Humble Single Family Inventory Report For November, 25 2008

Humble Real Estate Market Report

This is the Humble Homes For Sale website’s first weekly post on Humble single family housing inventory. Each week, we will have a market report update detailing changes in the market and predictions on the direction of the Humble housing market, using trends in the housing inventory data.

Total Breakdown of Housing Inventory For The Humble Homes Market

 

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
6.2	1,254	$162,478	652	$206,715

 

Currently, the Humble single family real estate market is showing balance with 6.2 months of inventory on November, 25 2008. Most economists will agree that a real estate market with six months of inventory is considered to be neutral, being neither a buyer’s market nor a seller’s market. However, this overall market stability is not seen uniformly across price ranges.

The $80,000 and below price point had 4.1 months of inventory on November, 25 2008. Inventory levels of around 4 months or less is considered a seller’s market. With Humble housing inventory below $80,000 running just above 4 months, this indicates that sellers’ have the upper hand in negotiations and prices are likely to increase at or above the rate of inflation.

Humble single family housing inventory for the $80,000 to $150,000 price point came in at 5.7 months of inventory. This level of housing inventory shows stability at the price point, indicating that buyers and sellers hold nearly equal clout in negotiations. This suggests that prices should not decline and may appreciate at near the rate of inflation.

The $150,000 to $300,000 price range is currently carrying an inventory level of 6.4 months. At this inventory level, buyers begin to hold an edge in negotiations; however, home values should not see declines but, appreciation rates will likely stay below the rate of inflation. All in all, with the current credit troubles and turmoil in the countries housing market, these numbers still outperform 99% of the country.

The Humble single family housing inventory for the $300,000 and above price point shows substantial softening at 10.4 months of inventory. In the eyes of most economists, inventories of greater than 9 months is considered a weak market, where buyers have a huge advantage over sellers.  In addition, the majority of markets (excluding the luxury market) carrying in excess of 9 months tend to be flat or declining in value. This being the case, we may see declines in property values above the $300,000 price point.  

Humble Homes Inventory Breakdown For 80,000 And Below

 

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
4.1	165	$61,374	57	$65,749

 

Humble Homes Inventory Breakdown For 80,000-150,000 Price Range

 

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
5.7	543	$111,061	257	$115,454

 

Humble Homes Inventory Breakdown For 150,000-300,000 Price Range

 

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
6.4	414	$196,625	221	$211,486

 

Humble Homes Inventory Breakdown For 300,000 And Above

 

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
10.4	135	$386,996	117	$466,841

 

Conclusion

In conclusion, the Humble single family real estate market below the $300,000 price point is very healthy and should continue to see appreciation.  However, the $300,000 and above market could very well see price declines in the near future. The weakness in the $300,000 and above market is likely due to instability of the credit markets which leads to difficulties in obtaining financing on properties that require a mortgage amount exceeding the FHA loan limits. Financing within the FHA loan limits is not difficult to gain, but there has been a substantial tightening in funds available for buyers seeking loan limits above the FHA loan limit of $274,000.

Information contained in this post was acquired from the Houston Association of Realtors via the multiple listing service database and archive.  Data should be considered reliable, but is not guaranteed to be accurate.

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