May sales of single-family homes (including "new construction" listed by Realtors) throughout the Houston market rose 19.1 percent compared to May 2009. That follows increases of 10.8 percent in March and 26.7 percent in April. Sales volume showed increases in all single-family home pricing segments, with the largest hike taking place among homes priced between $80,000 and $150,000. That price range is influenced heavily by first time buyers.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market (a category that excludes all new construction). In May 2010, existing home sales totaled 4,864, a 23.3 percent increase from May 2009. The average sales price of $196,410 edged up 0.7 percent compared to last year while the median sales price of $145,000 dipped 0.7 percent from its May 2009 level.

The national single-family median price reported by NAR is $173,100, illustrating the continued lower cost of living that consumers enjoy in the Houston market.

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

While interest rates continue to hover at historic lows, industry leaders point to this summer as an ideal time for buyers to invest in property in Houston. At the same time, the number of sales per month is likely to drop off over the summer as the first time buyer credit likely created an early summer surge in demand, particularly in "entry level" price ranges that will taper off to typical seasonal levels, or lower, in the months ahead.

Fittingly, month-end pending sales for May—those listings expected to close within the next 30 days—totaled 2,991, down 17.8 percent from last year. The months inventory of single-family homes for May stretched slightly to 6.8 months compared to 6.2 months one year earlier, but remains better than the national months inventory of single-family homes of 8.4 months, reported by the National Association of Realtors (NAR).

Economists vary in their interpretation of what is considered a buyer's market versus a seller's market – but all agree that the chief indicator is the number of "months inventory" available. Conservative economists consider anything more than 80 days to be a buyer's market, while traditionally, most economists consider anything more than 9 months of inventory to be a buyer's market.

Based on this data and remarkably low interest rates, buyers can consider the Houston market ripe for opportune investment, but should not expect the same negotiation power and general market softness as seen in other, harder-hit areas of the country.

Mark can be reached by clicking on this link and viewing the Fuller Team website for Luxury Homes in Houston Texas.