SterlingResidential.com | Buying & Selling Residential Properties in Texas | Houses for Rent Houston Area | Humble Atascocita Kingwood & Spring Texas Realtors | Sterling Residential®, Realtors® | Real Estate Broker: February 2008: No trends evident as results remain mixed -- sales down 13.1% & median price up 3.1%

Residential Housing Market Summary

• Houston’s residential housing market performance for February 2008 reflects a steady sales rate and stable home prices despite some negative trends reflected in the MLS activity — there are no distinct trends or sharp changes notable in February’s numbers when compared to previous monthly activity. Sales were down 13% and the median price was up 3.1%, reflecting the mixed local housing picture. Despite six consecutive months of sales declines, the median home price has not yet posted any significant decreases in property values. During the 1st half of 2007, Houston’s home sales maintained a pace nearly equal to the record peaks of 2006. As we near the mid-year point in 2008, we’ll be watching to see if this sales keep pace with the 2nd half of 2007, when sales volumes began dropping.


• Sales for all property classes declined 13.1% in February year-to-year comparisons — sales for single-family homes declined 11% when compared to February 2007. Nationally, existing-home sales were down 23.8% from last February.


• Sales were weakest for properties priced between $80,000 and $200,000, declining 17.9% in February year-to-year comparisons. In the same year-to-year comparisons, sales between $200,000 and $500,000 were up 0.4% and sales priced above $500,000 were up 12.2%.


• Single-family prices rose 3.1% in February 2008 — the median single-family price was $151,430 as compared to $146,940 for February 2008. For the US market, the median price declined 8.2% from $213,500 to $195,900 for the month.


• Pending sales — listings under contract expected to close within 30 days — declined 10.1% when compared to February 2007. In month-to-month comparisons, pending sales increased 1.3% from January 2008.


• NAR’s Pending Home Sales Index — a forward-looking sales indicator — was down 1.86% in February 2008, indicating that future home sales on the national level are expected to decline in coming weeks.


• Inventory Supply was at a 6.1 month supply in February — up 1.7% from January 2008 and up 19.6% from February 2007. At a 6.1 month supply, Houston inventory remains below a national housing supply of 9.6 months.


• Days-on-market (DOM) — was 92 for February 2008, unchanged from January 2008. It’s the highest DOM for the last three years and an 10.8% rise from February 2007’s 83 DOM

Houston Residential Housing Closed Sales — February 2008

Existing home sales were down for the 6th consecutive month in February 2008 — down 13.1% for all property types. Single-family sales were down 11%. Sales for townhouses and condos were also down by 22%. Multi-family, high-rise, and residential lot sales were down 44%, 10% and 34% respectively.

Homes priced between $80,000 and $200,000 were down again in February 17.9%. Sales for single-family homes priced between $200,000 and $500,000 were up slightly 0.4%, and sales for homes priced above $500,000 were up 12.2%.

Rental numbers were up again this month — single-family rentals were up 17.0% to 3,038. Despite recent rental growth, the median rental price remains stagnant at $1,200 as rental supplies have kept pace with demand.

Houston Single-Family Inventory Supply

Houston’s 6.1 month inventory supply remains below the national average existing-home supply of 9.6 months. Houston’s market has been able to absorb the additional listings at current sales paces, keeping inventory growth in check and the market in balance between buyers and sellers. Houston’s inventory has not grown past a 6.3 month supply during the last 12 months.

The number of available homes (active listings) at the end of February stood at 51,308, up 599 listings from January’s total of 50,709. When compared to February 2007, available listings are up 12.8%. Decreasing sales and active-listing growth could produce higher inventory numbers in coming months as we near the traditional selling season.

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Inventory describes the time it would take to sell available listings at the monthly average sales pace for the previous 12 months. Inventory below 5 months indicates a seller’s market, as buyers compete for limited housing. Inventory levels between 5 and 6 months reflect a balanced market. Inventory levels beyond 6 months are considered excessive.

February 2006 – 2008 Closed Sales by Price Class

Price Class	2006	2007	2008	Change
0 – $79K	450	463	523	13.0 %
$80K – $199K	2,921	3,062	2,513	17.9 %
$200K – $499K	1,112	1,190	1,195	0.4 %
$500K +	205	222	249	12.2 %

Houston Year-to-Year Comparison Feb 2007 – 2008

February	2007	2008	Change
Sales Closed	6,058	5,266	13.1 %
Median Price	$146,940	$151,430	3.1 %
Active Listings	45,466	51,308	12.8 %
Pending Listings	4,807	4,323	10.1 %
Month’s Inventory	5.1	6.1	19.6 %
Days On Market	83	92	10.8 %

Weekly Average Rates — Last 390 Days

The mortgage picture is changing daily, but qualified buyers are securing financing. If the secondary market liquidity is corrected and investments in mortgage securities increases, we should see a gradual decrease of interest rates. Currently, it’s a lack of secondary market liquidity that’s adding volatility to mortgage rates — since January rates have fluctuated between 5.50% and 6.2% for 30 year fixed-rate loans.

Mortgage rates, which tend to track long-term Treasury yields, rose during the last 60 days despite the Fed action to lower lending costs. Fears about mortgage securities risks are driving yields higher as investors are demanding larger returns in today’s high-risk climate. Credit-market issues could keep rates higher despite Fed action to lower short-term lending costs.

Sterling Weekly Market Updates

Download Sterling’s Market Intelligence Reports — weekly summaries illustrating real estate asking price trends and other important market metrics for NE Houston areas including Spring, Humble (Atascocita), Kingwood and Crosby, Texas.

These weekly reports are available free of charge and available online for a limited time. You can find out more here

Closed Sales | NE Houston Humble & Atascocita | HARMLS Area 1

Single-family sales were down 13.9% in year-to-year comparisons. Month-to-month sales increased 23.7% from January to February 2008. January’s sales were the lowest volume posted during the last 3 years since February 2005 when 126 sales were closed.

Charting single-family closed sales for the previous 18 months allows year-to-year comparisons and illustrates sales activity over time. Year-to-year comparisons are made to reduce seasonal variations.

Months Inventory | NE Houston Humble & Atascocita | HARMLS Area 1

Local inventory supply for NE Houston — Humble & Atascocita — single family housing rose to a 6.1 month’s supply from 6.0 in January 2008. In year-to-year comparison, inventory was up 15.1% from February 2007 when it was 5.3. The number of active listings increased slightly from January to February — from 1,378 to 1,389.

During much of the last 12 months, available listings grew faster than sales could remove them from the market place, raising inventory to a recent high of 6.5 months in September and October 2007. Since then, the number of active listings has decreased each month until January, helping reverse recent inventory growth.

At 6.1 months, the market remains relatively balanced — neither favoring buyers or sellers. However, buyers and sellers for homes priced between $80,000 and $200,000 may be experiencing market conditions favoring buyers as increased foreclosure activity and limited credit holds down existing and new home sales.

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Inventory describes the time it would take to sell available listings at the monthly average sales pace for the previous 12 months. Inventory below 5 months indicates a seller’s market, as buyers compete for limited housing. Inventory levels between 5 and 6 months reflect a balanced market. Inventory levels beyond 6 months are considered excessive.

Sales 2007 – 2008 | NE Houston Humble & Atascocita | HARMLS Area 1

February	2007	2008	Change
Sales Closed	194	167	13.9 %
Median Price	$149,950	$145,500	3.0 %
Active Listings	1,282	1,389	8.3 %
Pending Listings	157	174	10.8 %
Month’s Inventory	5.3	6.1	15.1 %
Days On Market	84	103	22.6 %

Closed Sales | N Houston Spring & Cypresswood | HARMLS Area 12

Single-family closed sales were down 13.5% from 155 closed sales in February 2007 down to 134 closed sales in February 2008 in year-to-year comparisons. Month-to-month sales dropped 4.3% from January to February 2008. February’s sales were the lowest volume posted during the last 2 years since February 2006 when 98 sales were closed.

Charting single-family closed sales for the previous 18 months allows year-to-year comparisons and illustrates sales activity over time. Year-to-year comparisons are made to reduce seasonal variations.

Months Inventory | N Houston Spring & Cypresswood | HARMLS Area 12

Local inventory supply for N Houston — Spring & Cypresswood — single family housing increase 4.7% in February 2008 to a 6.7 month supply. Declining active listing numbers helped reverse recent inventory growth — but active listings grew 3.1% between January and February 2008 from 1,104 to 1,127 active listings.

During much of the last year, available listings grew faster than sales could remove them from the market place, raising inventory to a recent high of 8.0 months in August 2008. Inventory growth was reversed in September and has declined steadily until this month’s increase.

At 6.7 months, the market is maintaining a relative balance between buyers and sellers — although an increasing trend will tend to favor buyers if listing growth out paces sales in coming months.

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Inventory describes the time it would take to sell available listings at the monthly average sales pace for the previous 12 months. Inventory below 5 months indicates a seller’s market, as buyers compete for limited housing. Inventory levels between 5 and 6 months reflect a balanced market. Inventory levels beyond 6 months are considered excessive.

Sales 2007 — 2008 | N Houston Spring & Cypresswood | HARMLS Area 12

February	2007	2008	Change
Sales Closed	155	134	13.5 %
Median Price	$114,500	$105,500	7.9 %
Active Listings	1,050	1,127	7.3 %
Pending Listings	139	138	0.7 %
Month’s Inventory	6.4	6.7	4.7 %
Days On Market	85	107	25.9 %

Closed Sales | NE Houston Kingwood | HARMLS Area 32

Single-family closed sales were down 11.9% in year-to-year comparisons. Month-to-month sales increased 27.6% from January to February 2008 from 58 to 74 sales. January’s sales were the lowest volume posted during the last 12 months since last January 2007.

Charting single-family closed sales for the previous 18 months allows year-to-year comparisons and illustrates sales activity over time. Year-to-year comparisons are made to reduce seasonal variations.

Months Inventory | NE Houston Kingwood | HARMLS Area 32

Local inventory supply for NE Houston — Kingwood area — single family housing increased 8.9% in February to a 4.9 month’s supply. Active listing growth and slower sales are reversing recent inventory declines — active listings grew 8.6% from January to February 2008.

During much of the last year, available listings grew faster than sales could remove them from the market place, raising inventory to a recent high of 4.8 months in September 2008. Inventory growth was reversed in October and continued to decline until January. Inventory has increased from 4.1 months to 4.9 months since December 2007.

At 4.9 months, the market favors home sellers — although the current inventory trend is up for the last two months. The number of active listings has grown from 446 in December to 520 in February — if active listing growth out paces sales, expect higher inventory numbers and a shift towards a neutral market favoring neither buyer or seller.

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Inventory describes the time it would take to sell available listings at the monthly average sales pace for the previous 12 months. Inventory below 5 months indicates a seller’s market, as buyers compete for limited housing. Inventory levels between 5 and 6 months reflect a balanced market. Inventory levels beyond 6 months are considered excessive.

Sales 2007 — 2008 | NE Houston Kingwood | HARMLS Area 32

February	2007	2008	Change
Sales Closed	84	74	11.9 %
Median Price	$151,430	$168,660	11.4 %
Active Listings	406	520	28.1 %
Pending Listings	76	60	21.1 %
Month’s Inventory	3.6	4.9	36.1 %
Days On Market	84	101	20.2 %