Hurricane Ike sidelined Houston's real estate business for several weeks after tearing through the region in September 2008, so it comes as no surprise that property sales one year later surged into positive territory.

According to the latest monthly data compiled by the Houston Association of Realtors (HAR), September volume of single-family home sales across the greater Houston area rose 32.0 percent compared to September 2008. Total property sales climbed 30.4 percent in September on a year-over-year basis. The increases come on the heels of gradual improvements to the local housing market resulting from an influx of first-time home buyers who have taken advantage of the federal government's $8,000 tax credit that expires at midnight on November 30.

At $156,200, the September single-family home median price—the figure at which half of the homes sold for more and half sold for less—edged up 0.2 percent from one year earlier, representing the fifth straight monthly increase in median price. The average price of a single-family home in Houston dipped 1.6 percent last month to $205,925 compared to September 2008.

Foreclosure property sales continued to slow in September, making up 18.6 percent of all single-family home sales in the Houston area compared to 19.3 percent in September 2008 and the 12-month peak of 34.0 percent in January of this year. The median price of September foreclosure sales reported in the Multiple Listing Service (MLS) declined 1.0 percent from $88,950 to $88,000 on a year-over-year basis.

Sales of all property types in Houston for August totaled 5,654, up 30.4 percent compared to September 2008. Total dollar volume for properties sold during the month was $1.1 billion versus $877 million one year earlier, representing an increase of 25.7 percent.

"It is wonderful to see such a positive monthly report for the Houston real estate market, but stacking these numbers up against a month in which Hurricane Ike devastated the local real estate industry and many other businesses is a bit unfair," said Vicki Fullerton, HAR chair. "Nonetheless, we had recently begun to see indicators suggesting that we are working our way out of the market downturn and we expect to see continued improvement."

Source: Houston Association of Realtors

While Texas has experienced increased unemployment along with the rest of a nation in the middle of a recession, job loss in the lone star state has occurred on a smaller scale than in other parts of the country.

According to a report released late October by the Real Estate Center at Texas A&M University, the Texas economy lost 295,400 nonfarm jobs from August 2008 to August 2009, an annual job loss of 2.8 percent.

Over the same period, the US economy lost close to 6 million jobs or 4.4 percent of its total nonfarm jobs.

Texas' seasonally adjusted unemployment rate rose from 5 percent in August 2008 to 8 percent in August 2009, while the US rate rose from 6.2 percent to 9.7 percent during the same period.

Only one Texas metro area, McAllen-Edinburg-Mission, experienced a positive employment growth rate from August 2008 to August 2009. Twenty-four metro areas experienced net job losses. Among them were: Austin-Round Rock, –0.9 percent; Dallas-Plano-Irving, –2.5 percent; Fort Worth-Arlington, –1.4 percent; Houston-Sugar Land-Baytown, –3.6 percent; San Antonio, –0.8 percent.

The state's actual unemployment rate in August 2009 was 8.1 percent. Amarillo had the lowest unemployment rate followed by Lubbock, Abilene, Midland, and College Station-Bryan.

Source: Real Estate Center at Texas A&M University

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The U.S. Senate won't vote until next week at the earliest on proposals to extend both an $8,000 tax credit for first-time homebuyers and unemployment benefits for the nation's jobless.

Lawmakers announced plans earlier this week to attach the tax-credit proposal to a pending bill on the unemployment benefits. The $8,000 tax credit, enacted earlier this year as part of the $787 billion economic stimulus package, is set to expire at the end of November.

The lawmakers want to extend it until April 30. Their proposal would also expand it to allow higher-income Americans and some who already own homes to qualify for the break.

Homebuyers who have lived in their prior residences for at least five years may receive a $6,500 credit under the plan, said Senate Finance Committee Chairman Max Baucus. Also, couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extended break, Baucus said. That's up from a $75,000 limit for individuals and $150,000 for couples.

"The success of the American economy is closely tied to the success of the housing market; by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover," said Baucus, a Montana Democrat. "This would enable an even greater number of potential homebuyers to take the credit."

Lawmakers said they want to prevent home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression.

More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department. The Obama administration endorsed plans to extend the credit today, saying it helped stabilize the nation's housing market.

The tax break "brought new families into the housing market and contributed to three consecutive months of rising home prices," Treasury Secretary Timothy Geithner said in a statement.

The measure would require those receiving the tax break to remain in their new homes for three years and they would have to repay the credit if they don't.

Those buying homes worth more than $800,000 wouldn't be eligible for the credit, said Baucus. Lawmakers also said they won't extend the break beyond the new April 30 deadline.

"The American people should understand this -- and the affected industries -- this is the last extension," said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. "Tax credits like this only work by creating the sense of urgency to take advantage of them."
Isakson estimated the new plan would cost $10.2 billion. Senate Banking Committee Chairman Christopher Dodd said the plan wouldn't add to the government's budget deficit because lawmakers plan to finance it by delaying a tax break for multinational companies scheduled to take effect next year.

The bill that would include the tax-credit plan calls for extending unemployment benefits by 14 weeks in all states, and by an additional six weeks in states with the highest jobless rates. That bill has been stalled for weeks because of an ongoing dispute between Reid and McConnell over amendments to the measure.

Source: Bloomberg.com

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The appraised value of a property is a professional estimate of a property's market value. It's based on the recent sales of similar properties, square footage, location, construction quality, and more. An appraisal varies in cost depending on the price and size of the home. Most lenders require appraisals as part of the loan application process.

But don't confuse the appraisal with market value. The appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. And it should give you a pretty good idea what your home will sell for. Ultimately, though, your home's market value is the price a buyer is willing to pay for it. Having your home professionally appraised before putting it on the market will help you and your Texas Realtor determine a fair asking price. There are other methods of determining the value of your home, including a comparative market analysis (CMA). A CMA compiles information and sales prices from homes similar to yours from your neighborhood that have sold recently. Many Realtors perform CMAs for clients and potential buyers.

Whether you rely on a CMA, an appraisal, or both, you will be able to price your home according to objective measures rather than a gut feeling or a number plucked from the air.

Source: Texas Association of Realtors

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