seller's market is the availability of jobs so the Buyers have the income to buy the homes. In Trulia's article "2013’s Top 10 Healthiest Housing Markets", Houston, Tx ranked #1. The author of the article - Jed Kolko, Chief Economist - states:
..."The healthy markets that made the list have strong job growth (Bureau of Labor Statistics), which bodes well for housing demand; low vacancy rates (U.S. Postal Service)–low enough to encourage new construction, but not so low that inventory and sales are restrained; and low foreclosure inventory (RealtyTrac), since foreclosures tend to hold back recovery."
Currently the house turn rate for housing is 3.6 months. What does that mean? Basically, every 3.6 months there is a large turn over in the homes on the market ultimately meaning that homes are being sold faster. The 3.6 months is the lowest level since December 1999. Compared to the national level of 4.2 months per the National Association of REALTORS® (NAR), that makes the Houston area a hot real estate market.
The February 2013 home sales showed increases for most price ranges as follows:
- $1 - $79,999: saw a decrease by 18.0 percent
- $80,000 - $149,999: saw an increase by 14.4 percent
- $150,000 - $249,999: saw an increase by 25.6 percent
- $250,000 - $499,999: saw an increase by 33.2 percent
- $500,000 - $1 million and above: saw an increase by 24.4 percent
Houston continues to have a strong job market with a low housing inventory making this a great time to put your home on the market if you have been considering selling your home to make that move up to a larger home or down to a smaller home... or just to another part of the Houston area.
Feel free to use the Mapping feature on my website GreatHoustonProperties.com to see what homes are selling for in your area and what foreclosures are on the market:
If you are thinking of selling your home, call me to find out how much it is worth. Just call Jason Gracey of RE/MAX Vintage at (281) 376-2755 and make these steps to get your home on the market now while the market is hot!
The following articles were referenced for the development of this blog:
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.