Houston Market Update October 2007: It's a Yawn

by DeeinAustin™

Houston housing market statistics are in for October 2007. Unlike Austin, Houston is in a buyer's market. The latest market update isn't horrible...but it's also not great. In fact, I have to say that they're sort of ho-hum.

Keep in mind that ho-hum is not a bad thing when other markets are seeing double-digit depreciation. Houston has long been a pretty stable real estate market. Unlike Austin and Dallas, you won't see wild appreciation in Houston, but you also won't often see the bottom fall out of their housing market.

According to the October 2007 Houston Board of REALTORS (HAR) statistics, the average days on market for single family homes is 83 days (correction). By comparison, the average days on market in Austin is less than 70 days, so buyers in both areas should be dealing with multiple offers on well-priced homes.

What type of market are you in?

• Buyers market: Greater than 6 months inventory
• Neutral Market: 4-6 Months inventory
• Seller's Market: Less than 3 months inventory

Most U.S cities have greater than 6-9 months inventory, so unless you live in Texas, you are most likely experiencing a buyer's market. The buyer's markets will probably continue at least until next summer or until lenders offer more mortgage options for stated or low-income buyers. 

VIEW THE OCTOBER 2007 HOUSTON REAL ESTATE MARKET STATISTICS 

Click the insert to view the October 2007 market data. I didn't want to rehash what HAR already outlined in their report, so you can view the full market analysis online.  Some of the information that jumped out is that

Houston Real Estate Milestones in October:

• On pace for second best year on record;
• Highest average single-family sales price for month of October;
• Third best October ever for single-family home sales;
• First decline in active listings since December 2006.

RELATED STORIES

Dallas prices up, but sales slower

October Austin Market Update

Track Texas Real Estate Markets Online for Free

Comments

[anonymous]

I think you are mixing average days on the market and months of inventory. From your table, it looks like Houston has 6.2 months of inventory. Austin is at about ~5.3 months I believe. The press release states Houston's average days on the market is 81 days, and I'd bet Austin is 65-69 days.

[Dee Copeland]

Thank you very much for that clarification. I wrote the blog late at night and missed the numbers. I'll post a correction!

[Joana]

Well, certainly after going through the post, even I went in a grim feeling. The situation looks quite uncertain, and all we can do is keep our fingers crossed and wait. I have been an agent for some five years, I know it is no big deal but still these years have been my formative years. It has folded me into what I am now. Well, the experiences that I have gained has taught me, a lot on the way the market works. I have learned to be careful in the the lull of a storm. Panic is one thing that really adversely affects a market. Thus through optimism only we can conquer the market, do think about it is no Utopian farce.

[Dee Copeland]

I wouldn't see the need to feel grim. Houston will always be a great place to invest. It's such a large city that there's always opportunity. A buyer or investor just needs to keep in mind that, in ANY market, they have to be careful.

I've seen people lose their shirts in "hot" markets just as much as slower sales markets. Right now, the buyers are laughing all the way to the bank.