Foreclosure Listings Push Down Houston Home Sales
April 22nd, 2009 by 
Joseph Smith
Home sales and home prices of Houston foreclosures both declined in March by 16 percent, as foreclosure lists continue to rise, according to data gathered by the Houston Association of Realtors.
A total of 4,355 single-family housing units were sold through foreclosure listings. Most of the units sold were existing single-family homes, but there were several new homes sold.
The drop in sales and in prices in March was the 19th straight drop in sales in Houston, but the March decline rate was lower than the declines in January and in February when foreclosure listings were overloaded and when housing sales fell by over 20 percent from the previous month.
Vicki Fullerton, chairperson of the realtor association and top broker at The Woodlands and Spring unit of RE/MAX, said the slowing pace of price decline is a positive sign, but she said it is too soon to provide an outlook on Houston’s residential real estate market.
In March, the median home price was $145,000, a drop of only 4 percent from the price level in March last year.
A report from the Federal Reserve Bank of Dallas this month described housing conditions across Texas as still weak because of the continued addition of properties to foreclosure listings. But the report cited housing prices in most metro areas in the state that are holding up, resisting price pressures from loaded foreclosure listings.
The realtors’ association also noted that foreclosure listings in March continued to push down home prices in Houston, but the impact was not as great as in the past months.
Homes sold from foreclosure listings accounted for one-fourth of total sales of single-family homes in March, an improvement from the 34 percent contribution in January and the 28 percent share in February.
Homes sold at prices below $80,000 increased by 20 percent, mostly comprising of properties from foreclosure listings. Sales of higher-priced homes declined.
Notwithstanding the decline in sales and prices due to loaded foreclosure listings, the real estate agents are encouraged by the lower rate of declines. They also credit the drop in mortgage rates and the offer of tax credits for first-time homebuyers as factors for their renewed optimism.
Real estate agent Stephanie Edwards-Musa related she is optimistic because she has been receiving more inquiries from first-time home buyers and there are more borrowers getting mortgage loans.
