Houston Real Estate Market Recovered Despite Rising Unemployment
October 28, 2009 -HOUSTON, Oct 28, 2009 /PRNewswire via COMTEX/ —-Movoto.com is reporting that housing prices in Houston have risen significantly in 2009, despite the alarming nation-wide increase in the unemployment rate. The national rate of unemployment reached 9.8% in September 2009. Although the cities of both Houston and Dallas have a lower unemployment rate than the national average, each city has still seen a continuous increase throughout 2009 to approximately 8.1% by the end of September 2009. The unemployment surge has had little effect on the recovering real estate market in both US cities as homebuyers have continued to buy and the average price of a home for sale has increased during the same period.
The average price of homes for sale in Houston in the first quarter of 2009 fell to $180,373 compared to an average price of $199,747 in the same quarter of 2008. The unemployment rate rose 1.7% in this period. The prices have shown a recovery in the last 6 months with an average home price of $213,117 in the third quarter of 2009, despite a corresponding 2% rise in unemployment beginning the first quarter of 2009.
The Dallas real estate market showed similar results. The average price dipped to $186,167 in the first quarter of 2009 compared to the average price of $203,433 in the same quarter of 2008. The market showed resilience in the third quarter of 2009 as the average price rose to $205,900, despite the rise in unemployment to 8.1% by the end of September 2009.
Houston Unemployment Rate Average Price Active Listings Sales
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Q1 2008 4.4% $199,747 154,287 15,984
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Q2 2008 4.3% $215,484 160,177 21,109
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Q3 2008 5.1% $218,672 156,765 18,079
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Q4 2008 5.2% $191,503 141,780 13,994
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Q1 2009 6.1% $180,373 134,693 12,257
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Q2 2009 6.7% $209,826 136,540 16,743
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Q3 2009 8.1% $213,117 138,141 18,302
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Dallas Unemployment Rate Average Price Active Listings Sales
—— —————– ————- ————— —–
Q1 2008 4.4% $203,433 88,263 11,574
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Q2 2008 4.7% $218,367 91,151 15,142
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Q3 2008 5.2% $213,533 85,497 14,330
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Q4 2008 5.9% $202,967 77,457 9,802
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Q1 2009 6.9% $186,167 77,057 8,943
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Q2 2009 7.4% $204,067 78,377 12,435
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Q3 2009 8.1% $205,900 71,193 12,907
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The number of home sales in both cities remained strong and was unaffected by the continuous increase in the unemployment rate. In Houston, the number of houses sold dropped from 6635 in August 2008 to 4336 in September 2008. However, homebuyers continued to purchase homes in 2009. Approximately 5654 houses were sold in Houston in September 2009, a 30% increase over the number of homes sold in September 2008. In January 2009, the number of houses sold in Dallas reached a low point over a one-year period, bottoming out at 2340 houses sold. The number steadily increased to 4010 houses sold in September 2009. Compared to the number of houses sold in September 2008 – 4293 houses – demand for houses in Dallas has recovered as well.
About the Report:
Movoto.com compiled real estate listing, sales number and price data from various sources including data from the Multiple Listing Service. Unemployment data was gathered from Economagic.com and Bureau of Labor Statistics. The data cited within this report was pulled at the end of October 2009.
About Movoto, Inc:
Founded in 2005, Redwood-City-based Movoto provides a unique online home buying solution that combines easy-to-use research tools with ready access to a network of pre-qualified and experienced local agents. Movoto’s current coverage of homes for sale in Arizona, California, Florida, Georgia, Maryland, Massachusetts, Oregon, Texas, Illinois, North Carolina, New York , Virginia and Washington. For more information, visit Movoto.com.
