Jul. 2, 2008
It's hot, so that must mean it's time to buy – or sell – a house! Summer has traditionally been the top buying and selling season for real estate. What better time to get the house on the market and move before school starts again in August?
More families buy or sell homes in the summer months than during any other time of year. And it would appear that national statistics are backing up the fact that many buyers think that now is a good time to do either.
According to the National Association of REALTORS® (NAR), existing home sales increased during the month of May – with buyers taking advantage of lower home prices and a relatively stable economy.
"Homebuyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages," says Richard Gaylord, NAR president. "Today's buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth."
If you're looking for a house this summer, it pays to shop around. Lawrence Yun, NAR chief economist, says that, nationally, there's still a lot of inventory in the market.
"The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down," he says. "Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales."
Here in Texas, the supply of inventory, based on May 2008 stats from the Real Estate Center at Texas A&M University, varies, with the average just over 6 months across the state. What does this mean? There are plenty of houses to choose from, but – unlike some places outside of Texas – not so many that it constitutes a glut of homes on the market.
Consider that there are 12,415 homes for sale in Austin; 30,340 in Dallas, and a whopping 41,318 homes for sale in Houston. So, Texas buyers can take their pick.
The best course of action this summer is also the best strategy for any Texas homebuyer: get your finances in order, get pre-approved before you buy, and get recommendations from friends, family, and co-workers for the Texas REALTOR® who can help you find the house that will best suit your needs.
Thanks to national headlines, Texas homesellers might be a little wary but there's really no need for that here. Consider that in April 2008 – the "pre" summer selling season – homeowners sold 4,428 homes in Dallas. And in May 2008, another 5,088 homeowners sold their homes.
And, the same increases in home sales happened in Austin (2,393 sales in May 2008 vs. 2,144 sales in April) and in Houston (6,681 sales in May 2008 compared to 5,983 sales in April), plus other increases across Texas cities.
The bottom line is that, when homes are priced realistically (as in a fair-market analysis of what homes in your neighborhood are really selling for), and marketed diligently, they will sell.
And they'll probably sell for a good price. Median home prices have risen across the state – from $159,000 in April 2008 to $164,700 for May 2008 in Dallas; from $149,000 to $156,000 in Houston; and from $187,000 to $194,700 in Austin.
The fact is, in this month when our nation celebrates its birthday and all that the American Dream entails, housing in Texas is still a robust activity – whether you're buying or selling.
