The Houston real estate market showed continued signs in August of attempting to break free from the downward trend in property sales that first began in September 2007.

Boosted by seasonal summer home buying, including an influx of first-time home buyers taking advantage of the federal government's soon-to-expire $8,000 tax credit, the August volume of single-family home sales across the greater Houston area slid 10.1 percent compared to August 2008, according to monthly data released late September by the Houston Association of Realtors. That follows July's 6.1 percent (corrected) drop, which was the smallest decline since the market downturn began in September 2007. Total property sales tumbled 11.0 percent in August on a year-over-year basis following last month's 5.1 percent drop, which was the smallest rate of decline since November 2007 when it was off by 10.2 percent.

At $160,880, the August single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 0.6 percent from one year earlier to the third highest level of 2009. That's the fourth straight monthly increase in the median price. The average price of a single-family home in Houston dipped 4.2 percent last month to $213,396 compared to August 2008. That represents the third highest average price of the year.

Foreclosure property sales slowed again in August, making up 16.7 percent of all single-family home sales in the Houston area compared to 18.3 percent in August 2008 and the 12-month peak of 34.0 percent in January of this year. The median price of August foreclosure sales reported in the Multiple Listing Service (MLS) declined 7.5 percent from $93,000 to $86,000 on a year-over-year basis.

Sales of all property types in Houston for August totaled 5,904, off 11.0 percent compared to August 2008. Total dollar volume for properties sold during the month was $1.0 billion versus $1.2 billion one year earlier, representing a decline of 13.9 percent.

"We knew going in that recovery would be a gradual process, however overall indications continue to show the Houston real estate market on strong footing, particularly when it comes to price appreciation," said Vicki Fullerton, HAR chair. "Our Realtor members report that many first-time homebuyers have been taking advantage of the $8,000 tax credit, but time is running out with that incentive set to expire on November 30."

Source: Houston Association of Realtors

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Economists say some of the country's real estate markets are showing early signs of repair, according to an article released mid-September by Forbes called "Where Home Prices are Likely to Rise."

Forecasters at Moody's Economy.com determine how prices will move relative to where they are now. They say the Texas market will continue to hold steady, despite some minor fluctuations over the next five years. In fact, they predict Austin and San Antonio will be the only cities to see prices rise this year due to their reputation for price stability.

Economists credit the Texas real estate market for avoiding price inflations compared with other parts of the country and for tougher zoning laws that curbed overbuilding.

Source: Texas Association of Realtors

The Texas economy is predicted to begin a slow, steady recovery in 2010, according to BBVA Compass' US Regional Watch third-quarter report.

The report predicts a 1.7 percent increase in the state's gross domestic product (GDP) in 2010, following a small contraction in 2009. This will be aided in part by a surge in home sales, according to the bank's economists.

Home sales across Texas are predicted to increase by 4.5 percent in 2010 after declining by 12 percent by the end of 2009.

Though Texas projected a 9.5 percent deficit at the beginning of the year, it is the only state among the seven Sun Belt states covered by BBVA Compass to forecast a balanced budget in 2010.

The report also said that Texas will benefit the most from funding through the federal government stimulus program, considering the amount of money to be received by the state equates to its entire 2009 budget shortfall.

Source: Texas Association of Realtors

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The appraised value of a property is a professional estimate of a property's market value. It's based on the recent sales of similar properties, square footage, location, construction quality, and more. An appraisal varies in cost depending on the price and size of the home. Most lenders require appraisals as part of the loan application process.

But don't confuse the appraisal with market value. The appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. And it should give you a pretty good idea what your home will sell for. Ultimately, though, your home's market value is the price a buyer is willing to pay for it. Having your home professionally appraised before putting it on the market will help you and your Texas Realtor determine a fair asking price. There are other methods of determining the value of your home, including a comparative market analysis (CMA). A CMA compiles information and sales prices from homes similar to yours from your neighborhood that have sold recently. Many Realtors perform CMAs for clients and potential buyers.

Whether you rely on a CMA, an appraisal, or both, you will be able to price your home according to objective measures rather than a gut feeling or a number plucked from the air.

Source: Texas Association of Realtors

When your home is on the market, a prospective buyer may come at you with a lowball offer. It's hard to not get offended because you love your house, but you should keep emotion out of it. Remember that this is a business transaction and there are many reasons a buyer might present such an offer.

Many parts of Texas are growing and there's an increased need for housing. This attracts investors, who may throw offers at the wall just to see if they stick.

A low offer might also be to see how desperate you are to sell. When there's a high amount of inventory, especially foreclosure properties, buyers feel that they have the upper hand. Counter with something that you see as reasonable and see how the buyer responds.

If you're not happy with an offer, negotiate—even in a buyer's market. How quickly you need to sell the property will obviously affect the amount you're willing to accept, but no matter your motivation or situation, you should make a counteroffer. If a buyer really wants the house, he will buy it at a fair price. If not, you're no worse for the wear.

The only time you might consider the outright rejection of a low offer is in a strong seller's market. Even in those times, though, it's advisable to counter—this will show that you're willing to play ball, but only on realistic terms.

When you get a lowball offer, it benefits you to play the counteroffer game. Trust your Realtor to help you with the deal. Not only will I help you arrive at a reasonable price when you're listing the property, I'll advise you throughout, and handle the negotiations of the deal, as well.

Source: Texas Association of Realtors

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