The issue of Houston distressed properties has somewhat lightened up, according to real estate market analysts, if April home sales and residential construction permits are to be used as parameters. The statistics for April is being seen by most industry observers as signs that the city housing market is on the rebound.
According to the Houston Association of Realtors, housing industry numbers for April 2010 recorded a 26.7% rise in residential sales, with more than six thousands homes sold during the month. This followed a significant jump in home sales in March which encouraged analysts to predict a month ago that subsequent periods will show significant decreases in the number of distressed properties in Texas.
Building permits for residences in the city area also climbed in April by 20%, giving further support to analysts’ declaration that selling and buying distressed homes will soon become a minor percentage in the residential real estate market. Houses priced at half a million dollars or over also recorded a 53% increase in sales in April when compared with the same month of 2009.
The number of Houston distressed properties is expected to further decline in the coming months as a result of the decline in mortgage rates. Currently, rates are pegged at 4.84%, the lowest level it has achieved so far in 2010. Analysts have also stated that the improvement is not just in Houston, but in national levels as well.
However, despite the optimistic view, there are also those who believe that the improved numbers are misleading since increased sales and permits can be largely attributed to the tax credit provided by the federal government.
Some industry observers have warned optimists that the general economy is still on shaky ground. They stated that unemployment rates remain high and the situation will be further aggravated by the oil spill, with jobs in the energy industry of Houston expected to suffer from the BP incident. In addition, a big number of households are still getting foreclosed and borrowers are still behind in their mortgage payments.
The debate on whether the issue of Houston distressed properties is abating has its supporters and critics. However, majority of market analysts believe that improved sales records cannot be bad for the local housing industry no matter how temporary it is.
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