The nationwide recession and credit crisis has left many cities around the US struggling to keep their heads above water, and Houston is no exception.

Industry analysts have seen Houston-area home sales continue to drop and the housing market slip further into the hole of the recession. In fact, sales of Houston-area homes have dropped for 21 straight months, and it looks as if this trend will continue for the second half of 2009.

A bright spot, however, is the fact that home prices are holding their own. For example, the median price for a single-family home in Houston this year is $149,050, compared with $150,000 from a year ago.

It is with this knowledge that industry analysts are positive when speaking of the future of Houston’s housing market. Where other cities in the country have seen home prices tumble, Houston has remained strong and steady, thanks in part to the fact that the housing boom and inflated housing prices never took over.

In addition, foreclosure sales continue to decline, indicating an improvement in the market. For example, foreclosure sales made up about 25 percent of all single-family home sales in April, which is a decline from 34 percent in January.

Houston’s Struggles

Houston is having a tough year. As the demand for oil decreases due to the nation’s financial crisis, the energy capital of the US is certainly going to be hit hard.

In fact, Houston expects to lose about 60,000 jobs over the next two years as a direct result of the lack of demand for oil.

This news, of course, doesn’t bode well for the economy of Houston or home sales, for that matter. A beacon of light for Houston are the historically low interest rates and first-time home buyer tax credits which are luring buyers off the sidelines and into the market.