SE Texas Real Estate Talk

Holiday's and Home Buying Don't Always Mix

November is the start of the holiday shopping season.  While the retailers are announcing increases in sales and the stock market is up, home sales didn't show much improvement for the month of November. 

Take a look at the numbers:

This time last year there were 150 closings.  People may be out buying for the holidays but at the present time it doesn't seem like they are buying homes. 

Fannie Mae Shows Some Christmas Spirit

Fannie Mae Halts Foreclosures for the Holidays.

Survey Reveals Why Buyers Are Waiting on Sidelines

Survey Reveals Why Buyers Are Waiting on Sidelines.

Southeast Texas Residential Home Sales Statistics for Oct. 2011

143 homes sold in Southeast Texas during the month of October, according to data from the Beaumont MLS.  The majority of these homes were financed by FHA mortgages (53), followed by conventional mortgages (46), cash (25), and VA (15). 

Take a look!

Noteworthy highlights:

• The average number of days on the market for the whole market is 147 which is just about five months. 
• The four areas that exceeded the average days on the market were:  Kountze, Vidor, Beaumont W5 and W6.
• The median price of all homes that sold was $135,000.
• The four areas that had a lower median price were:  Beaumont W3, Beaumont W5, Mauriceville, and Bridge City.

Sales from previous October's:

• 2010 = 150 sales
• 2009 = 165
• 2008 = 178
• 2007 = 185
• 2006 = 183
• 2005 = 86*

Not since 2005 have there been fewer home sales in the month of October.  If you were here in Southeast Texas in October 0f 2005 you can probably guess why home sales were so slow that month. 

The takeaway:

Home sales in Southeast Texas continue to lag behind the pace of previous years.  The number of days on the market it takes to sell a home is longer than before.  If you plan to sell your home in this market its more important than ever to know the data and understand the competition.  That's where an experienced REALTOR who is a local market expert can really help.  When you are ready to sell your Southeast Texas home contact me, let me show you how to make sure your home is one of the homes that sells.

 

65% of Your Neighbors are Homeowners

Homeownership Rate Second-Highest on Record.

Home Sales in SE Texas 2010 vs 2011

As we start the fourth and final quarter of 2011, let's see  how home sales this year compare to home sales last year.  Raise your hand if you think sales are up.  Now, take a look at the chart.

If your hand is down then you are right about home sales.  So far through the third quarter the total number of residential sales is lower than it was in 2010.  

"There have been approximately 10% fewer homes sold this year compared to the same time last year."

In fact only two months -January and September- of 2011 had a higher number of home sales than 2010.  According to the data the The Real Estate Center at Texas A&M gathers from the Beaumont MLS, there is currently a 12.3 month supply of inventory on the market. 

The number of homes for sale in Southeast Texas - also know as the amount of inventory- has been above 8 months since April 2009.  Its been in double digits since Feb. 2010.  Most experts would agree a 6-8 month supply of homes on the market is a fair and balanced market.  More than that tips the scale to the side of buyers.  Less than that tips the scale to the side of sellers. 

Interestingly enough the median sales price has not gone down even though inventory is up. 

• September 2010 Median Sales Price = $121,000
• September 2011 Median Sales Price = $123,800

What is the take away from all of this?  To put it in plain words, the market is complicated right now.  Fewer homes are selling but the pristine ones still are selling and selling at close to asking price. 

• For buyers:  Don't assume every seller will come down 10% off their asking price.  There's more to it that than.  You need to know how well the home is priced to begin with. 
• For sellers:  Plan to get your home in great shape before it goes on the market.  Coldwell Banker Southern Homes has a free home enhancement guide that will help you maximize your sales price and shorten your time on the market.

If you have more questions about the Southeast Texas residential housing market contact me.  Having a professional, local REALTOR on your side is one of the smartest decisions you will make when it comes to buying or selling a home.

 

Southeast Texas Single Family Home Sales Slow in September

It is a common occurrence.  Home sales slow in September.  This year is no different, except they slowed more than they have the past several years.

The chart below shows the top five areas for single family home sales in Southeast Texas for the month of September. 

Here's a few September's gone by:

• 2010 = 124 home sales
• 2009 = 146 home sales
• 2006 = 228 home sales

See that!  That's a 50% reduction in the number of homes that sold in September 2006 to September 2011.  If you read much about real estate then you are aware 2006 is considered the peak of the market.  I wonder if we will look back in a few years and call 2011 the bottom of the real estate market. 

One other thing to take note of is that the average days a home spends on the market in Southeast Texas is 121.  If you are thinking about selling your home you will want to keep that in mind.  4 months is the average. 

If you want to know more about the Southeast Texas real estate market or single family home sales in Beaumont, Texas contact me.  Its easy.  Call, text, or click the link on the blog.  If I don't know the answer to your real estate question I will do my best to find out. 

August Home Sales Up Across Texas, Down in Beaumont

The Real Estate Center at Texas A&M tracks home sales across the state of Texas.  Here's a graph they just released that shows sales activity by market area.

 

Sales of single family homes were up 24% according to the data from the Real Estate Center.  Good news for Texas.  Not so good news for Beaumont. 

Three markets across Texas that had fewer sales in August 2011 than they did in August 2010 were:

1. Beaumont - down 8%
2. Port Arthur - down 5%
3. South Padre Island - down 7%

Beaumont also has one of the highest months supply of inventory which is also another sign that the sales are not what they should be.  One interesting note, the median price is 6% from the same time last year. 

What's it going to take to get the Southeast Texas housing market back on track?  Share your thoughts here on the blog.  Let us know what you think.

Buying a home a safer bet than buying gold (INFOGRAPHIC)

Buying a home a safer bet than buying gold (INFOGRAPHIC).

Take a look at this article.  The majority of people still say buying a home is the best way to build wealth and save for retirement.  Second place?  Investing in your 401K.

Home Inventories Shrink, but not in SE Texas

For-sale inventories shrink for fourth month in a row.

Interesting article by Inman News.  Click link to read full story.  Good news for the national housing market as inventories of unsold homes are shrinking. 

Here is Southeast Texas we aren't seeing that trend- yet.  We started the year with 1677 residential properties for sale.  Currently there are 1822 residential properties for sale. 

The high for the year was hit in June when there was a 12.6 month supply of unsold homes on the market.  At the end of July there was a 12.4 month supply. 

A balanced market would have about a 6 month supply of homes for sale.  The Southeast Texas residential housing market still remains a buyers market.  There are more sellers than buyers. 

Its also worth noting that the Southeast Texas real estate market stayed healthy long after the national housing market was faltering.  It will be interesting to see how long it takes before we are seeing the number of homes for sale in Southeast Texas start to decline.  Shrinking inventories are a good sign that home prices will start to stabalize and the housing market will start to recover.