Are we there yet? Experts are reluctant to say it. But it’s time to change our thinking about the real estate market being bad.

The dark days are over. Houston realty has survived another down period — a plague of more than two years of softer sales and disappointing prices.

Maybe this is just a brief break in the clouds and the storms will start again soon. Anything can happen.

But we need to adjust our thinking. The fire sale is over. We are no longer buying or selling homes in a distressed market. Unless you’re very lucky, low-ball offers will get you nowhere.

The Houston residential real estate market is back. A total of 6,200 Houston-area properties sold in April, up 26.7 percent from April of last year, the Houston Association of Realtors reported. Home sales were up in March, too. More evidence: Residential building permits in Houston are up 20 percent over last year’s pace. Sales of homes priced at $500,000 or more were up 53 percent in April 2010 over April of 2009.

Mortgage rates have dropped to their lowest point of the year — 4.84 percent, according to Freddie Mac’s latest survey.

The positive news is not just local. The National Association of Realtors reports national increases in sales and declines in inventories of homes for sale. Home builder confidence is at its highest point since August 2007, according to an index produced by the National Association of Home Builders.

So why are the experts unwilling to declare a full recovery?

For one thing, the home sales have been boosted by a federal tax credit that expired at the end of April. Can home sales continue to be strong without the tax credit? It may take a few months before the final verdict is in.

The fundamentals of the economy are still questionable, even in Houston. Job growth is meager and the BP oil spill in the Gulf of Mexico is a threat to the jobs in Houston’s energy businesses. Many home owners are still losing their homes to foreclosure or falling behind on making payments.

So the market is still shaded gray — nothing is completely black and white. It certainly appears the housing market has recovered, but not everybody agrees.

“I wouldn’t say we are out of the woods yet,” says Evert Crawford of Houston-based Crawford Realty Advisors. “But there are signs that things are improving.”
 
 Royalton Condo Reports Sales Uptick

 The Royalton at River Oaks condominium tower is topped by a large bright ornament that resembles of Queen Elizabeth’s tiera.

The 33-story building, located at 3333 Allen Parkway, started off as a tower of apartment rentals. The tower’s developers broke ground about a month after the Sept. 11, 2001 attacks — unlike a lot of developers that cancelled projects during the economic turmoil that followed 9-11.

After opening as a rental building, the tower was converted to condominiums for sale a few years later.

It takes a long time to sell 250 condo units, especially when the economy goes south. But the end is in sight — finally. The tower could be completely sold out in 2011, or even sooner. During the first quarter, the building had $5 million in sales. Selling units priced from $200,000 to over $1 million, the building has achieved an average sales price of $230 per square foot.
 
Cotton Properties, which is marketing the Royalton, is projecting that 30 to 35 units in the project will be sold this year, raking in a total of $20 million.
 
A big plus for the building — it’s within walking distance of the new Whole Foods, which is being built at the northeast corner of Waugh Drive and West Dallas.
 
 Fama Added to Expanding Roster at Daugherty
 
Another sign that the Houston real estate market is coming back — some real estate companies are adding staff.
 
John Daugherty Realtors plans to hire a number of agents this year, says company founder John Daugherty, who started the firm in Houston in 1966.
 
Daugherty, which specializes in the upper-end market, says he will add about 30 new realty agents this year, increasing the firm to 200 agents.
 
Perhaps the most important addition to the staff is Cheri Fama, who was just hired as Daugherty’s executive vice president and chief operating officer. Fama has been senior vice president of Heritage Texas Properties for years and she has a reputation as a top-notch manager.
 
Fama has managed residential marketing for resale homes and new construction, including downtown sales and condo buildings.
 
Daugherty says the residential market is bouncing back and he’s seen an upward trend since late in 2009. Daugherty believes the upper end market is a key leading indicator for where the residential market is going — and sales of upscale homes have definitely been improving.
 
“The high-end of the market is the first to come back,” Daugherty says.
 
 Ralph Bivins, former president of the National Association of Real Estate Editors, is editor-in-chief of RealtyNewsReport.com.