Market stats for November 2011 were released by the Houston Association of Realtors on Tuesday. The table below covers the main eight figures that HAR tracks to gauge overall market conditions:
Houston real estate market statistics for November 2011
Although useful, these figures by themselves don’t provide much insight until they’re coupled with some historical perspective and context. That’s why I went back 10 years to November 2001 and tracked each of these figures to offer you a clearer picture of where the Houston real estate market stands relative to other years – recession or boom.
Property Sales
Along with sold prices, the number of properties sold in a particular period of time is a fundamental indicator of market health. Take a look for yourself:
Property Sales in Houston November 2001-2011
When you take away the outlier that is November 2009, when the government shot steroids into the housing market via the tax credit, you can see that property sales in November are on an upward trend since the 2008 bottom when the recession hit. We are definitely lower than the top of the market numbers in 2004-2007 but higher than similar months at the beginning of the decade (2001-2003). Sales numbers in November are therefore encouraging.
Median Sales Price
The median sales price of $154,950 is the highest among properties sold in the month of November in the past decade. Chart speaks for itself:
Median Sales Price November 2001-2011
You can see definite trends: sideways through 2001-2004, upward in 2005-2007, the dip of 2008 and upward tick in the last couple of years. This chart is by and large good news – our market is on a positive trend in November.
Months of Inventory
Last but not least, months of inventory is a statistic that indicates literally how many months it would take to clear out the existing inventory of Houston homes for sale at the current rate of sales. Typically 5 months or under is considered a Seller’s market (more buyers than sellers, sellers in driver’s seat), 6 months depicts a neutral, balanced market, and 7 or higher is a buyer’s market.
Months of Inventory November 04-11
HAR data only went back as far as 2004 on this. We’re currently at 6.2 months of inventory which points to a balanced market between supply and demand. This years figure is a great improvement over last year and it’s in line with number is 2007-2009.
Takeaways
Remember that these are aggregated numbers – that is they provide a macro view of the Houston Real Estate market as a whole during the month of November. That means that if you wanted to know how the market is doing in your neighborhood, you still need to look at the micro view of sales, prices and inventory in that specific neighborhood. If you are thinking about selling your home or just would like a complimentary home value evaluation, you can request one here and I’ll be happy to help.
In the meantime, enjoy your holidays. I’ll be covering December’s figures in about four weeks.
