Spring Texas Real Estate: Market Report August 2010

What’s going on with the Spring Texas Real Estate Market?  Earlier in the year our YTD home sales were higher than in 2009 due to the home buyer tax credits.  Now that the tax credits have expired, the real estate market is having to live without artificial stimulates.  And with high unemployment rates, low consumer confidence, and tighter lending requirements, the real estate market is naturally going to have less sales.  July’s YTD home sales were down 4% and now August’s YTD home sales are down 5% over 2009.

I predict YTD home sales will continue in a downward trend for the Spring Texas real estate market.  Why? Because in November 2009, our real estate market experienced another artificial stimulate with the anticipated expiration of the home buyer tax credit. The projected tax credit expiration caused more home sales to occur in September – November last year.  When you combine no tax credits, high unemployment, and low consumer confidence, home sales will be down in 2010 in comparison to 2009.

spring texas real estate market August 2010The inventory of available Spring Texas homes for sale remains high.  The quantity of active home listings remain virtually unchanged as July’s active listings were 1,432 and August’s were 1,433.

Fewer buyers and more sellers translates into a 32% increase in months of inventory which is currently sitting at 7.8 months. Last August, our months of inventory was 5.9 months.

Our average sales price does not accurately reflect the price pressures being put on home prices caused by the increase in months of inventory. The reason we are experiencing an increase in the average sales price is due to a shift in the mix of price range of homes being sold.

Want more numbers? Check out past Spring Texas real estate market reports.

The data represented is from the Real Estate Center at Texas A&M University and the Houston Association of Realtors MLS for single family existing homes in Area 13. Area 13 covers the geographic boundaries of East – I45 to West – Hwy 249 to South – Beltway 8 to North – Spring Cypress. A good portion of the houses in MLS area 13 have a Spring Texas mailing address