Houston home prices increase, reach record high during June

Houston's home sales and prices were up during June.According to recent data released by the Houston Association of Realtors, the region experienced a significant rise in home sales during June, the second time this year an increase took place.Overall, sales of single-family homes in Houston grew 0.6 percent from June 2010, reaching 5,571. The increase was the first higher monthly total recorded in the region since January. Total property sales totaled 6,520, which was slightly down, falling 0.2 percent during the same period. Total pending sales were up significantly though, growing 18.3 percent from June 2010 to 3,872. Furthermore, the total amount of spending during June reach $1.43 billion, up 3.3 percent from the same period.According to the HAR report, the increased sales activity is result of the gradual slowdown experienced after the tax credit was issued in early 2010. While the credit triggered a significant surge in housing demand, activity slowed and eventually dwindled following its deadline.”We see the effects of the 2010 tax credit in the June Houston real estate market report in the form of a drop-off in sales that took place a year ago once the credit expired,” said Carlos Bujosa, HAR chairman. “We expect these credit-skewed readings to taper soon, providing us with a more accurate gauge of market performance, but in the meantime, we are thrilled to see sustained home price appreciation.”Average and median prices both increased during the month as well. Single-family home prices averaged a record-high of $228,650, which was achieved by a 3.7 percent increase from June 2010. The median home price for Houston properties during June was $161,000, which represented a 2.2 percent increase from the same period. The median price is also the highest it has been since July 2009.The higher prices may be attributed to the reduced amount of foreclosure recorded during June. Overall, foreclosures represented 18.7 percent of all property sales, which was down from 19.8 percent during May, 22 percent in April and 23.5 percent in March. The median price of foreclosures fell to $81,000, down 7.5 percent from June 2010.Despite the region's gains, Houston's inventory increased to 7.9 months, jumping 8 percent from 7.3 months in June 2010.Courtesy of 2M Realty News

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