When compared to the tax credit incentivized closed sales of May 2010, there were fewer home sales recorded in May 2011, according to the Multiple Listing Service (MLS) report prepared by the Houston Association of Realtors (HAR). At the same time, the number of listings that went under contract this May and expected to close in the next 30 to 60 days was up more than 35 percent when compared to May 2010—yet another comparison that is skewed by the tax credit that required buyers to enter purchase contracts by the April 30, 2010 deadline.

"Getting an accurate read on the Houston real estate market remains challenging because the 2010 tax credit prompted a surge in home sales during the first half of last year that otherwise would have occurred throughout the summer," said Carlos P. Bujosa, HAR chairman and VP at Transwestern.

The average price of a single-family home jumped 6.5 percent from May 2010 to $220,210. The May single-family home median price—the figure at which half of the homes sold for more and half sold for less—climbed 3.2 percent year-over-year to $157,900. Both the average and median price reached the highest levels for a May in Houston as well as for 2011.

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

Volume continued to soar among rental properties, confirming reports that while many new residents may be moving to the greater Houston area, they are as yet unable or unwilling to buy a home possibly due to more stringent mortgage lending requirements, an inability to sell the homes they've left behind, or a combination of these or other factors.

According to the latest HAR report, May single-family home sales fell 11.9 percent versus one year earlier. However, the 5,043 single-family homes that did sell represent the highest monthly volume recorded since June 2010, just after the tax credit expired. The under-$80,000 and above-$500,000 segments of the market experienced increased sales last month.

Foreclosure property sales reported in the MLS decreased 3.0 percent in May compared to one year earlier. Foreclosures comprised 19.8 percent of all property sales, down from 22.0 percent in April and 23.5 percent in March. The median price of May foreclosures fell 11.2 percent to $79,000 on a year-over-year basis.