Apartment Rent Decreases in Houston

Wednesday, April 25, 2012

Apartment Rent Decreases in Houston

Apartment rent decreases in Houston, increases nationwide

Houston Business Journal by Olivia Pulsinelli, Web producer

Date: Wednesday, April 25, 2012, 11:06am CDT

The average rent for apartments in Houston decreased 1.1 percent over the past year, a new analysis from TransUnion shows.

Olivia Pulsinelli 

Web producer - Houston Business Journal

The average rent for apartments in Houston decreased 1.1 percent over the past year, a new analysis from TransUnion shows.
Houston’s average rent was $881 in the first quarter of 2012, down from $891 in the same quarter a year earlier. Meanwhile, the average rent nationwide was $865 in the first quarter, up 4.4 percent from the $829 average recorded in 2011.
That increase is not surprising considering vacancy rates reached their lowest level since 2001, TransUnion Rental Screening Solutions President Mike Mauseth said in the company’s statement.
However, the average rent declined in six of the 10 major markets TransUnion analyzed for its report. The largest declines were in Denver, dropping 8.8 percent; Chicago, falling 4.8 percent; and Los Angeles, decreasing 2.6 percent. Atlanta was the only market to experience a significant increase, with a 6.3 percent jump in average rent.
Mauseth noted differences even in large metro areas situated relatively close to each other, as prices decreased in Houston and Los Angeles but increased in Dallas and San Diego.
TransUnion analyzed more than 130,000 rental applications from property managers nationwide.

Olivia Pulsinelli is the web producer for the Houston Business Journal's award-winning website. #realestateallaround

Houston Association of Realtors® MLS Press Release

MLS Press Release
Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 24,000 REALTORS®

 

Year/Month

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

MLS Report for March 2012

HOUSTON PROPERTY SALES RISE FOR A TENTH STRAIGHT MONTH

Average and median prices reach the highest levels for a March in Houston while inventory maintains its lowest level in more than three years

HOUSTON — (April 17, 2012) — The Houston real estate market enjoyed a tenth consecutive month of rising sales in March, with homes continuing to sell quickly enough to keep housing inventory at its lowest level since December 2008. Average and median prices achieved the highest levels for a March in Houston, with the average price coming just a few dollars shy of the all-time high set in June 2008.
According to the latest monthly data prepared by the Houston Association of REALTORS® (HAR), March sales of single-family homes rose 7.8 percent versus one year earlier. That follows February's 15.6 percent jump which was the biggest sales boost since last September. Declining sales of homes priced below $80,000 combined with increased activity in the luxury housing segment fueled the pricing gains.
"March was an excellent month for home sales in Houston and the healthy appreciation in pricing is welcome news as well," said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. "Inventory remains at its lowest level in more than three years and is outpacing the national real estate market. The moderation in pending sales in March could possibly translate to a leveling off of sales before we enter the summer buying season, but we will know for sure next month."
The March single-family home average price rose 5.7 percent year-over-year to $227,270, the highest level for a March in Houston and only $70 below the all-time high reached in June 2008. The median price—the figure at which half of the homes sold for more and half sold for less—climbed 7.8 percent to $161,750, also a record high for a March in Houston.
Foreclosure property sales reported in the Multiple Listing Service (MLS) fell 12.8 percent year-over-year in March. Foreclosures comprised 19.6 percent of all property sales, which is down from the 21.1 percent level observed over the past 12 months. The median price of foreclosures in February was flat at $81,500.
March sales of all property types in Houston totaled 5,908, an increase of 7.4 percent compared to March 2011. Total dollar volume for properties sold during the month soared 15.2 percent to $1.3 billion versus $1.1 billion a year earlier.

March Monthly Market Comparison

The month of March brought Houston's overall housing market positive results when all sales categories are compared to March 2011. Total property sales, total dollar volume and average and median pricing rose on a year-over-year basis.

Month-end pending sales for March totaled 4,162. That is down a fractional 0.7 percent from last year and may suggest a slight tapering of sales when the April housing data are compiled. The number of available properties, or active listings, at the end of March declined 17.8 percent from March 2011 to 41,997. For the second month in a row, the inventory of single-family homes held to the lowest level since December 2008-5.6 months. That compares to 7.5 months one year earlier and means that selling the entire inventory single-family homes currently on the market would take 5.6 months to complete based on the past year's sales activity. The figure is superior to the national inventory of single-family homes of 6.4 months recently reported by the National Association of REALTORS® (NAR). These indicators continue to demonstrate that Houston has a balanced real estate marketplace.

CATEGORIES	MARCH 2011	MARCH 2012	PERCENT CHANGE
Total property sales	5,499	5,908	7.4%
Total dollar volume	$1,122,788,737	$1,293,042,237	15.2%
Total active listings	51,091	41,997	-17.8%
Total pending sales	4,190	4,162	-0.7%
Single-family home sales	4,634	4,996	7.8%
Single-family average sales price	$214,980	$227,270	5.7%
Single-family median sales price	$150,000	$161,750	7.8%
Months inventory*	7.5	5.6	-25.9%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Single-Family Homes Update

March sales of single-family homes in Houston totaled 4,996, up 7.8 percent from March 2011. This marks the tenth consecutive monthly increase.

Broken out by housing segment, March sales performed as follows:

$1 - $79,999: declined 8.4 percent,

$80,000 - $149,999: increased 3.5 percent

$150,000 - $249,999: increased 19.7 percent

$250,000 - $499,999: increased 12.1 percent

$500,000 - $1million and above: increased 12.5 percent

At $227,270, the average price of single-family homes rose 5.7 percent from last March, resulting from a combination of increased sales activity among luxury homes and a decline in the sales of homes priced below $80,000. The average price achieved a March high but fell just shy of the historic level of $227,340 reached in June 2008. At $161,750, the median sales price for single-family homes climbed 7.8 percent year-over-year, also achieving a high-point for a March in Houston.

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In March 2012, existing home sales totaled 4,088, a 6.3 percent increase from March 2011. The average sales price rose 6.5 percent from last year to $212,524 and the median sales price increased 7.4 percent to $145,000.

Townhouse/Condominium Update

The number of townhouses and condominiums that sold in March declined 3.6 percent compared to one year earlier. In the greater Houston area, 374 units were sold last month versus 388 properties in March 2011.

The average price jumped 15.2 percent to $166,228 compared to March 2012. The median price of a townhouse/condominium rose 17.4 percent to $135,000.

Lease Property Update

Demand for lease properties persisted throughout the Houston market in March. Single-family home rentals rose 10.3 percent compared to one year earlier and year-over-year townhouse/condominium rentals increased 3.8 percent.

Houston Real Estate Milestones in March

Volume of single-family home sales rose 7.8 percent, accounting for the tenth consecutive monthly increase;

At $227,270, the single-family home average price reached the highest level for a March in Houston and came just $70 short of the all-time high achieved in June 2008.

At $161,750, the single-family home median price also hit the highest level for a March in Houston;

Single-family home rentals rose 10.3 percent;

Townhouse/condominium rentals increased 3.8 percent;

5.6 months inventory of single-family homes remains at the lowest level since December 2008 and compares favorably to the national average of 6.4 months.  #realestateallaround

Report alleges discrimination in REO maintenance

Foreclosed homes in minority communities are not kept up as well as those in predominantly white areas, according to a housing group's investigation.

By Teresa at MSN Real Estate Mon 2:56 PM

UPDATE, April 10, 2012: The National Fair Housing Alliance filed a complaint with the U.S. Department of Housing and Urban Development against Wells Fargo, alleging discrimination in foreclosure maintenance. The company denied the charge.

Lenders are more likely to maintain foreclosed homes in predominantly white neighborhoods, while allowing those in minority neighborhoods to fall into disrepair, according to a fair-housing organization.

The National Fair Housing Alliance, a nonprofit created to fight housing discrimination, and four of its member organizations looked at the marketing and maintenance of 1,000 foreclosed properties in nine cities: Atlanta; Baltimore; Dallas; Dayton, Ohio; Miami; Oakland, Calif., Philadelphia; Phoenix; and Washington, D.C.

The investigation found that bank-owned properties in minority neighborhoods were 42% percent more likely to have multiple maintenance issues than properties in white neighborhoods. The findings are detailed in a report, "The Banks Are Back, Our Neighborhoods Are Not: Discrimination in the Maintenance and Marketing of REO Properties."

Post continues below

"This report offers evidence that banks responsible for peddling unsustainable loans to communities of color and triggering our current foreclosure crisis are continuing to damage those communities by failing to properly maintain and market the properties they own," Shanna L. Smith, president and CEO of the housing group, said in a news release.

Smith said the organization planned to file lawsuits, complaints with the federal government or both. The report did not name specific lenders, but it did praise Freddie Mac for its policies, including superior maintenance of homes and the fact that it provided a toll-free number for neighbors to report problems.

• Squatters: The latest real-estate menace

The investigation also found that:

• Bank-owned properties in minority communities were 82% more likely to have broken windows.
• Bank-owned properties in predominantly white neighborhoods were 32% more likely to be marketed with proper signs than those in predominantly black neighborhoods and 38% more likely to have proper signs than those in Latino neighborhoods.
• Properties in minority neighborhoods were 34% more likely to have trash and debris on the lots than those in white neighborhoods.

The report said that lenders' poor maintenance of homes in minority neighborhoods had exacerbated the effects of the foreclosure crisis in those communities:

Proper REO maintenance is a key factor in both the marketability and value of a home as well as the sustainability and viability of communities. Poor maintenance practices can result in a property remaining vacant for longer periods of time. Poor maintenance also increases the likelihood that a property will be purchased by an investor at a discounted price, rather than by an owner-occupant, because of the cost to rehabilitate the home. Thus, the inferior way in which banks maintain and market their REO properties in communities of color actually changes the character of and serves to degrade the quality of life in these neighborhoods.  #realestateallaround

Judge Signs $25 Billion Foreclosure Settlement

Judge signs $25 billion foreclosure settlement

By Jon Prior

• April 5, 2012 • 6:30pm [Update 1: Adds comment from HUD Secretary Shaun Donovan]
It's official: A federal judge approved the $25 billion robo-signing settlement with the top-five mortgage servicers, according to court documents.
U.S. District Court judge for the District of Columbia Rosemary Collyer signed documents that were made public Thursday.
The agreement with the 49 state attorneys general, the Justice Department and the Department of Housing and Urban Development settles a wide-range of foreclosure abuses from improperly prepared affidavits to allegedly forged notarization signatures and botched modification attempts.
The five servicers, Bank of America ($9.23 0.03%), Wells Fargo ($33.73 -0.15%), JPMorgan Chase ($44.34 -0.07%), Citigroup ($34.79 -0.25%) and Ally Financial will provide $17 billion in different forms of homeowner relief, $5 billion in remediation payments to borrowers and $3 billion in fines to the states.
Because of the way the relief was structured into partial credits, the total amount of principal reduction and other actions could total as high as $40 billion, according to some government estimates.
The deal was originally announced in February after more than one year of negotiations, and it was filed in court in March.
The Association of Mortgage Investors were expected to file a motion to stop the settlement, arguing principal reduction conducted from the settlement would unfairly harm investors in private-label securitizations.
Iowa AG Tom Miller's office, which led the negotiations previously said the banks committed to doing most of the principal write-downs on portfolio loans.
"These consent judgments formalize this historic joint state-federal settlement," Miller tells HousingWire. "This is an important step in paving the way for relief direct relief to consumers across the country, holding the biggest banks accountable, reforming mortgage servicing standards, and giving the green light to the independent monitor."
HUD Secretary Shaun Donovan, who was instrumental in getting California to join the settlement, said he expects up to 2 million homeowners to benefit from the relief.
"From day one the settlement was about helping homeowners, and specifically it was about helping those homeowners who suffered at the hands of the practices of these servicers," Donovan said. "Moreover, while we know that servicing did not cause the mortgage crises it made the problem worse. Moving forward, lenders now have servicing standards that will protect borrowers."    #realestateallaround

FIRST TIME HOME BUYER

SHORT SALE APPROVED!!!!This spacious one story 4 bedroom with 2 1/2 bath features a formal living room,formal dinning room, family room, wet bar, and storage in the back yard. Close to 59 and George Bush Intercontinental Airport. Property is being sold AS-IS........ #realestateallaround

www.har.com/28915048