Houston Real Estate Sales Slide in March

Source: Houston Association of Realtors

According to a press release by the Houston Association of Realtors on Tuesday, home sales in the Houston Real Estate market continued their year-on-year slide for the seventh month in a row.

First, the raw data:

The total number of sales and (as a result) the total dollar volume went down by approximately 17% compared to last year. The number of active listings on the market and the months of inventory went up 9% and 14.5% respectively. The number of pending sales went down by 19%. On the other hand the average sales price went up by 2% while the median sales price stayed unchanged at $151,000.

I happen to believe that the numbers never lie. Sometimes there are stories that may run undercurrent and that might not be immediately obvious, but they are there. The total March home sales in Houston are lower than what they were last year, but the average sales price increased slightly.  This is a completely reversed picture from the latest national numbers: Total sales went up, but average sales price went down. So what's the story here?

In my view, the Houston Real Estate market is currently being affected by restricted lending guidelines that are causing the "pool" of available buyers to shrink. This factor combined with the seller's unwillingness to budge off their asking price (see average sales price and median sales price) is keeping deals from happening. This is demonstrated by the lower number of pending sales while active listings on the market are up. As a seller, what are the lessons in these numbers?

• Price your home to sell (aggressively) -- Tactics of putting the home on the market for a higher price to see what happens can ensure that your property stays on the market for a long time. Make sure that you give the available buyers a good value by pricing your home attractively.
• Contribute to closing costs -- Buyers are leaning closer and closer towards FHA loans so to help your home sell you have to be open to contribute to the buyer's closing costs. Typically, 3% is the norm but closing costs can run as high as 6% especially if the buyer does not have money for a down payment. Keep your eyes on the prize and focus on the figure that you stand to net (Price - Closing Costs Contribution)
• Maintain your home in top shape -- With fewer available buyers, come fewer available showings so you have to make every one of them count. Keep your home in showing condition and give it a selling chance.
• Listen to the market -- The market has a very curious way of telling you when your home is overpriced: There are no showings! If the home is being properly marketed and it is not showing, chances are it is overpriced. (No your Realtor is not trying to talk you into giving it away.)
• Put numbers into perspective -- If you think these numbers are bad, look at the ones from California and Arizona and you will feel much better. We are feeling the downturn here but at a much lower scale than elsewhere where average months of inventory can be double our figure.
• Demand feedback -- Feedback is the conversation between the buyer and seller so don't cover your ears when you hear something you don't like. If it is something you can help, by any means, do it. That may be the turning point for the next buyer.
• Hire a fighter -- This is no time for "stick-the-sign-in-the-yard" real estate agents. Make sure you hire a Houston agent that will fight to get your home sold through an aggressive marketing campaign.

Comments

[Grimesland NC Real Estate]

Tactics of putting the home on the market for a higher price to see what happens can ensure that your property stays on the market for a long time. Make sure that you give the available buyers a good value by pricing your home attractively.

[Grimesland NC Real Estate]

In my view, the Houston Real Estate market is currently being affected by restricted lending guidelines that are causing the "pool" of available buyers to shrink. This factor combined with the seller's unwillingness to budge off their asking price is keeping deals from happening. This is demonstrated by the lower number of pending sales while active listings on the market are up.