In the midst of an AVERAGE real estate decline, mortgage lenders and servicers in the media, foreclosures on the rise it has come to my attention that the media in my opinion might spend too much time on the AVERAGE.
It is unfortunate that many parts of the nation are seeing a decline in home sales and many times a decline in value. However, what is this doing to the parts of the nation that are still strong? I don't want to bash the media, I just wanted to dispel the MYTH that ALL parts of the nation are experiencing a Real Estate Bubble.
In Houston right now, we are still seeing a healthy market. In The Woodlands just north of town we are seeing a 4.5 month of inventory which is well within the range of a seller's market. The average median sale price in Houston is up 5% even though we are seeing an 8% decline in new construction sales over 2006, which I might say was amazingly in March of last year. Job Growth is up and still climbing. The Port of Houston alone has created nearly 56,000 jobs since 2000.
I had a prospective seller AND buyer approach me yesterday and said "How would it affect me to buy/sell seeing as it is a buyers market right now?" This really sort of disturbed me. The media has focused on the Bubble as a whole nation. I would like to take a minute to explain why Houston is a little different.
- Average appreciation on a home in the Houston and Surrounding areas is typically 3-5% per year. Sometimes not even that. We could see this as a negative but let's flip that. The areas most affected by the "Bubble" typically have a significantly higher appreciation which allows for more room to decline as well. I refer to it as the pendulum-to the left, to the right, back to the middle.
- Job Growth-Texas as a whole has had more people moving in than moving out the last year and a half. There are many job openings and business growth. This really goes back to supply and demand. Our businesses are still growing and bringing employees and are expected to do so atleast through 2010 according to the Texas Real Estate Center at A&M.
- More Reasonable Home Prices- Houston has always had more affordable homes than many parts of the nation. On the North side of Town you can find homes, great homes, under $80 per square foot. That's Phenomenal compared to many States.
Houston seems to follow in different footsteps. I wanted to let consumers know that even though we see the media talking about the bubble, there are several parts of the nation still doing well. It is best to contact a Professional Real Estate Agent that services the area you are interested in for specific information.
So let's hear it agents, what other parts of the nation are doing well?
