Report: Texas Home Sales Down in Third Quarter

According to the Texas Quarterly Housing Report released earlier this month, real estate sales in the Lone Star State decreased in the third quarter of 2010 but were flat year-to-date. The ""Texas Association of Realtors"":http://www.texasrealestate.com/ attributes the statistics to an early peak in the market due to the federal homebuyer tax credits.

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""If you view these results only within the third quarter, they appear discouraging,"" said Bill Jones, chairman of the Texas Association of Realtors. ""However, the expiration of homebuyer tax credits distorts the picture.""

Jones explained, ""When evaluated on a broader year-to-date basis, it becomes clear the market is performing consistently compared to 2009. It's also encouraging to see how Texas real estate is holding its value.""

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While sales of existing single-family homes in the state decreased 20 percent during July through September 2010 compared to last year, year-to-date home sales are down less than one percent. The median home price in Texas remained virtually unchanged in Q3 at $152,000. Inventory of Texas homes moved up to eight months.

""This is a difficult time to compare statistics because we're comparing two very different markets-one with substantial support from the federal government in the form of tax credits and one without that support,"" said Jim Gaines, Ph.D., an economist with the ""Real Estate Center at Texas A&M University"":http://recenter.tamu.edu/.

""Year-to-date sales volume is a more meaningful figure to evaluate the current condition, and that is still on pace with 2009,"" Gaines added. ""Although it's hard to predict where the market is headed, if you look at the long-term trends that determine real estate growth, Texas is in a good position. As a state, we are still adding population and we've experienced positive employment growth since almost the first of the year, which is key to rejuvenating our economy overall.""

The Texas Quarterly Housing Report is issued by the Texas Association of Realtors. Data for single-family home sales is compiled and analyzed by the Real Estate Center at Texas A&M University using statistics from 47 multiple listing services in markets throughout the state.