Bad Credit Mortgage Restrictions Affect Houston Home Sales

Home sales in the Houston housing market continued to decline in June. The number of single-family homes sold during the month was 7,154, 6.9 percent fewer than a year earlier.

The decline followed similar lower sales in May compared with May 2006 - the first time in six years that sales have declined in consecutive months.

Almost all of the decline in June home sales is within the $80,000 to $140,000 price range and can be attributed to tighter restrictions in the bad credit mortgage market, according to statistics from the Houston Association of Realtors.

Year-to-date sales in June were down 0.8 percent compared with the first six months of 2006.

On the positive side, the median price of a single-family home in June was a record $160,000; 2.6 percent higher than a year previously, while the average sale price was 3.7 percent higher than in June last year at a new high of $220,217.

In national terms, Houston’s June median price of $160,000 was 28.3 percent less than the national median price in May of $223,000 in May, according to statistics released by the National Association of Realtors.

“We continue to create our own story in the Houston market,” says Rob Cook, HAR chairman and owner and mortgage broker of Robert D. Cook Properties. “While we are experiencing a gentle decline, we can still encourage those looking for a new home to buy because there is a wealth of inventory.”

Cook adds that while this Texas housing market is continuing to experience fallout from the subprime/foreclosure issues, it remains healthier than most of the country, which has seen a 10.8 percent fall in sales and decreases in pricing.

Month-end pending sales - those expected to close within the next 30 days - of 5,615 were down 1.5 percent compared with June last year.