Home sales statistics are likely to paint a picture of a weakening market through the end of 2010 and the first half of 2011. While it's tempting to attribute the bleak numbers to a deteriorating housing market, an economist with the Real Estate Center at Texas A&M University said that doesn't tell the whole story.

"The year-over-year decline in existing home sales will be the result of comparing months when there was no tax credit with those from a year earlier, when the tax credit was artificially increasing sales," said Dr. Mark Dotzour, the Center's chief economist.

The $8,000 tax credit for first-time homebuyers went into effect in January 2009 and was planned to expire in November 2009. Home sales gradually started to increase after the tax credit was announced, after bottoming out in January at an annual rate just above 4.5 million sales.

Existing home sales gradually increased in 2009 as buyers and real estate agents became more familiar with the program. Sales topped an annual rate of five million in July 2009 for the first time since September 2008.

As the tax credit deadline approached, home sales spiked in September, October and November 2009. November 2009 was the peak at an annual rate of almost 6.5 million.

The tax credit was extended late in 2009 to include sales with contracts written until April 30, 2010, and closed by June 30 (extended to September 30). Initial homebuyer response to this extension was tepid, but sales picked up substantially in March, April and May 2010, when sales were up 18 percent, 28 percent and 18 percent, respectively, over the same months in 2009.

Then the process reversed itself. Pending home sales fell dramatically in May 2010, the month after the tax credits expired. This was followed by a significant drop in home sales in June and July. In Texas, July 2010 sales were down approximately 25 percent from July 2009.

Dotzour said August figures may not be much better since many buyers purchased homes before the tax incentive expired.

"When you 'bring forward' sales through tax incentives, sales will be lower after the tax credit ends," he said.

Unless Congress creates a new tax credit this fall, Dotzour said monthly sales for 2010 will likely exhibit significant variance from 2009, and a true reading of housing market conditions may not be possible until June or July 2011.

Texas' economic recovery is strengthening, according to the latest monthly economic review from the Real Estate Center at Texas A&M University.

After 16 months of job losses, the state had its third month of positive annual employment growth.

Texas' employment growth rate from July 2009 to July 2010 was 1.3 percent compared with a rate close to zero percent for the nation.

The state's private sector posted a positive annual employment growth rate of 1.2 percent compared with a zero percent rate for the United States.

The seasonally adjusted unemployment rate in Texas rose from 7.9 percent in July 2009 to 8.2 percent in July 2010, while the U.S. rate increased from 9.4 to 9.5 percent over the same period.

All Texas industries except the construction and information industries had more jobs in July 2010 than in July 2009.

Nineteen Texas metro areas had positive employment growth rates from July 2009 to July 2010, up from 16 for the period from June 2009 to June 2010. San Angelo ranked first in job creation, followed by College Station-Bryan, Austin-Round Rock-San Marcos and McAllen-Edinburg-Mission.

The state's actual unemployment rate in July 2010 was 8.5 percent. Midland had the lowest unemployment rate followed by Amarillo, San Angelo, and College Station-Bryan.

Source: Real Estate Center At Texas A&M University

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An anticipated property sales slowdown set into the Houston real estate market in July following the expiration of the federal homebuyer tax credit. The credit had propelled local home sales for four straight months beginning in March, however home sales suffered a double-digit decline in July. Despite the drop, the average price of a single-family home still managed to climb to a two-year high.

According to the monthly data released late August by the Houston Association of Realtors (HAR), July sales of single-family homes throughout the Houston market fell 25.1 percent compared to July 2009. Sales volume faltered in all single-family home pricing segments except among properties under $80,000, which were flat. Sales of all property types combined slid 24.4 percent in July on a year-over-year basis.

The average price of a single-family home rose 2.7 percent from July 2009 to $224,764, the highest price since June 2008. The July single-family home median price—the figure at which half of the homes sold for more and half sold for less—dipped 0.7 percent from one year earlier to $160,880, but still recorded its highest level since July 2009.

Foreclosure property sales reported in the Multiple Listing Service (MLS) tumbled 13.5 percent in July compared to one year earlier. The median price of July foreclosure sales declined 6.1 percent to $84,000 on a year-over-year basis.

Sales of all property types in Houston for July totaled 5,056, down 24.4 percent compared to July 2009. Total dollar volume for properties sold during the month was $1.0 billion versus $1.4 billion one year earlier, representing a 23.9 percent drop.

"Homebuying came earlier and at a heftier pace than we would normally have seen in Houston during the spring and summer months because of the tax credit, but indicators showed that sales would decline once the credit expired, so this comes as no surprise," said Margie Dorrance, HAR chair. "It is encouraging that pricing has remained strong and that on a year-to-date basis home sales are actually slightly ahead of 2009 levels."

Source: Houston Association of Realtors

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To select the right color for each room of your listing, design experts recommend applying the following strategies.

1. Coordinate with the room's use. Certain colors lend themselves to certain activities. For example, studies show that kitchen and dining areas painted in "food colors" — such as celery green or red — increase appetite, whereas blue acts as an appetite suppressant. On the other hand, the tranquility evoked by blue makes it ideal for bedrooms, Fisher says.

2. Paint for the season. Color directly impacts your senses, making a room's temperature feel cooler or warmer. For example, bring in warm colors — such as reds, oranges, and yellows — in the fall and winter months, and cooler colors — greens, blues, and purples — during the spring and summer.

To save yourself some hassle, paint just one accent wall in a room, or bring out the season-appropriate colors using accessories such as throw pillows or a vase of flowers.

3. Use a directional approach. The effect of color on perceived temperature also means that the direction a room faces should influence color choices. North-facing rooms may not feel as warm and inviting to buyers because they don't get as much sunlight, an impression that can be lessened by painting them a warm color. "If you have a very warm room that is facing south, and you want to cool it or calm it down, use cooler hues of blue or green," Zimmer suggests.

4. Harmonize. You can also use color to provide a sense of order and balance in a home. Using variations of the same color throughout a house, rather than painting every room a different, contrasting color, provides a sense of flow from one room to another and doesn't distract buyers' eyes.

"Color is always a very personal choice," Zimmer adds. "So color choices can be subtle. A color doesn't have to be McDonald's yellow or Red Roof Inn red to be noticed. It can be a derivative or a subtle tint or tone of those particular colors to create the warming effect buyers want in a home."

Source: Realtor.org

1. Have a pre-sale home inspection.

Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you'll be able to make repairs before open houses begin. On the other hand, if your inspection returns little to no items in need of repair, you can provide a copy to potential buyers and help nudge them past the typical buyer's worries and into the offer stage.

2. Organize and clean.

Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates.

Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don't plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties.

Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal.

Pretend you're a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

While you're working on these five steps, contact your Realtor to get an understanding of local market conditions and a realistic idea of the market value of your home. Your Realtor may have specific advice on ways to add value before you get ready to list.

Source: Realtor.org

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