Declines in the sales and pricing of homes throughout the greater Houston area eased in March, according to new monthly data released late April by the Houston Association of Realtors. Overall March property sales fell 18.9 percent and sales of single-family homes dropped 16.1 percent versus March 2008. From February to March of this year, however, overall property sales volume increased 26.1 percent while sales of single-family home rose 27.8 percent as the spring began, a period that traditionally produces higher sales volume than the fall and winter months.

At $145,000, the March single-family home median price – the figure at which half of the homes sold for more and half sold for less – fell 4.4 percent year-over-year, but still attained its highest level of 2009. When foreclosures are removed from the analysis, the median price of traditional single-family homes was flat at $168,000. The average price of a single-family home in Houston dropped 6.0 percent last month to $193,880 compared to March 2008. The median and average price declines mark the smallest drop since levels first turned negative last October.

While sales of foreclosure properties, which typically sell below market prices, continued to weight home prices last month, the effect was milder than in previous months. In March 2009, foreclosures made up 24.5 percent of all single-family home sales in the Houston area compared to 34.0 percent in January and 28.0 percent in February. The median price of March foreclosure sales reported in the MLS tumbled 11.3 percent from $94,700 to $84,000 on a year-over-year basis.


Sales of all property types in Houston for March totaled 5,022, off 18.9 percent compared to March 2008. Total dollar volume for properties sold during the month was $940 million versus $1.2 billion one year earlier, a 23.2 percent decline.

Demand for rental properties rose again in March, with leases of single-family homes up 4.3 percent on a year-over-year basis and leases of townhouses and condominiums up 26.6 percent. Leases of high rise units rose 82.0 percent, a figure that tends to be more variable because of the comparatively small number of units involved.

“It’s too soon to predict exactly when the Houston real estate market will be in healthier territory, but the recent moderation in sales and pricing trends is an encouraging sign,” said Vicki Fullerton, HAR. “For consumers with good credit, this is an outstanding time to buy a home in the greater Houston area because mortgage interest rates are at 50-year lows and there’s a plentiful supply of reasonably priced housing inventory. First-time home buyers also have until December 1st to take advantage of an $8,000 tax credit that does not require repayment,” she added.