"First quarter 2010 figures were up compared to 2009, despite sales being down in January and February," says Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M. Gaines notes that the positive year-over-year gain was due solely to significant March sales being strong enough to bring up the whole quarter.

"With March's increased figures we are cautiously optimistic that we'll continue to see positive results in the second quarter," he adds. While the March uptick is positive, the next two quarters will determine the real strength of the Texas real estate market for 2010, Gaines maintains. He thinks the second quarter should continue to show positive improvement due to increased demand and government incentives, notably the federal homebuyer tax credit, which expired April 30. The third quarter, typically the best quarter in the year, "will show us how well the market can sustain itself."

Mark Fuller is a leading real estate professional specializing in Luxury Homes In Houston Texas.