Houston, TX Market TrendsBETA

For multifamily properties in the metro area, the average asking price was $36,282 per unit for the month. This is down 10.5% from the previous year, and down 3.3% from the end of the fourth quarter of 2011. This month, asking prices for multifamily properties are at their lowest in three years. The previous three-year low was last month at $36,657.

Asking prices for office properties have gone up from the end of last quarter, rising 0.7% to $120.07 per square foot. For the year, asking prices have risen by 0.3%. Asking prices for office properties hit a three-year peak in December 2009 at $124.56 per square foot. In comparison, the current median asking price is down by 41.4%. The lowest asking price over the past three years was $84.00 in January 2006.

The average asking price for industrial properties in the metro area was $58.68 per square foot for the month. This shows a drop of 2.9% year-over-year, and a decline of 1.8% from the end of the fourth quarter of 2011. Asking prices for industrial properties hit a three-year peak in June 2009 at $63.85 per square foot. In comparison, the current median asking price is down by 27.2%. The lowest asking price over the past three years was $46.12 in December 2005.

Asking prices for retail properties rose to $132.23 per square foot, a 0.6% increase compared with the end of the last quarter. Asking prices rose 2% over the past year. Asking prices for retail properties reached a three-year high in December 2008 at $151.44 per square foot. In comparison, the median asking price is now 6.8% lower. On the other hand, the lowest asking price in the past three years was seen in July 2011 at $127.35.

The median sale price per unit for multifamily properties in the metro area has been falling for three straight months, dropping 6.7% during that time. Sale prices rose 7.9% earlier this year during a five-month streak that ended in January. At $44,629, sale prices per unit for multifamily properties have decreased by 6.6% compared to the end of the prior quarter. Sale prices are also down for the last 12 months, showing a 0.5% decrease. The three-year-high in median sale price was set in July 2009 at $48,102. In comparison, the median sale price is now 7.2% lower. However, the current price is 9.4% above the three-year-low of $40,800 set in May 2010.

The median sale price per square foot for retail properties in the metro area has risen 3.7%. Earlier this year, it fell 7.6% during the four-month period ending in January. Sale prices per square foot for retail properties have seen an increase to $93.62, up 0.4% compared with the last quarter. But for the previous 12 months, sale prices have dipped by 6.7%. The highest median sale price over the past three years, which was $131.56, was set in September 2010. In comparison, the current median sale price is down by 28.8%. However, the current price is 9.6% higher than the three-year-low set in June 2011.

Available multifamily properties have fallen for the past seven months month-over-month, a 10.3% decline. The number of multifamily properties available in the Houston Metro Area for the month of March represents a three-year low. Last month marked the previous low. In the past year, the Houston Metro Area has seen a 8% decline in the number of available multifamily properties.

Available office properties for sale have been on the rise for the past two months month-over-month, a 0.6% increase overall. The Houston Metro Area has seen a 6.6% rise in the number of available office properties over the past year.

This is the fifth month of a month-over-month downward trend in available industrial properties in the metro area, a 5.4% decline. This was insufficient to offset the 1.3% climb seen over the past year.

Available retail properties have fallen for the past five months month-over-month, a 5.2% decline. Over the past year, the number of retail properties available has dropped by 1% in the Houston Metro Area.

Demand on LoopNet for multifamily properties spiked in the Houston Metro Area market, rising 8.6% since December 2011, 8.9 percentage points less than the 17.5% increase in the national average. Demand for multifamily properties also increased by 7.3% over the past year. The yearly change ranks the Houston Metro Area twenty-ninth out of the top 48 metros.

Demand on LoopNet for office properties spiked in the Houston Metro Area market, rising 18.7% since December 2011, 3.1 percentage points less than the 21.8% increase in the national average. Demand for office properties also increased by 17.9% over the past year. The yearly change ranks the Houston Metro Area thirty-third out of the top 48 metros.

Demand on LoopNet for industrial properties spiked in the Houston Metro Area market, rising 21.6% since December 2011, 0.8 percentage points less than the 22.4% increase in the national average. Demand for industrial properties also increased by 17.2% over the past year. The yearly change ranks the Houston Metro Area thirty-ninth out of the top 48 metros.

Demand on LoopNet for retail properties spiked in the Houston Metro Area market, rising 17.2% since December 2011, 2.5 percentage points less than the 19.6% increase in the national average. Demand for retail properties also increased by 16.5% over the past year. The yearly change ranks the Houston Metro Area thirty-third out of the top 48 metros.

The available square footage for office properties has been on the rise month-over-month for six consecutive months, increasing 6.3% over that time. This, however, has yet to offset the 2.7% drop seen in the past year. The available square footage for office properties has risen 3.8% versus last quarter. But for the year, square footage is down 2.7%. The rise in supply, combined with the drop in days on market, makes it seem that market conditions are bringing buyers back in.

There has been a 2% increase in square footage available for sale over the past year in the metro area. The rise in supply, combined with the drop in days on market, makes it seem that market conditions are bringing buyers back in.

For the past five months, available square footage for sale has declined month-over-month for retail properties. The square footage available for sale for retail properties in the metro area decreased 3.3% year-over-year and 6.8% compared to the end of the fourth quarter of 2011. The current square footage available for sale reflects a 3.3% fall in the metro area over the past year. The drop in supply and the shorter time on market has caused prices to go up, and may continue to do so. The current market conditions are not favorable for buyers or sellers as prices are falling and sellers still do not seem willing to put more properties on the market due to the poor conditions.

The number of units available for sale in the metro area has fallen consecutively for the past three months for multifamily properties. The number of units available for sale for multifamily properties in the metro area represents a 10% decline over the past year. The drop in both the supply of properties and the average time on market could be a sign that prices are going to move upwards. The current market conditions are not favorable for buyers or sellers as prices are falling and sellers still do not seem willing to put more properties on the market due to the poor conditions.

The time on market for multifamily properties in the Houston Metro Area is down 18.5% from last year, to 133 days. Overall in Texas the time on market has dropped by 13% during the same time period. From November 2009, when the time on market was at its highest, it has fallen 34%.

Office properties in the Houston Metro Area stay on the market for 219 days, which is 18.5% shorter than last year. At the state level, time on market has fallen by 8.4% during the same time period. Compared with April 2009, when time on market was its shortest, it has now gotten 32.5% longer. The time on the market of office properties has now increased 9.3% for the past seven months.

Industrial properties in the Houston Metro Area are turning over more quickly compared to last year, as the time on market dropped 2.9% to 244 days. Overall in Texas the time on market has dropped even further as a percentage, by 11.4%, to 224 during the same time period. From the lowest point, which was set in April 2009, time on market has risen 17.7%. The time that industrial properties stay on the market has risen 16.7% over the past four months.

Over the past year, the time that retail properties stay on the market in the Houston Metro Area has declined 22.2% to 158 days. During the same time period, the time on market for these properties at the state level has fallen even more as a percentage, by 39.1%, to 116. Metro days on market is down 28.1% from its highest point in July 2011.

Asking lease rates for office properties have gone up from the end of last quarter, rising 0.2% to $16.09 per square foot. Asking rates have risen 0.3% on the year. Asking lease rates for office properties reached a three-year high in November 2008 at $17.46 per square foot. In comparison, the median asking price is now 6.1% lower. The lowest asking lease rate in the past three years was $15.13 set in October 2006.

Asking lease rates for industrial properties have risen 1.7% versus the end of last quarter to $6.48 per square foot. For the year, asking rates are up 4.2%. Lease rates for industrial properties hit a three-year peak in October 2008 at $6.63 per square foot. In comparison, the current median asking price is down by 18.1%. The lowest asking lease rate over the past three years was $5.48 in December 2005.

The average asking lease rate for retail properties in the metro area was $14.12 per square foot for the month. This shows a drop of 2.4% year-over-year, and a decline of 1% from the end of the fourth quarter of 2011. Lease rates for retail properties are the lowest they have been in three years. Prior to this, the record three-year low was last month at $14.12.

The number of office spaces for lease has seen a month-over-month rise of 0.5% over two consecutive months. The number of office spaces in the Houston Metro Area hasn't changed over the past year.

This is the ninth month of a month-over-month downward trend in available industrial spaces in the metro area, a 10.4% decline. The number of industrial spaces available in the Houston Metro Area has fallen 9.9% over the past year.

For the past four months, the number of of retail properties for lease has been on the rise month-over-month, increasing 1.5% over that period, but it was not enough to offset the 3.5% decline seen in the past year.

Demand on LoopNet for office properties spiked in the Houston Metro Area market, rising 29.7% since December 2011, one percentage points more than the 28.8% increase in the national average. Demand for office properties also increased by 32.8% over the past year. The yearly change ranks the Houston Metro Area twenty-first out of the top 48 metros.

Demand on LoopNet for industrial properties spiked in the Houston Metro Area market, rising 24% since December 2011, 1.8 percentage points less than the 25.8% increase in the national average. Demand for industrial properties also increased by 29.2% over the past year. The yearly change ranks the Houston Metro Area eighteenth out of the top 48 metros.

Demand on LoopNet for retail properties spiked in the Houston Metro Area market, rising 25.4% since December 2011, 0.1 percentage points more than the 25.3% increase in the national average. Demand for retail properties also increased by 18.7% over the past year. The yearly change ranks the Houston Metro Area thirty-sixth out of the top 48 metros.

For the past six months, square footage available has declined month-over-month for office properties, a 6.9% decrease, but this was not enough to offset the 1.9% climb seen in the past year.

The square footage available in the metro area is in a nine month downward trend month-over-month for industrial properties. The square footage available for industrial properties in the metro area decreased 13.8% year-over-year and 5.4% compared to the end of the fourth quarter of 2011. The square footage available marks a 13.8% decline over the past year.

The available square footage for retail properties has risen 0.7% versus last quarter. But for the year, square footage is down 11.3%. The square footage available for retail properties in the metro area has fallen 11.3% over the past year.

Office properties in the Houston Metro Area are turning over faster than the same time last year, as the days on market slid 6.4% to 158 days. During the same time period, the time on market for these properties at the state level has fallen even more as a percentage, by 10.6%, to 181. Compared with the highest time on market set in September 2009, these properties are now turning over 38.8% faster.

The time on market for industrial properties in the Houston Metro Area has fallen 8.3% from last year, to 224 days. Overall in Texas the time on market has dropped even further as a percentage, by 19%, to 199 during the same time period. Compared with April 2009, when time on market was its shortest, it has now gotten 22.8% longer. The time on the market of industrial properties has been on the rise over the past six months, increasing 14.6%.

The time on market for retail properties in the Houston Metro Area is 246 days, down by 15.9% from last year. Over the same period, days on market in Texas overall have fallen by 11.7%. From its lowest point in April 2009, the number of days on market have increased 32.1%.