Texas Real Estate | What You Should Know
The Truth About Texas Real Estate
With so many misperceptions created by the national news about the real estate market, our Texas Real Estate Association, the MetroTex Association, has published an update on what’s really going on in our market. It is important to know that real estate is local and knowing the facts about our area will help alleviate your concerns.
Strong, diverse economy: Texas is strong in industries that are still growing (such as professional & business services, education & health services, government) and has the second largest economy in the nation by GDP according to the U.S. Bureau of Economic Analysis.
Why Texas is different
- Steady job growth: According to the U.S. Bureau of Labor and Statistics, Texas added 153,700 jobs (1.5% increase in employment) from December 2007 to December 2008, while during the same time the national unemployment rate rose 2.3%.
- Top state to relocate: According to Allied Van Lines’ 41st Annual Magnet States Report, Texas is the No. 1 destination state for residential relocations for the 4th year in a row. Furthermore, new data from the U.S. Census Bureau confirms that Texas gained more residents between 2007-2008 than any other state.
- Texas real estate remains a strong long-term investment. The average home sales price in Texas has increased $15,600 from December 2004 to December 2008. Over the same four years, median sales prices increased $8,600.
- Texas has a balanced market. Statewide, there was 6.4-month inventory of homes for sale at the end of 2008. Economists at the Real Estate Center at Texas A&M say that about 6 ½ months of inventory is a balanced market, where homes are being sold and prices continue to increase at a moderate pace.
- Texas homes have appreciated steadily. Home-price appreciation in Texas has not fallen below zero in the last 16 years.
- Texas has steady home value appreciation. Sales prices in California, Florida, Nevada, and Arizona have had rapid rises and drops in values. Meanwhile, Texas prices have remained relatively steady.
- Most borrowers are approved. According to a report by the National Association of REALTORS®, 91% of buyers in Texas were NOT rejected by lenders last year.
- Finally, first time buyers qualify for $8,000 tax credit. This doesn’t have to be repaid if they remain in the home for at least three years.