In June I posted a video to my Facebook page that was created by the Houston Association of Realtors (HAR). The video was a May 2011 press release from HAR that gave some statistics about the Houston real estate market. Carlos Bujosa and David Mendel also pointed out in the clip that because the 2010 Homebuyer Tax Credit was in place during the first part of last year, it is not possible to make year-over-year monthly comparisons. In other words, it is unfair to compare April 2011 to April 2010 because during April 2010 home buyers were eligible for a tax credit from the US government if they bought a home that month. The same incentive did not exist in April 2011.
And this is absolutely true. Therefore, I have been tracking The Woodlands real estate numbers each month, calculating the statistics on a year-to-date basis. A year-to-date trend provides a more long-term view of the market to see where it is performing in the bigger picture.
Here are some of the facts for The Woodlands market for 2011 (year-to-date through June), as compared to the same time period for 2010 (year-to-date through June).
- Unit home sales are up by 4.6% – 983 homes have closed in 2011 compared to 940 in 2010.
- The number of homes for sale (inventory) at the end of June is down compared to last year. This year there were1,021 homes for sale at the end of June; last year at the same time, there were 1,120 homes for sale. This is an 8.8% decline in inventory (listings).
- The number of contracts written in 2011 is 1,214 so far this year. Last year at the same time, there were 1,030 contracts written. This is a year-to-date increase of 17.9%.
What do these numbers mean? The Woodlands real estate market has essentially sold through the 20% increase in inventory that it started out with in January at the first of the year. We are experiencing a 17.9% increase in the demand for homes, and currently have an 8.8% decline in inventory. Generally, this is a good indicator for home values as prices usually rise in this economic scenario.
The Woodlands real estate market for the first half of 2011 definitely appears to be picking up steam and not languishing. In fact, if you’ve been out looking for a new home lately, you may have noticed that they are going fast!
This environment, however, does not necessarily guarantee selling success. There are other important factors to consider when listing your home for sale– including condition, location, and price.
If you are ever curious about the current state of The Woodlands real estate market, (or looking for tips to successfully prepare your home for The Woodlands market) feel free to check in at my Facebook page, I love The Woodlands, for an update.