Signature Synapsis of the real estate market data for Pearland in November:

1. Sales up 35% – 158 properties were sold in Nov 2012 up from 117 in Nov 2011.
2. Prices up 10% – Median sold price was 195,000 up from 178,000 in 2011.
3. Inventories down 48.4%- Inventories are at 3.3 months down from 6.4 months in 2011.
4. New Listings down 13% – New Listings added were 164 down from 188  in 2011.
5. Under Contract properties up 28% – Properties under contract were 159 up from 124.
6. Days on market down 17% – Average days on market were 78  down from 94 in 2011.

Takeaways

The most interesting statistic in this Pearland real estate market report is probably the one no one will talk about: New Listings. In a market where home are selling in larger numbers, for more money and in a shorter amount on time new listings are actually down 13%. At the same time, properties under contract were up 28% pointing to a fast pace of sales for December as well. This means two things: First, Sellers whose home is already on the market will benefit from the tightening supply and have a higher chance of selling their Pearland home in December. And second, this represents an opportunity for Pearland home owners that might be considering to put their home on the market. There’s demand for your property and not enough homes to satisfy it. Pearland inventories are lower than the overall Houston average so this may be your window. If that’s you, call me on my cell at 713-922-2702 or contact me.

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For a printable copy of a visual market report for Pearland real estate in November follow the link below:

https://www.evernote.com/shard/s39/sh/583bc92e-d5cd-452d-87f3-317ed4ba1837/9291a200f8d6a70ec904fdbe4d73b853

.imelda via Compfight

November was a poster child for a real estate market in full swing in the Katy area. All indicators are pointing the right way and the market is showing no signs of slowing down despite the fact that the holiday season is among us. A quick synthesis of the real estate market data for Katy in November:

1. Sales up 15% – 359  properties were sold in Nov 2012 up from 312 in 2011.
2. Prices up 9% – Median sold price was 196,500 up from 179,000  in 2011. 
3. Inventories down 51%- Inventories are 2.3 months down from 4.8 months in 2011.
4. New Listings up 8% – New Listings added were 442 up from 409 in 2011.
5. Pendings up 31% – Properties under contract were 418 up from 320. 
6. Days on market down 18% – Average days on market were 55 down from 68 in 2011. 

It all makes perfect sense: Homes in Katy are selling at a faster pace so average days on market are falling and  inventories are shrinking tremendously. When inventories shrink, supply goes down which causes selling prices to rise. When builders observe the rise in demand and the short supply to satisfy that demand, they build more homes and bring more new listings on the market which are  “consumed by the higher demand” – hence, the increase new listing and  in pending sales. Last but not least, the increase in properties under contract points to a strong December to come for the Katy real estate market.

What’s it all mean in a nutshell

Buyers – With 2.3 months of inventory, Katy is a a solid Seller’s market. That means there are more Buyers than there are properties available. This increases the competition between Buyers and reduces their ability to negotiate lower prices. Sellers don’t have to lower prices if there are multiple Buyers fighting for the property. But don’t despair yet. Interest rates as low as high 2s and low 3s are in and of themselves equivalents of a price reduction.Think of it this way: Due to the lower interest rates you are now able to afford a more expensive home for the same payment or own the same home for much less than you used to even a year or two ago. So when the opportunity arises, seize it. Don’t overpay for the home you like but pay the fair market price it takes to get it and take advantage of once in a lifetime financing terms.

Sellers – The tide has turned in your favor. If you need to sell your home in Katy, this is a great time to make your move. There are plenty of Buyers taking advantage of low interest rates and not enough homes on the market to fill their demand. Homes are selling faster and for more money now than they were a year ago.  If you would like a complimentary evaluation of your home’s current value, contact us

For a printable copy of a visual market report for Katy real estate  in November follow the link below:

https://www.evernote.com/shard/s39/sh/04f3b4ba-6337-4fad-86c7-0d8f8deb525c/3435e8344b5d2203aa214f7705865df9

Nathan E Photography via Compfight

1. Sales up 35%, dollar volume up 47% compared to last October.
2. Average sales price up about 8.3% to $223,366
3. Inventory down 33% to 4.4 months – the lowest level in 11 years
4. Homes under contract (pending sales) up 25% compared to last year

The Analysis

1. Sales have been increasing for almost a year and a half now but what’s striking about October’s numbers is the magnitude of the increase. A thirty five percent jump in sales during a month where the market should settle down after the summer rush makes a bold statement about the strength of Houston’s real estate market. Moreover, the even higher increase in dollar volume points to higher priced homes as the fuel for this increase.
2. But as welcome as an increase in sales may be, you don’t get the full story until you look at average sales prices. For example, failing stores can have very high sales while slashing prices on a going out of business sale. During October, average prices rose by over 8%. That fact emphasizes the point made previously that the higher priced homes are performing very well. But most importantly it confirms the real strength of a market that recorded 1/3 more sales while prices rose
3. The inventory number is probably the most consequential of them all. 4.4 months of inventory points to a very tight supply of homes available for sale. This bodes well for folks looking to sell as the tighter supply of homes leads to still higher prices. This is a bona fide Seller’s market.
4. Higher pending sales point to a strong performance to come in November. In other words, this isn’t a flash in a pan but rather a solidified market trend.

So, what’s causing this strong market? Two factors: Job growth and low interest rates. According to the Workforce Commission, the Texas economy has created almost 100,000 new jobs in 2012. And interest rates are at ridiculous levels: This month, 15 year mortgage rate have been hovering around 2.75%. It doesn’t get much better than that.

Conclusions

When I provide advice to my clients, I think about what I would do if I were in their shoes.

If I were a Buyer in this current market, I would get all my financing ducks in a row through a preapproval with a reputable Lender, figure out the characteristics of the property I’m after (location, price, amenities, size etc) then make a strong offer when a prospective property meets that criteria. Gone are the days of the drawn out negotiations with desperate Sellers that had to work with the limited market demand. These days Sellers are seeing multiple offers near or at full asking price for well priced, well presented homes. Think about it this way: that 3% interest rate you can get today on your mortgage will make up that $5,000 discount you are seeking many times over the life of the loan. So, buy the house you want.

If instead I were on the selling side of the fence, I might not wait until the spring season to put my home on the market. With inventories and interest rates so low and buyer demand so high, things couldn’t really get much better a few months from now.

Tony Hammond via Compfight

• Price: $1550
• Square Footage: 2000
• Bedrooms: 3
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1550
• Granite Countertops
• Stainless Steel Appliances
• Refrigerator, Washer Dryer included
• Lake with trails
• Community Playgrounds
• Katy ISD Schools
• Under warranty
• Low utility bills
• Move in ready

Property Description

Immaculate brand new home zoned to Katy ISD schools available for immediate move . 3 bedrooms and stunning curb appeal w/ brick and stone exterior and a wonderful open floor plan with 14ft high ceilings. Energy star w/ top energy efficient features like Techshield radiant barrier, Low E windows, 14 Seer Carrier A/C unit and great insulation to minimize your utility bills. Large kitchen with rich 42 inch cabinetry, granite counters & stainless appliances. Fully Sprinklered. Must see to believe!

Mason Lakes is a quiet neighborhood located  four miles from I-10  near Mason Rd and Clay. It features a great community lake and playgrounds.

Lease Terms

Looking for a good long term tenant with great rental history, good stable employment (2+ years) and income (Approx. $4700/month income to qualify salaried, not on commission) and no background check issues. Minimum two year lease. Credit score of at least 600 is required with rare exceptions. Application fee is $25/adult in the home. Apps processed within 24-48 hrs.

Photos

• Lease Price: $1,500
• Square Footage: 1960
• Bedrooms: 3
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1500
• Great Location
• 1.9 Miles from I-10
• Sprinkler System
• Gourmet Kitchen
• On Private Cul De Sac
• Katy ISD Schools
• Community Pool
• Community Playgrounds
• Low utility bills
• Move in ready

Property Description

Immaculate 2011 built home on an oversized cul-de-sac zoned to Katy ISD schools available for immediate move in. Three bedrooms and stunning curb appeal with a wonderful open floor plan with cathedral ceilings. Energy star with some of the top energy efficient features like Techshield radiant barrier, Low E windows, 14 SEER Trane A/C unit and great insulation to minimize your utility bills. Breathtaking island kitchen with dark 42 inch cabinetry, granite counters & black appliances. Huge covered patio.

Morton Ranch is a lovely neighborhood  in close proximity to I-10 off the Mason Rd Exit.

Lease Terms

Looking for a good long term tenant (2 Year Lease is Best) with great rental history, good stable employment (2+ years) and income (Approx. $4500/month income to qualify   salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit score needs to be above 600. Application fee is $25/adult in the home. Apps processed within 24-48 hrs.

Photos

• Price: $1395
• Square Footage: 1696
• Bedrooms: 3
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1395
• Great Location
• Close to I-45
• Walking Trails
• Large Kitchen
• Breakfast Bar
• Dickinson Schools
• Community Pool
• Community Playgrounds
• Low utility bills
• Move in ready

Property Description

Beautiful home for lease in sought-after Bay Colony – great location close to I-45. Great Dickinson ISD Schools in close proximity and easily accessible shopping and groceries. Available for immediate move in. Wonderful open floor plan accentuated by high ceilings. Huge open living room, large kitchen with breakfast bar and nook, formal dining room, spacious master bedroom suite. Faux wood floors in the living and dining and easy to maintain vinyl in the kitchen and baths. Good sized backyard.

Bay Colony is a lovely neighborhood  in close proximity to Highway 45, 646 and 517

Lease Terms

Looking for a good long term tenant (2 Year Lease is Best) with great rental history, good stable employment (2+ years) and income (Approx. $4200/month income to qualify   salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary  a candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home. Apps processed within 24-48 hrs.

Photos

• Price: $2250
• Square Footage: 3722
• Bedrooms: 5
• Bathrooms: 3.5
• Garage: 2 car
• Deposit: $2250
• One Owner Home
• Lake Community
• Walking Trails
• Large Island Kitchen
• Huge Gameroom
• Master Down
• Fort Bend Schools
• Community Pool
• Community Playgrounds
• Low utility bills
• Move in ready

Property Description

Stunning One-Owner Perry Home in beautiful Brightwater freshly painted and ready for immediate occupancy. Fantastic floor plan with formals on opposite sides of a two story foyer, large family room with gas fireplace, huge island kitchen with custom cabinetryand lovely master bedroom on the first floor. Upstairs, there’s a huge gameroom, a bright study overlooking the foyer and four large bedrooms connected by Hollywood baths. Energy efficient features installed: Radiant barrier and insulation..

Brightwater is a lovely neighborhood with wonderful lakes and walking trails in close proximity to Highway 59, US 90 and Sugar Land.

Lease Terms

Looking for a good long term tenant with great rental history, good stable employment (2+ years) and income (Approx. $6750/month income to qualify – salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary. A candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home. Apps processed within 24-48 hrs.

Photos

• Price: $1425
• Square Footage: 1857
• Bedrooms: 4
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1425
• Granite Countertops
• Black Premium Appliances
• Refrigerator included
• Washer Dryer included
• Community Pool
• Community Playgrounds
• Katy ISD Schools
• Under warranty
• Low utility bills
• Move in ready

Property Description

Immaculate brand new home for lease zoned to great Katy ISD schools available for move in on April 1. This gorgeous four bedroom home has stunning curb appeal in its brick and stone exterior and features a wonderful open floor plan with high ceilings and lots of natural light. This energy star home features some of the top energy efficient features like Techshield radiant barrier, Low E windows, 14 Seer Carried A/C unit and great insulation to minimize your utility bills. Easy to maintain ceramic tile in the foyer, living room, kitchen and baths. Perfect for entertaining island kitchen with dark 42 inch cabinetry, premium granite countertops and black appliances overlooking the living room. The large master suite features premium berber carpeting, high ceilings and great closet space. Separate tub and shower and double vanities in the master bath. Oversized covered patio in the fully sodded large backyard. Home comes with builder’s warranty for the entire first year. All appliances are provided including refrigerator, washer and dryer. Competitively priced and ready for a great tenant on April 1.

Morton Ranch is a quiet neighborhood located two miles from I-10 off Mason Rd. It features a great community pool and playgrounds.

Lease Terms

Looking for a good long term tenant with great rental history, good stable employment (2+ years) and income (Approx. $4000/month income to qualify – salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary – a candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home.

Photos

• Price: $1325 
• Square Footage: 1675
• Bedrooms: 3
• Bathrooms: 2
• Garage: 2 car
• Deposit: $1325
• Granite Countertops
• Stainless Steel Appliances
• Refrigerator included
• Washer Dryer included
• Community Pool
• Community Playgrounds
• Katy ISD Schools
• Under warranty
• Low utility bills
• Move in ready

 Property Description

How would you like to live in an immaculate home zoned to esteemed Katy ISD, in close proximity to schools and good access to I-10? This home is brand new – never lived in and will carry full builder warranties through the lease term. It already comes equipped with premium stainless steel appliances, a refrigerator and washer and dryer. The Emerson floor plan is functional and makes maximum use of the space. Upon entrance, you will find the tiled foyer and to your right, there’s a spacious office with french doors. Up ahead is the wonderful kitchen with beautiful birch cabinetry, granite countertops, plenty of counter space and cabinet space. The bright and cozy breakfast/dining nook complements the kitchen area well. The family room features a gas fireplace and has access to the back yard and the covered patio. The master bedroom features vaulted ceilings, massive closet space and a master bath complete with separate tub and shower, double vanities and ceramic tile. The two additional bedrooms are in a separate hallway and they are both good size. The laundry room is off that same hallway on the way to the garage and it comes equipped with a new washer and dryer.

The home is energy efficient with Techshield radiant barrier so you can have lower utility bills.

The Morton Ranch neighborhood is quaint and quiet just a couple of miles north of I-10 on Mason. It has a great community pool and play areas. You will love it here!

Lease Terms

Looking for a good long term tenant with great rental history, good stable employment (2+ years) and income (Approx. $4000/month income to qualify – salaried, not on commission) and no background check issues. Minimum one year lease but prefer two years. Credit scores and credit issues are secondary – a candidate that fulfills all the other requirements but has credit issues will likely be approved. Application fee is $25/adult in the home.

Property Photos

What’s the next step? Download the blank lease application complete it and email it back to us along with copies of  last two check stubs and copy of driver’s license.

Photo Credit: Kevin Dooley via Compfight

Houston Real Estate market stats

I want to make this very simple for you by briefly summarizing the main points. Real estate sales were up by double digits over the same period in 2011: All property sales were up 15.8% while just single family homes were up 16.9%. Inventory is down to 5.6 months: The lowest levels since right after the peak of the recession in December 2008 and down 22% compared to last year. Pending sales are up 13.5% compared to last year as an indication that the increased activity is likely to continue in the following months. Average sales price fell 4.6% as foreclosures made up a larger portion of sales: 21% increase compared to last year. Full report on HAR’s website.

Bank foreclosures and the upcoming market

Banks foreclosed on millions of homes across the country during the recession and at some point they would have to resell them to recuperate a portion of their investment. But bringing all the foreclosure inventory owned by banks on the market at once would wreak havoc on the real estate market and drop values even further. In addition since the demand for properties was barely keeping up with the inventory already in the market, dumping this massive number of homes on the market wouldn’t make sense at all. So, banks have been doing a controlled release of these properties on the market while being careful about preserving a ratio of foreclosure sales to total sales between 15-20%. This has brought about the much talked about “shadow inventory” talk that many people say can be the next shoe to drop for the housing market.

The increasing number of sales in real estate markets across the country demonstrates an increase in demand for properties. Banks are taking notice of their properties commanding multiple offers and selling above asking price so they’re releasing more properties. In February, foreclosure sales made up 23% of total sales – a figure that’s higher than the 15-19% norm of the past couple of years. This is reflected in the decrease of average sales price seen in February. Remember the median sales price for all properties in Houston is $150,000 whereas the median sales price of bank foreclosures is $79,000.

So what remains to be seen in what the banks will do as the market seasonally heats up for spring and summer. Will they bring even more properties to market to take advantage of a liquidation opportunity or will they be cautious and try to preserve a balance in the market?

What February numbers mean for Houston Sellers

If you are considering to sell your property in 2012, the environment is much friendlier this year than in years past. More buyers and shrinking inventories are a good combination and they increase the probability that your home will sell faster. But a note of caution: The majority of home buyers are still in “looking for a deal” mode so properties that are priced competitively, marketed aggressively and ready for showtime will prevail. And now they have choices: Many banks are now remodeling their foreclosures to make them more competitive with regular listings. Last, remember that there are two main driving forces behind home sales: 1) the strength of the economy (or people’s perception of it i.e. consumer confidence) and 2) low interest rates. The second factor is crucial for affordability and it comes with a time limit. The more the recovery strengthens, the higher the prospects for higher inflation, the higher the probability that interest rates may have to rise. So this may be a good opportunity for you to make your move.

Schedule a complimentary consultation with Erion

What February numbers mean for Houston Buyers

Getting a deal on a foreclosed property will be more difficult in 2012 for Buyers that approach the process unprepared. Read: What to expect when buying a Houston foreclosure before you start. It will save you a lot of headache and aggravation and will increase your chances of being the winner. Slimmer inventories and increasing buyer demand will mean there are fewer eligible properties per eligible buyer so you may need to act quickly when the opportunity presents itself. All that being said, 5.6 months of inventory is still a balanced market and therefore full of opportunities. So, get your pre-approval in order (if you need help finding a great lender, send me an email) and let’s meet to talk about your needs, wants and would-be-cools. Or just:

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