Houston Business Journal - by Allison Wollam Reporter

Houston-area home prices reached a seven-month high in April as the area also experienced its 20th consecutive monthly drop in the number of single-family home sales.

April sales of single family homes in Houston totaled 4,200, down 22.5 percent from April 2008, according to statistics released by the Houston Association of Realtors.

Month-end pending sales totaled 3,685 - 25.3 percent lower than last year - suggesting the likelihood of a decline in sales when the May numbers are tallied.

At $194,222, the average sale price of a single-family home dropped 5.8 percent from April 2008, when it was $206,239. However, the figure is at its highest level since last September.

The median price of a single-family home in April was $149,050, unchanged from one year earlier. The national single-family median price reported by the National Association of Realtors is $175,200, illustrating the continued lower cost of living in the Houston market.

Meanwhile, demand for single-family rentals increased again in April, demonstrating that rentals remain a viable option for buyers who may not yet be qualified or comfortable making a home purchase in this economy.

Vicki Fullerton, HAR chairwoman and broker of record at a Houston area real estate office, said the housing industry recovery will be a gradual process, but that Houston continues to demonstrate the strength of its home values compared to other communities around the country where pricing ballooned and then bottomed out.

She noted that many HAR members are reporting growing activity among first-time home buyers who are taking advantage of historically low interest rates and the federal government's $8,000 tax credit.