Texas Real Estate Market Looks Promising in 2014
There are several factors that have led industry experts to see a promising real estate market in the State of Texas in 2014. Here is a brief overview of these factors:
Increase in Jobs
Across the US, it has been noted that the property market recovers the most where general economic conditions are favorable, job growth being the most important factor. That is why many cities in Texas have experienced exponential housing recoveries by maintaining low unemployment levels, and the trend is likely to follow this year as well.
Rise in Investor Activity in the Sun Belt
Real estate developers and investors are returning to the ‘smile investment philosophy’. The ‘smile’ starts from developers and investors looking at prospects in cities in the Northeast, moving south towards Texas and Florida, and then coming back to the Northwest. Thus, the areas that fall in this route are likely to see the greatest real estate activity.
A Recovering Inventory
At the start of the year, inventory levels in the state were low. Based on the sales made in the latter part of 2013, the current residential properties can only satisfy buyers for a couple of months. A favorable inventory, on the other hand, is one that is closer to six months. This is what makes Texas predominately a seller’s market. And this has also given rise to greater agent activity.
Buyers are lining up by the dozens and are patiently waiting for a property to open up for sale. However, inventory levels are expected to rise in the next four months. Meanwhile, onlookers are suggesting that this will be the last year that low inventory will support property prices. Distressed inventory is drying up and sellers are looking at better profits than they have in years. If you have a property to sell, now is the time to get the price you were waiting for.
Low Mortgage Rates
Finally, low mortgage rates have also contributed to the strong real estate market in the state, especially in Houston where home sales reached an all-time high in 2013. A significant chunk of these sales were single-family homes. This signals yet another trend for the coming year, i.e. the fall in the market for multi-family apartment buildings. These surged during the recession, when demand for apartments during rose, along with a notable homeowner to renter transition.
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