Sales of single-family homes for the greater Houston area achieved the highest volume of 2009 in May, and average and median home prices climbed to the highest levels since August 2008, showing signs of a real estate market that is benefiting from seasonal spring home buying. However, compared to one year earlier, overall May property sales were down 23.3 percent and sales of single-family homes dropped 21.2 percent, according to new monthly data compiled by the Houston Association of Realtors.

At $157,450, the May single-family home median price – the figure at which half of the homes sold for more and half sold for less – rose 1.6 percent versus one year earlier. The average price of a single-family home in Houston edged up 0.3 percent last month to $213,474 compared to May 2008.

Sales of foreclosure properties continued to shrink in May. Those properties, which typically sell below market prices, made up 19.9 percent of all single-family home sales in the Houston area. That compares to 34.0 percent in January, 28.0 percent in February, 24.5 percent in March and 23.6 percent in April. The median price of May foreclosure sales reported in the Multiple Listing Service (MLS) tumbled 5.3 percent from $89,900 to $85,108 on a year-over-year basis.

Sales of all property types in Houston for May totaled 5,539, off 23.3 percent compared to May 2008. Total dollar volume for properties sold during the month was $1.1 billion versus $1.5 billion one year earlier, a 23.8 percent decline.

Demand for rental properties eased slightly in May, with leases of single-family homes up 0.1 percent and leases of townhouses and condominiums up 6.2 percent on a year-over-year basis. This may be an indication that consumers are growing more inclined to purchase rather than lease homes, especially as interest rates—still at historically low levels—begin to rise.

"The more I speak with real estate associations around the country, the more I appreciate the strength with which the Houston market has weathered the economic downturn," said Vicki Fullerton, HAR chair. "Our current housing climate has been performing at about 2004 levels while other regions of the U.S. are suffering what Houston endured back in the 1980s," she added. "Many Houston Realtors are reporting increased activity this spring, and we hope that translates to measurable improvement in overall market performance."

Source: Houston Association of Realtors

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In a recent report, Forbes magazine named the top 10 cities in the US that are expected to make a swift economic revoery, as well as the 10 that are likely to have a long road head.

According to the magazine, Austin, San Antonio, Dallas and McAllen are likely to make an economic comeback in the months ahead.

According to the report, "these areas did not see the massive real estate bubble that formed in states like California, Nevada and Florida. The economy is diverse, with heavy growth coming from education and health care in recent years."

Source: Forbes.com

Five of the nation's top 10 metropolitan areas are in Texas, according to the Brookings Institution, which tracks factors like employment, wages, home prices, and foreclosure to determine the health of the nation's 100 largest metros. Texas cities in the national top 10: San Antonio, Houston, Austin, Dallas, and McAllen.

Source: Brookings MetroMonitor report

1. Protect your credit score.

2. Beware of offers that sound too good to be true – they probably are.

3. Become an educated consumer. Talk to your Texas Realtor about predatory lending practices – what they mean and how to keep from being a victim.

4. Don't buy more house than you can afford right now.

5. Think twice about non-traditional loans, such as interest-only and adjustable-rate mortgages (ARMs). Fixed-rate mortgages are just that – fixed.

6. When purchasing a new home, look beyond the monthly mortgage. Other costs to consider include property taxes, homeowner's insurance, utilities, maintenance, and, depending on the neighborhood, homeowners' association fees.

7. Don't sign a blank document or anything you don't understand.

8. Know and understand the terms of your mortgage.

9. Don't let anyone persuade you to "pad" your income to qualify for a loan.

10. If you're having trouble making your monthly mortgage payment, don't hide from your lender. Work with your mortgage lender to find out what your options are.

11. Work with your Texas Realtor to find a reputable lender and a loan product that works for you.

12. Call the foreclosure prevention hotline, 888/995-HOPE (4673), or visit www.995HOPE.org. Sponsored by the non-profit Homeownership Preservation Foundation, these consumer services are free.

Source: Texas Association of Realtors

Ready for some changes to your present home or want to improve the value of a rental property? If so, you're not alone. According to a recent survey conducted by Lowe's Home Improvement stores, the home improvement industry is booming. Homeowners spent an average of more than $3,700 on home improvement projects in the past year.

It probably won't come as a surprise to most people, but the Lowe's report found that 81 percent of homeowners consider their home to be a better long-term investment than the stock market.

Your Texas Realtor can also be a great resource when considering remodeling projects – whether it's directing you to the perfect fixer-upper house when you're buying, or offering advice and information once you're in the house. Some people even consult with their Realtor on what improvements they should make to help sell their homes later – a great idea, since your Realtor is an expert at re-sale features.

Source: Texas Association of Realtors

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