At $149,050, the April single-family home median price – the figure at which half of the homes sold for more and half sold for less – held steady versus one year earlier. When foreclosures are removed from the analysis, the median price of traditional single-family homes rose slightly to $170,000. The average price of a single-family home in Houston dropped 5.8 percent last month to $194,222 compared to April 2008.

Sales of foreclosure properties, which typically sell below market prices, continue to taper. In April 2009, foreclosures made up 23.6 percent of all single-family home sales in the Houston area compared to 34.0 percent in January, 28.0 percent in February and 24.5 percent in March. The median price of April foreclosure sales reported in the Multiple Listing Service (MLS) tumbled 8.6 percent from $91,000 to $83,153 on a year-over-year basis.

Sales of all property types in Houston for April totaled 4,898, off 24.3 percent compared to April 2008. Total dollar volume for properties sold during the month was $920 million versus $1.3 billion one year earlier, a 28.9 percent decline.

Demand for rental properties rose again in April, with leases of single-family homes up 8.0 percent on a year-over-year basis and leases of townhouses and condominiums up 12.2 percent.

"The housing industry recovery will be a gradual process, but Houston continues to demonstrate the strength of its home values compared to other communities around the country where pricing ballooned and then bottomed out," said Vicki Fullerton, HAR. "Many HAR members are reporting growing activity among first-time home buyers who are taking advantage of historically low interest rates and the federal government's $8,000 tax credit. The real estate business typically picks up during the spring and summer months," she added.