Texas experiencing sales similar to 2009, strong numbers over all

The recent Texas Quarterly Housing Report found Texas real estate sales comparable to 2009 sales in the second quarter of 2011, due in part to lingering effects of the federal homebuyer tax credits from 2010.

The volume of single family home sales was 12 percent less than the same quarter in 2010, when tax credits drove buyers into the housing market. Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M University said because of the previous year's tax credit, he was surprised the disparity between the years was not larger.

The median home price was 1 percent higher in the second quarter of 2011 than the previous year, and the average home price was 4.6 percent higher. Gaines said the increase in average price indicates strong activity among higher priced homes.

"Buyers of higher priced homes have been less impacted by tightened mortgage lending standards, and real estate has been an attractive investment vehicle due to instability in other investments, such as securities," Gaines said.

Gaines added that the Texas price stability does not match up with other parts of the country that have experienced sharper decreases in median and average home price.

Dwight Hale, chairman of the Texas Association of Realtors told Biz Journals, "Texas has dominated national headlines for economic strength, which makes it clear the recovery continues in our state." 

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