The market for Houston Condos have been very difficult for the last year, but signs of some improvement is showing in the Houston housing market. The market for single family homes in Houston Texas has declined from the high of 2007, but have seem to rebound from the worst of 2008.
Overall average home sales price of single family homes including condos have increase 1 percent in 2008 from 2007 although fewer homes are getting listed in the Multiple Listing Service indicating many have dropped of the market or are no longer for sale.
Many owners of Houston Condos are renting out the condos rather than listing them for sale. The rental market increased 25 percent in 2008 compare with prior year. This is indicating many have opted to rent the condominiums rather than try to sell.
The number of sale have declined from year earlier in the greater Houston area. The number of units sold in December 2008 fell by over 24 percent from December 2007. The number of units sold were 378 units in 2008 versus 498 units in 2007.
The average price of Houston Condos fell 3 percent year over year to about $167,000. The median price has declined to $125,000 from year prior. These prices have returned to early 2000’s figures, the price declines and sales have somewhat stabilized.
With the new tax credit of $7,500 by the federal government and all time low interest rates there should be some interest to new home buyers. The 30 year fixed mortgage rates have come down to around 5 percent, lowest it has been in many years. The rate for 15 year fixed mortgage rate is below 5 percent.
With these rates and incentives, the market should see some buyer’s returning. Although it is far from the seller’s market few years ago, new homeowners should see some value in purchasing one.
