The following information is from the Texas Association of REALTORS® website intended to educate Texas consumers about the Texas real estate market. It is my intention to share this information with those of you who read my blog - I do not claim authorship or ownership of this material in any way; it was created and compiled by the Texas Association of REALTORS®
Quick facts for Texas REALTORS® to share with consumers
With so many misperceptions created by the national news about the real estate market, you can help Texas consumers understand what’s really going on in your market. Explaining that real estate is local and giving consumers facts about Texas and your area will help alleviate their concerns.
Why Texas is different
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.
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. New data from the U.S. Census Bureau confirms that Texas gained more residents (484,000) between July 2007 and July 2008 than any other state.
Misperceptions created by national news
What they hear......Median sales prices are down as much as 41%
What they don't hear........That 41% number is from California (Nov. 2008 compared to Nov. 2007). Median sales price statewide is flat in Texas for the entire year 2008 compared to 2007*
Average sales prices dropped $115,000 in one year
That number is from Arizona. Average sales price in Texas is unchanged for the entire year 2008 compared to 2007*
Home prices are the lowest in six years and it takes three quarters of a year to sell a house (Reuters, Jan. 2009)
Over the last six years, home prices in Texas have increased 9% in value (median home prices from Dec. 2002 to Dec. 2008) and in that time have averaged less than 7 months, sometimes much less, to sell.
*Source for Texas numbers: Real Estate Center at Texas A&M University
Statewide facts
· 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 (half of all homes sold are priced higher and half are prices lower) increased $8,600.
· Texas has steady home value appreciation. Sales prices in places like California, Florida, Nevada, and Arizona have had rapid rises and drops in values, while Texas prices have remained relatively steady.
· Texas homes are more affordable. Using a ratio of average family income compared to income required to qualify for a loan, the Housing Affordability Index indicates the proportion of the population that can afford to buy the average home sold during a certain time period. The higher the index, the more affordable the housing in that area.
· 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.
· Great rates are available. Mortgage loan rates are the lowest they have been in decades.
· First time buyer incentives. First time home buyers can still qualify for a $7,500 tax credit.
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