2010 Good News on the Houston Homefront

With less than one month to go before the 2010 Homebuyers’ Tax Credit expires on April 30* –there are encouraging economic signs on the Houston home front. Buying a home would be a good investment. Why?

1.       Houston population growth in 2009 and

2.     Unemployment rates are declining and

3.     Home sales in Houston [see chart below] show value retention and ample supply.

Houston Population Growth:

Houston and Dallas–Fort Worth received the largest influx of residents in the country in 2009, according to the U.S. Census Bureau.

Houston had the second-highest population growth last year, with 140,784 people pouring into the metro area, a 2.5 percent increase that pushed the region’s total population to 5.86 million.  Dallas – Fort Worth [two large metros combined] have 6.45 million people as of July 1, 2009 and added 146,530 people. It marked a 2.3 percent increase from 2008.

Houston and Dallas-Fort Worth grew in population in 2009 more than any other region in the nation. Population growth plays a large factor in homes sales and home value retention.

Houston has the sixth-highest population in the United States, according to the U.S. Census Bureau.

Houston Employment and Unemployment:

The Houston-Sugar Land-Baytown Metropolitan Statistical Area gained 10,300 jobs from January to February, according to estimates released today by the Texas Workforce Commission. That’s the largest one-month gain since November ’08.

Unemployment receded from 8.8 percent in January to 8.5 percent in February—not a statistically significant movement, but encouraging nonetheless. Unemployment here remained well below the 10.4 percent national rate. (Rates are not seasonally adjusted.)

The number of initial unemployment insurance claims in the 13-county Gulf Coast Workforce Development Area in February was 17 percent less than in February ’09, Workforce Solutions reports. While we’ve seen month-to-month ups and downs, the moving three-month average for initial claims has declined every month since May ’09, and now stands 19 percent below that peak—definitely a movement in the right direction.

Employment is the single most important factor to rising home sales and we see Houston getter stronger as we move through 2010.

Houston compared to other Texas Cities:

Houston experienced more home sales than any other city in Texas including Dallas-Fort Worth combined, Houston experienced 370 more sales than Dallas-Fort Worth. The chart below gives a year-over-year comparison of Texas cities. Houston has a balanced supply of homes on the market, value retention and sales have been trending toward positive territory since February 2009.

Here is how select Texas cities fared in February (data current as of March 25, 2010):

 

 

Sales

Change from
Last Year

Median
Price

Change from
Last Year

Months'
Inventory

Austin

1,276

up 7%

$182,000

down 3%

6.2

Dallas

2,707

down 9%

$149,200

up 1% 

6.1

Fort Bend

510

down 7%

$188,700

up 8% 

4.8

Fort Worth

538

up 5%

$106,000

down 3%

6.5

Houston

3,615

down 4%

$146,600

up 6%

6.6

Longview-Marshall

116

down 12%

$120,000

up 1%

8.9

Odessa

67

up 26%

$123,100

down 5%

5.8

San Antonio

1,239

up 7% 

$140,700

down 1%

7.8

Temple-Belton

94

down 10% 

$110,800

down 11%

6.7

Victoria

61

up 33%

$109,200

down 23% 

6.6

Texas

13,064

down 2%

$141,100

up 2%

6.9

 

 Summary:

These encouraging economic indicators, along with the 2010 Homebuyers Tax Credit and favorable interest rates make the next 30 days a prime time to invest in a home in the Houston Metropolitan area. 
*2010 Homebuyers Tax Credit – home buyers must have a binding written contract in place by April 30, 2010 with a closing date no later than June 30, 2010.- go to http://www.realtor.org/home_buyers_and_sellers/extended_home_buyer_tax_credit_how_to for details],