Clear Lake and Galveston Real Estate is still moving at a swift pace. The issues the mortgage industry had in the previous few months have not had the affect that some in the media predicted. The number of sales are down from the record breaking year of 2006 but we are still in line with the past 3 years of sales. The important number, appreciation is far above last year with a 3 – 4% increase in our area. Forbes has predicted an 8% increase in appreciation for the Greater Houston Market. In Galveston County there is an increase in properties for sale but overall homes on average are still selling within 90 days.

One problem I am seeing is that homeowners who purchased new homes from home builders 2-5 years ago cannot afford to sell now. This year I have had numerous meetings with different home sellers that simply owed more than their home is worth. My next blog will address the trend that I see in new subdivisions and how to avoid paying to much.

9/1 – 11/19 # of Property Sales
Clear Lake Area
2004 557
2005 512
2006 557
2007 436

Galveston County
2004 776
2005 780
2006 961
2007 865

Statistics don’t lie we are still experiencing an great market. In Clear Lake and Galveston County homeowners are seeing 5-6% appreciation form last year which is outstanding. Forbes predicts the Greater Houston area will see an 8% appreciation from this year. New Construction impacts our market more than anything else. In every area in Clear Lake and Galveston homeowners are competing with builders. Because of the competition its important that properties be in good condition and priced correctly.

Clear Lake Area
§ Clear Lake was ranked #11 out of 46 listed on the October 2007 Houston Hotness Index because 12.1% of all listings went under contract during that one month!
§ Clear Lake single-family home sales are down by 168 units or 8.03% over October YTD 2006 with 1,925 homes sold in 2007 as compared to 2,093 last year.
§ Contracts written and pending to close year-to-date are 82 units below last year for a total of 1,281 MLS recorded pending sales.
§ Homes listed and on the market in Clear Lake are down by 6.17% from this time last year with 806 single-family homes on the market today as compared to 859 last year.
§ Clear Lake’s Average sales price is up by 5.14% and currently stands at $187,403, as compared to $178,247 last year during the same time frame.
§ Days on the market register at 67, which represents the same DOM it took to sell a home last year. Month’s inventory is 4, a very low supply in comparison to the Houston overall market and Clear Lake’s months of inventory last year, which was 4.4. Clear Lake currently enjoys one of the few areas with less supply than last year. Its’ inventory has adjusted well in relation to sales demand and therefore should play a significant role in keeping home price appreciation level or on the rise.

Greater Galveston County
§ Single-family home sales in Galveston County were up 6.80% October YTD 2007 over the previous year during the same time frame with 3,610 home sales recorded in the Houston MLS year to date. There were 3,380 closed home sales last year during the same time frame.
§ Pending contracts recorded October YTD 2007 were up by 8.23% compared to last year. Pending units recorded year-to-date currently stand at 2,564 units whereas last year, pending units were 2,369 units.
§ Galveston Homes on the Market reached 2,808 units in October 2007 and are up by 15.60% over last year, when inventory was 2,429.
§ Galveston County’s average sales price is $196,399 and that figure is up by 6.43% over last year. The median sales price, where half the homes sold above and half sold below, is up by 6.67% and is currently $160,000.
§ Galveston County currently has 8 months of inventory. Last year Months of inventory were 7.8. Days on the market [DOM] to sell a home in Galveston County is currently 92 and that is longer than last year’s 80 DOM.
§ While Galveston County has experienced a great market, with a 6.8% increase in sales. Listings should be precision priced at its current 95% list price/sales price ratio or higher and should be in showcase condition to attract the best offer.