According to the latest Texas Quarterly Housing Report, the volume of real estate sales in Texas increased for the third quarter in a row. These conditions are not being reflected all across the nation, but it would appear that the Texas market is on a slight upswing. The Texas Quarterly Housing Report is issued four times a year by the Texas Association of REALTORS® with MLS data compiled and analyzed by the Real Estate Center at our very own Texas A&M University.
The period analyzed and covered in this report is April through June 2010, with results having been released very recently. The study found that sales of existing single-family homes were up 14% compared to the same quarter in 2009. Surprisingly, the median price of homes remained relatively the same at $149,200; this is excellent news for sellers who are worried about putting their home on the market during these uncertain times. The growing strength of the Texas real estate market on the whole is demonstrated through the results of this study; it is encouraging to see this trend continue through 2010, and will be exciting to see the nation’s real estate market follow suit.
Two main factors contributing to the Texas market faring so well in comparison to the rest of the nation have to do with our job growth and our lower home prices. To begin with, Texas has reported unparalleled job growth in 2010. While our state and country are still in the midst of a recession, renewed job growth in the state is allowing homeseekers the financial stability needed to purchase a home. Here in College Station and Bryan specifically, Texas A&M University’s presence (a government employer) has equaled relative job stability for many of our local community members. This also contributes to the lower foreclosure rates we are seeing in the Brazos Valley. The second factor spurring Texas home sales is Texas’ lower-than-national-average housing cost. It is a well-known fact that real estate and land prices are considerably less expensive in Texas than in other areas of the nation. Another study from the Real Estate Center at Texas A&M University explains that this is why our market is faring better than those of other states. It also suggests that this is why the state’s economy is expected to continue to do better than the rest of the nation in the coming months.
In Houston and Dallas, residents spend just 18.6% of their income on shelter. Compare that to San Diego, CA, where that number is an estimated 30.8%. When Texans are able to spend more on non-housing goods and services, the state’s economy is strengthened and more people attracted. Chief Economist Mark Doutzer at the TAMU Real Estate Center notes, “These results illustrate one of the key reasons the Texas economy outperforms the United States in terms of job growth almost every year. The fact that Texans pay less of their income for housing means they have more to spend on other things that add to the overall quality of life. Texas offers a lower cost of living than many places in the United States. This allows Texas employers to be able to attract workers at a reasonable wage rate that allows them to compete successfully in the global economy.”
If you are a College Station or Bryan resident interested in putting your home on the market in light of the recent fact that our median price of homes has remained stable over the past year, please feel free to call me so that I can discuss your options and requests. If you are a citizen of another state interested in takind advantage of our fantastic (but less expensive) real estate and our steady job growth, I’ll be happy to aid you in all of your relocation needs. Call me today!
Clay Lee – Realtor
Century 21 Beal, Inc.
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