Sales of Single Family Homes and Short Sale Properties Fell in Houston

by Simon Lindsay on Foreclosures

Sales of residential properties in Houston, Texas fell in October 2010, but home prices are up when compared with the previous year. The figure includes new homes, foreclosed residences and those sold as short sale properties.

Despite the sales drop, the housing market is in good shape as average and median prices for newly built dwellings and existing houses that include foreclosure homes in Houston have risen when held against price ranges recorded in October 2009. Analysts stated however, that the federal government's tax credit initiative has artificially inflated sales figures for residential properties in 2009, making it difficult to get precise sales and price data.

Buyers who purchased new houses and Texas foreclosures for sale remained few, making October the fourth month in a row that sales have dropped in the city. The number of single family dwellings sold in October reached 3,739, representing a decline of 23.3% when compared with the October 2009 total of 4,877.

Total number of properties sold, which includes short sale properties and all types of real estate, also fell for the month. Around 4,404 real properties were purchased during October 2010 in Houston, representing a 23.8% decline when compared with the 5,777 that were sold in October 2009.

For people who purchase bank foreclosure properties, last year would have been a better time in terms of prices. As of October 2010, single family dwellings' average selling price is pegged at $208,459. This is 5.6% higher than the October 2009 average price of $197,445. In terms of median selling price, single family houses also posted an increase compared with 2009.

October 2010 median sales price is $150,000 which is 0.7% higher than the $149,000 median price recorded in October 2009. Pending home sales in October 2010 were pegged at 2,821, representing a decline of 23.3% compared with a year ago. Housing analysts stated that this means that home sales for November 2010 are also likely to be lower than November 2009.

Single family housing inventories in the city for the month, including newly built and those available as foreclosures and short sale properties, were good for almost eight months at 7.7, but are much better than the national average of 10.7.