Of all the close-in neighborhoods, Houston's Tanglewood neighborhood is being the
slowest to begin to emerge from the slump. This is due primarily to the large number
of new homes priced over $2 million that were under construction when the recession
reached Houston. The segment priced under $1 million, primarily property being sold
for a lot, is moving toward stability. This is caused by a relative few properties on the
market, not a large number of sales. Unlike other neighborhoods, the inventory level of
homes priced over $2 million does not improve when using the sales rate of the last six
months. It appears that the upper end in Tanglewood will be a Buyer's market for the
foreseeable future.

In previous posts I have explained how the inventory level is calculated and how to
interpret it. Please read those previous posts for more information.

Shown below is a table showing inventory levels in the Tanglewood neighborhood by
price range using both the Standard Method and the Six Month Method. The Standard
Method uses sales for the past 12 months and the Six Month Method uses sales from
the past six months.

This concludes the series on market performance of Houston's close-in neighborhoods.

TANGLEWOOD

MONTHS OF INVENTORY

October 1, 2009