The End of 2011 – Market Update

It was a busy and brisk year in The Woodlands this year as far as real estate goes.

The seasonal market cycles returned to normal as the federal government home buyer tax credit incentives finally disappeared from the market place.

Although the national economy and job market caused many to become more cautious in expenditures, rates remained historically low for most of the year. Home buyers that fell into a “no-risk” or a “low-risk” category according to lenders, were able to obtain favorable financing terms and many continued to move forward with well-laid plans to purchase their dream home.

At the same time, some sellers found themselves making decisions to become more conservative with their personal finances and made respective decisions to downsize their personal home.

We personally experienced buyers of all types this year:  move-up buyers, families who have been renting over the past year, downsizing buyers, first-time investors, and of course, relocation buyers.  Relocation continues to have a significant impact on our market as The Woodlands is the community of choice for business professionals relocating to the Greater Houston area.

Regardless of the motivation, a significant amount of real estate changed hands in The Woodlands in 2011 – in fact 11.6% more transactions than the prior year.

Prices were relatively unchanged for the year. The average price of homes sold in The Woodlands in 2011 was $356,344 compared to $353,728 in 2010.

Average number of days on the market peaked during the year in February at 102 days and was at a yearly low in September at 65 days. For comparison, average days on the market in 2010 ranged from a low of 58 days to a high of 93 days.

In summary, the following are some key statistics from the year 2011.

  • Unit sales (number of homes sold) are up 11.6%
  • Inventory (number of homes for sale) is down 24.3%
  • The average price of homes sold is up slightly at .74%
  • Average days on the market at the end of the year has declined to 69 days

Looking ahead to 2012, it is important to note that the market is starting the year with 24.2% less inventory than 2010 and 4.1% less inventory than 2009.  With the sales activity increase of 11.6%, this situation is ideal for home sellers.

As we reported last month, several price range categories have less than four months of supply of inventory.  That shortage of inventory continues into the first of 2012 as all price ranges below $600,000 have 4 months of supply or even less.

For a real-time graphical representation of key market statistics in The Woodlands, please click here.

Photo credit Creativity103

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