In an effort to help Texas consumers to understand how completely different Texas real estate markets are when compared to other markets across the nation, the Texas Association of Realtors recently released a series of "Facts about Texas Real Estate." The following highlights are key components of that statistical information.

The median sales price of a Texas home in December 2008 was $140,900, down 4 percent from December 2007. The median price for the entire year of 2008 was $146,900, unchanged from 2007.

By comparison, the California median sales price in November 2008 was $285,680, down 41.8 percent from November 2007. The Arizona average sales price in December 2008 was $192,908, down 38 percent from $313,000 in December 2007.

Over the four year period from December 2004 to December 2008, the average home sales price in Texas has increased $15,600. Home price appreciation in Texas has not fallen below zero in the last 16 years.

Texas was 24th on the list of foreclosure rates for 2008. More than 40 percent of all foreclosure filings occurred in California and Florida. While the 2008 foreclosure rate in Texas was up 13.87 percent compared to 2007 and 14.96 percent compared to 2006, Arizona's foreclosure rate was up 203 percent from 2007 and up 655 percent from 2006.

While consumer confidence in Texas cannot remain completely impervious to national "gloom and doom" news, those "in the know" can rest assured that the realities of real estate economies in Texas are vastly different than those experienced in other parts of the world and highlighted regularly by the national media.

Source: Texas Association of Realtors

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Whether you support the recent stimulus bill passed in Washington or not, if you're considering becoming a first-time homebuyer, that bill entailed some very positive news that will directly affect your bank account. The legislation includes a measure for first-time homebuyers to receive a tax credit up to $8,000 if they purchase a home.

While a $7,500 tax credit was available to first-time buyers prior to the stimulus package, the mechanics of that credit included a 15-year repayment feature, making the "credit" in essence, a loan.

Not anymore. The $8,000 credit does not need to be repaid at all, unless the buyer resells the property in less than three years. The credit applies to first-time buyers making a purchase in 2009 and can be applied to condos and townhomes, as well as single-family properties.

The credit of up to $8,000 is applied to a buyer's federal income tax bill. If, for example, a qualifying buyer owes $2,500 in federal taxes, he or she would instead pay no taxes and receive a check from the government for a $5,500 tax refund.

If you or someone you know has been thinking of buying their first home, 2009 is an ideal time to do so. Call me anytime to get more information about this federal program and to discuss how this might benefit you and your immediate situation.

If you are considering purchasing a home, you might want to begin by taking a look at your credit. While you don't need perfect credit, it's a smart idea to find out what's on your credit report before applying for a loan. The Fair and Accurate Credit Transactions (FACT) Act of 2003 made it possible for consumers to access free copies of their credit report.

You can request one free credit report every 12 months from each of the three major consumer credit reporting agencies: Equifax, Experian and TransUnion. You might consider requesting a copy from each, as you may come across inaccuracies. If you find errors, you can try to resolve them before contacting a mortgage lender. If you come across legitimate blemishes, you may want to take steps to improve your credit rating before applying for a home loan. Even if you aren't looking to buy a home soon, you might consider taking advantage of this free look at your credit report.

Source: Texas Association of Realtors

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Property sales throughout the greater Houston area stayed in negative territory during the first month of 2009, reflecting the lingering effects the nation's recession is having on consumer confidence, according to statistics released late February by the Houston Association of Realtors (HAR). Overall January property sales fell 26.4 percent compared to January 2008, and sales of single-family homes declined by 22.7 percent.

The average price of a single-family home in Houston dropped 12.8 percent last month to $164,922 compared to January 2008. At $127,850, the January single-family home median price – the figure at which half of the homes sold for more and half sold for less – fell 8.5 percent year-over-year. January marked the fourth consecutive month of price declines.

Much of the pricing drop can be attributed to an increase in foreclosure sales, which typically sell below market prices. In January 2009, foreclosures made up 34.0 percent of all single-family home sales in the Houston area compared to 25.0 percent one year earlier. The median price for foreclosure sales reported in the MLS tumbled 23.0 percent from $104,000 to $80,500 on a year-over-year basis. The median price of traditional, non-foreclosure single-family homes dropped just 1.0 percent from $157,000 to $155,500.

Sales of all property types in Houston for January totaled 3,240, off 26.4 percent compared to January 2008. Total dollar volume for properties sold during the month was $530 million versus $817 million one year earlier, a 35.1 percent decline.

January brought a continued escalation in demand for rental properties, with leases of single-family homes up 4.8 percent and townhouses/condominiums up 24.6 percent on a year-over-year basis. This suggests that consumers who otherwise might purchase a home are instead opting to lease in order to enjoy the feel of homeownership without the financial obligations associated with a mortgage.

"Passage of the economic stimulus package will by no means trigger a home buying frenzy, but eliminating the repayment provision in the first-time home buyer tax credit will help bring buyers to the market and further reduce housing inventory," said Vicki Fullerton, HAR chairwoman. "Restoring consumer confidence is vital to healing our economy, and Congress and the president have just taken an historic step toward initiating that process."

Source: Houston Association of Realtors

The Texas economy is cooling but continues to create jobs. While the US economy lost more than 2.8 million jobs from December 2007 to December 2008, Texas gained 154,600 jobs over the same period.

The state's seasonally adjusted unemployment rate rose from 4.2 percent in December 2007 to 6 percent in December 2008. By comparison, the US seasonally adjusted unemployment rate rose from 4.9 percent to 7.2 percent during the same period.

Recent decreases in oil prices have begun to adversely affect the Texas oil and natural gas industry's ability to generate jobs. The industry's employment increased 3.7 percent from December 2007 to December 2008, a drop from 7.1 percent for the period November 2007 to November 2008. Even so, the industry ranked first among Texas industries in employment growth rate.

The professional and business services industry and the leisure and hospitality industry posted annual employment growth rates of 3.3 percent from December 2007 to December 2008 and ranked second among Texas industries in job creation.

Source: Real Estate Center at Texas A&M University

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