In an earlier post, I reported that single family home sales in Houston for September 2009 increased 32% over September 2008. September 2008 was the month in which Hurricane Ike hit and the month in which the recession found Houston. Because of that, it is much more important that single family home sale for the third quarter increased 1.5% over the same period last year.

Many analysts attribute the increased sales activity solely to the new home buyer tax credit. This could hardly be the case, sales improved in all price ranges except for over $2 million. The largest increase in sales was in the $750,000 to $1 million range, which increased 15.7% over the third quarter of 2008. Anyone with income to qualify for a $750,000 home will not qualify for the first time home buyer tax credit.

Even the price range of $1 million to $2 million was level with last year. Homes over $2 million continue to languish with more than a 4 year inventory at current rates of sales. Homes in this category in 2009 were down more than 50% in all geographic areas of the Houston MLS area.