February sales of single-family homes dipped 2.2 percent versus one year earlier. The popular middle segments of the Houston housing market, consisting of homes priced between $80,000 and $250,000, experienced declining sales while the low and high ends saw increases—the most dramatic among the $500,000-plus luxury segment.

For the second straight month, luxury home sales helped boost the average price of a single-family home, which climbed 6.6 percent from February 2010 to $214,039. The February single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 3.9 percent year-over-year to $151,900.

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

Foreclosure property sales reported in the Multiple Listing Service (MLS) declined 16.5 percent in February compared to one year earlier.

Foreclosures comprised 21.5 percent of all property sales in February, down from the 24.7 percent share they claimed in January. The median price of February foreclosures fell 8.1 percent to $79,000 on a year-over-year basis.

February sales of all property types in Houston totaled 3,906, down 0.4 percent compared to February 2010. Total dollar volume for properties sold during the month rose 4.7 percent to $790 million versus $755 million one year earlier.

"The February housing report is encouraging if you recall that a year ago the federal government was rolling out the first-time home buyer tax credit, and consider the fact that home buyers today face more stringent lending guidelines than ever before," said Carlos P. Bujosa, HAR chairman and VP at Transwestern. "While we anticipate growth in the Houston real estate market this year, we do not expect it to come all at once," Bujosa said.

"Factors that give us cause for at least cautious optimism in the months ahead are that local employment figures have been strong and that we are about to enter the spring home buying season."

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