Houston Ranks Among Most Affordable U.S. Cities

• Despite steady increases in Houston home prices, they remain among the most affordable in the nation, according to a new report.

• Online residential brokerage firm ZipRealty examined median home sales prices in 30 metro areas and estimated family income data from the Department of Housing & Urban Development (HUD) to generate a ranking based on affordability (see http://www.ziprealty.com/blog/most-affordable-housing-markets-2014)

• Houston ranked eighth, with a median sales price of $185,00 in February and an estimated family income of $66,000 in 2014. Houston’s affordability index of 2.8 means the median price house is 2.8 times the region’s estimated family income. The median sales prices used in the study represents single-family homes, townhomes and condos.

• Locations east of the Rockies were most affordable, with Chicago leading the list, followed by Philadelphia and Orlando, ZipRealty concluded. The most expensive housing markets are in California. Homes in Orange Countysell for 6.4 times the 2014 estimated family income, while homes in the Bay Area go for 5.7 times the average family income.

The Risky Off-MLS or “Pocket Listing”• Our current strong market has resulted in the growing use of off-MLS or so-called

“pocket listings.”

• This current love affair by some with pocket listings, meaning property listed with a REALTOR® who in turn does not place it on the MLS, can invite trouble. In fact, this issue of pocket listing may be the greatest legal risk facing REALTORS® today. Why?  Once you have taken a listing, you have created the highest level of trust in our legal system: the fiduciary relationship, a “special relationship of trust.” A relationship created to help sell a property on the market.

• Market access is best provided by the MLS, with listings exposed to other brokers, agents and their buyers, as well as listings routed to public websites for consumer access and review, versus unknown and minimal exposure from a pocket listing. No jury would find that you fulfilled your fiduciary duties by choosing to sell a property under a pocket listing that results in limited exposure and limited buyers. The shortcut, the quick sale, exposes you to liability and reduces the property’s exposure to the market.

• One might even argue that the effect of a pocket listing is to deny certain people access to the purchase of property. If only certain buyers are allowed to bid on the property, then the REALTOR® runs the risk of being party to a discriminating act, even if unintentional. For more information, see http://bit.ly/1nmUBgY

Weekly HAR Market StatApril reporting brings hope as “For Sale” signs begin to brighten the housing landscape. Along with that hope is uncertainty about some regions' year-over-year sales and inventory figures. Nevertheless, rates are still lower than most years in modern memory, there's proof of an improving mix of properties for sale on the national landscape and upward price pressure continues to motivate potential home buyers. Watch listing activity closely for more hints as to what may be unearthed next.

In the Houston region, for the week ending April 6: • New Listings decreased 1.3% to 2,692

• Pending Sales increased 21.2% to 2,204• Closed Sales increased 21.6% to 1,484

Questions? 713-629-1900 ext. 6

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