Island booked big home sales increase
GALVESTON HOME SALES INCREASED!!!
By Laura Elder
Published February 2, 2011
Galveston home sales increased more than those in all other Texas markets during the fourth quarter last year, a spike some observers called “eye-popping” upon the release of a report Tuesday.
Meanwhile, mainland cities reported significant dips as Texans overall bought fewer homes, according to the quarterly housing report by the Texas Association of Realtors.
Island Realtors credited growing consumer confidence, an easing in home prices and the gradual return of jobs at the University of Texas Medical Branch, which had laid off thousands after Hurricane Ike struck in September 2008.
More distance observers said the numbers are encouraging but likely look so good only in comparison to those recorded when the island still was reeling from the double whammy of a hurricane and a general meltdown of U.S. financial systems.
Conversely to Galveston, other cities saw numbers drop in the fourth quarter of 2010 when compared with the same period of 2009, a heavily government-stimulated quarter with the federal first-time homebuyer tax credit, said Jim Gaines, an economist with the Texas Real Estate Center at Texas A&M University.
The center compiles statistics from 47 multiple listing services in markets across the state to formulate the report for the association.
Realtors sold 212 houses, condominiums and town homes in Galveston in the fourth quarter 2010, compared to 164 during the same period a year before, marking an increase of nearly 30 percent, according to the report.
In Galveston, the median home price increased 31 percent in the fourth quarter last year — to $172,000 from $131,000 a year ago, according to the report. The median price is the figure at which half the homes sold for more and half for less.
By comparison, the Bay Area market, which includes Clear Lake Shores, Dickinson, Friendswood, Kemah, League City, Seabrook and Webster, saw a 15 percent decline in the number of home sales.
Realtors sold 1,092 houses in the Bay Area market compared with 1,286 the same period the year before, according to the report. But the Bay Area market saw a 3 percent increase in the median price — to $155,300 from $150,700.
The island’s performance was not buoyed by condominium auctions in which developers last year attempted to unload excess inventory. Condos sold in auctions aren’t included in multiple listing services, island Realtors said. Also, most of the larger auctions last year occurred before the fourth quarter.
With the Republicans taking control of the Legislature in November, consumers became more confident, said Pamela Gabriel, president of the Galveston Association of Realtors. Also, sellers have eased their prices in a buyer’s market, Gabriel said.
“They’re just taking advantage of lower prices,” Gabriel said.
Though still strict, mortgage lending is easing somewhat, she said.
In Texas last year, Realtors sold 202,916 homes, a 5 percent decline compared with 2009. The median price was $147,600, a 1 percent increase compared to 2009.
“It’s clear Texas was not immune to the economic downturn in 2010 and that showed in the number of houses sold,” said Dwight Hale, 2011 chairman of the Texas Association of Realtors. “However, it’s encouraging to see that Texas real estate held its value so well during the year, which bodes well for homeowners as the recovery continues.”
Quarterly numbers are only a snapshot in time, John Gormley, a spokesman for the Texas Association of Realtors, said.
Although the island’s numbers look good now because the market was depressed in 2009, the news still is encouraging, Gormley said.
“The coast was still trying to rebound from Hurricane Ike in 2009; it helps to explain the eye-popping percentage,” Gormley said. “Now, it’s headed in the right direction, which is very important.”
Michelle Robach
Avalar Austin Realty
512-965-3304
