Existing home sales in the Houston area remained in positive territory in June for the fourth consecutive month.
Despite the end of the federal tax credit, sales were up 2.9% in June, according to the Houston Association of Realtors. That's not nearly as strong as the three previous months. But sales took a nose-dive after the tax credit expired on May 31 in most other places.
Besides, it's not like the slow down, which followed increases of 11.3% in March, 27.8% in April and 18.2% in May, wasn't expected.
"The Houston real estate market has benefited all that it can from the homebuyer tax credit and now comes the return of sales trends that are more typical for this time of year," said Margie Dorrance, a principal at Keller Williams Realty Metropolitan and chair of the Houston realty association.
Sales were up in May in all single-family home pricing segments except the $150,000 to $250,000 category. The largest increase took place among homes priced from $500,000 and above. The average price of all sales edged up 0.9% to $222,767, the highest price since July 2008.
Foreclosure sales reported in the Multiple Listing Service rose 9.3% in June compared to one year earlier. The median price of June foreclosure sales increased 2.4 percent to $88,000 on a year-over-year basis.
June wasn't such a hot month either for the Texas new home market in general and Houston in particular, according to a survey by John Burns Real Estate Consulting. New home sales were down 37% for the month in the state, with Houston dominating the decline because of what Burns called "oil spill-related jitters."
Builders responding to the survey sited the economy as the main reason for poor sales. "We don't need tax credits. We need jobs," said Burns. "Working adults buy homes. The unemployed and those who fear unemployment do not."
