Sales of residential properties, including repossessed homes, dropped in most areas of Texas in 2010 compared with 2009 levels. According to the Texas Association of Realtors®, the decline in sales showed that the region is not insulated from the national economic downturn that affected most of the U.S. housing markets in 2010.
The number of houses, including Austin bank owned properties, that were sold in the whole state last year totaled 202,916, representing a 5% decline when compared with 2009 figures. The good news is that the median price of housing units sold last year improved by 1% when compared with 2009 median prices. Median rate for houses sold in 2010 was pegged at $147,600.
According to Realtors®, although the increase is only one percent, it shows that the region is doing much better than other U.S. markets despite the oversupply of bank owned homes in Texas. They stated that even a flat year-over-year median price would have been positive, given the condition of the country’s residential real estate industry.
For October-December 2010, the same trend was evident, with sales of non-foreclosed and repossessed homes declining from year-ago levels and prices rising over the same period. A total of 43,605 residential properties were sold in the state during October-December 2010, 18.9% lower than the sales total recorded in the 2009 fourth quarter. However, median price jumped by 3% for the quarter over the same 2009 period to a rate of $147,400.
Texas Realtors® stated that the big difference between sales in the fourth quarter of last year and the last quarter of 2009 is not as worrying as it appears. They stated that figures for the 2009 fourth quarter were inflated by the tax credit initiative of the federal government, which resulted in more bank owned real estate homes getting purchased by buyers. The tax credit was extended until the first six months of 2010, causing the gap between the comparable quarters to widen, Realtors® have added.
As of the 2010 fourth quarter, Texas is sitting on an inventory of unsold non-foreclosed and repossessed homes equivalent to 7.6 months of supplies. Despite the figure, Realtors® stated that the region is still in a much better position than other U.S. areas.