Humble Housing Market Inventory Report

Humble Housing Inventory Between $270,000 And $300,000

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
8.6	64	$285,046	46	$299,551

Inventory Level Explained

Earlier today a question came in on Trulia Voices. A potential home buyer had inquired about the current inventory of homes at $300,000. Since the inventory level for a single specific price is not very useful I have chosen to form a price point defined by $300,000 plus or minus ten percent, giving us the bounders of $270,000 to $330,000. Using this price range we get an average price of active homes at $299,551.
The Humble inventory level for this price range came in at 8.6 months of inventory which is considered buyer’s market territory. Nearly all economists would agree that an inventory level in excess of 7 months leaves buyers in the driver’s seat when negotiating a transaction. Furthermore we generally see price declines occur when inventory exceeds 9 months. With this price point sitting at 8.6 months of inventory I would be inclined to suggest that we may see price declines assuming that over the next couple of months we do not see the inventory absorbed.

Humble Single Family Inventory Report For March 4th 2009

Humble Housng Inventory Report

Thank you for reading the Humble homes for sale site’s inventory post for the Humble, TX single family real estate market. We will be discussing the current month’s inventory, average price and number of homes sold during the period. If you have questions or would like to add your own insights to this information, feel free to do so in the comments section at the bottom of the page.

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
6.3	1,165	$161,384	611	$208,871

Every price category we have been following saw inventory increases over the last month, except for the $80,000 and below price point. On March 4th, 2009, the total Humble housing inventory statistic came in at 6.3 months of inventory. This jump pushed the overall market out of true neutral market territory and into what many would call a buyer’s market. Seeing only slight increases in the total number of active listings, the substantial change in the inventory statistic must be due to a continued drop in the number of sales in the market place.

The $80,000 and below Humble housing market saw a big drop in months of inventory posting just 3.1 months compared to 4.1 months at the end of January. The continued absorption of inventory in this price point is largely due to investors gobbling up properties that make for excellent monthly cash flow when rented. I expect this trend to continue because of the very strong rental market that we are seeing all across the Houston metro area. In case this is the first one of my reports that you have read, inventory levels below the 5 month mark are considered to be a seller’s market in the eyes of economists.

Inventory for the $80,000 to $150,000 price point did not fair nearly as well as that for the $80,000 and below price range. This market posted 6 months of inventory, as of March 4th, 2009, which is up substantially from the 5.2 months noted in our last Humble housing market report. Even though 6 months of inventory misses being considered a buyer’s market, the sharp turn up in inventory does not sit well for sellers, however, it is a move in the right direction for buyers actively looking for a home. If this upward movement in inventory continues, buyers will soon see the upper hand in negotiations when entering into contract with sellers.

The $150,000 to $300,000 price range witnessed a move into what would be classified as a buyer’s market over the period. As of March 4th, 2009, housing inventory posted at 6.9 months compared to the more modest level of 6.2 months of inventory as seen at the end of January. So, if you are a buyer, you will likely see more strength at the negotiation table making it much more likely that you can get the seller to make repairs or pay a portion of your closing costs.

The $300,000 and above market saw a continued strong movement up in inventory moving to 9.9 months of inventory up from 9.2 months noted in the last Humble housing inventory report. This pushes this price point further into a deep buyer’s market, where it is very likely to see price drops. The price drops are in large part due to the major strength that buyers have in the negotiation process. I believe that this increase in inventory levels is mostly thanks to the troubles in garnering financing in the higher end housing market. Right now, it is pretty easy to obtain a home loan within the FHA loan limits (which is a loan amount of $271,500 in our area). Furthermore, these loans can be obtained for as little as 3.5% down. Once you move above this price range, financing tightens up, requiring a larger down payment. Once you surpass the $417,000 point for loan amounts into what is called the jumbo market, it gets very difficult to get a loan. Most lenders require as much as 25% down and are charging steep interest rates that run 2-3% higher than those that can be obtained below the $417,000 point.

HUMBLE INVENTORY REPORT FOR 80,000 AND BELOW

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
3.1	176	$60,343	46	$67,470

HUMBLE INVENTORY REPORT FOR 80,000-150,000 PRICE POINT

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
6.0	490	$111,063	243	$116,777

HUMBLE INVENTORY DATA FOR THE 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
6.9	368	$196,006	213	$208,244

HUMBLE HOUSING INVENTORY DATA FOR 300,000 AND ABOVE

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
9.9	134	$381,922	110	$472,127

CONCLUSION

Increases in inventory for the market place should not be surprising since there is a lot of apprehension on the part of buyers right now. Some of this concern is well-founded. Some of it is not. It is highly unlikely that the Houston area will see large price drops like many of the other parts of the country, but those thinking about purchasing a house need to ensure that they do not over extend themselves. I am in the process of trying to reduce buyer worries about making a purchase by arranging insurance for all of my buyers against job loss. I have found an insurance product that will make ones mortgage payment if they were to get laid off. I am hoping that this will help those individuals that have a unique buying opportunity in this market. First time home buyers have a unique opportunity to receive an $8,000 tax credit, some of the lowest interest rates in 30 years, and plenty of inventory to choose from. Another group of buyer with a great opportunity are those that want to move up and own a home around the $150,000 and below mark, as they are likely to get top dollar for their homes, and then will be able to have an upper hand in negotiations when they go to purchase their new home in the higher price points in the market place. The one group I would strongly suggest that they wait if possible is those who are looking at downsizing, since they will likely have to give concessions to get their home sold, but then will end up not having a lot of negotiation strength when they go to purchase their next home. So, if you are selling a home in the upper price ranges and want to move into a smaller place, I would strongly suggest that you hold off until the market improves.

Humble Real Estate Market Report For December 13th 2008

Humble Real Estate Market Report

Having been very busy trying to get the Humble Homes For Sale website up and off the ground, I was unable to meet my weekly inventory posts. Until we get everything up and running, the Humble housing inventory report will be posted on a monthly basis. Typically, you can expect the report to be made the middle of each month until I get caught up on other aspects of the site.

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	1,231	$162,262	640	$200,164

 

The Humble single family real estate market has held steady overall coming in at 6.2 months of inventory as of December 13th 2008, holding steady with the numbers on November 25, 2008. However, the total number of closed sales came in behind that recorded in November, showing a continuation in the decline of total closed sales.
The $80,000 and below price point had 5.3 months of inventory on December, 13 2008, which is a substantial jump from the 4.1 months of inventory recorded November 25, 2008. This may simply indicate a seasonal slowing while still taking the same number of foreclosures onto the inventory books.
Humble single family housing inventory for the $80,000 to $150,000 price point came in at 5.7 months of inventory for both December and November 2008, suggesting that the price range is in a state of equilibrium.
The $150,000 to $300,000 price range nudged down one tenth of one percent of a month in inventory to 6.3 months of inventory. This drop in inventory came with a slight increase in average sales price. These are good signs that the price range will hold stable in the near term.
The Humble single family housing inventory for the $300,000 and above price point saw a large drop in inventory levels for December 13th of 2008, having seen 9.4 months of inventory rather than the 10.4 months witnessed in November. Having noted a number of properties being pulled off the market during the period, I figure that this movement in inventory is due to sellers pulling their homes off the market rather than a strengthening of the market conditions at the price point. Yet, it is important to note that a decrease in inventory almost always sits well for market stability. During these times where many people are very nervous, stability is the most important factor.

Humble inventory report for 80,000 and below

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
5.3	167	$61,380	74	$65,929

Humble inventory report for 80,000-150,000 price point

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
5.7	535	$110,476	252	$114,550

Humble inventory data for the 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
6.3	397	$196,497	207	$211,806

Humble housing inventory data for 300,000 and above

Months of Inventory	Sold Data – Prev. 1 Year		Current Active Data
	Number Sold	Average Price	Number Active	Average Price
9.4	136	$388,710	107	$472,109

Conclusion

Sharp changes in the lowest and the highest price ranges are the only truly notable changes during the period. They off set each other, leaving total housing inventory unchanged. Humble housing inventory not spiking during the winter months leaves us with the conclusion that market conditions are still in balance at this time and will likely stay there, unless we realize large layoffs that do not yet seem over the horizon.
Information for this post was acquired from the Houston association of Realtors database so should be considered reliable, however, it is not guaranteed to be accurate. To get a weekly update on the housing market in your zip code, just sign up for your instant comparative market analysis, and do not forget to visit the Houston real estate forum to enter into discussions on Houston neighborhoods, communities and market conditions.