Several factors point to a continuation of the gradual economic recovery in the Houston area, according to a report from MetroStudy, including positive job growth numbers and improving housing starts.
David Jarvis, director of MetroStudy's Houston division, said these gains can be attributed in part to the region's public policy, which differentiate the area from many others across the country.
"The Houston market continues to face fewer market obstacles than most U.S. markets. Texas's pro-growth policies and business friendly environment will continue to benefit local housing markets and allow for 2011 to show moderate growth," he said.
The first new increase in housing starts since the recession was seen in 2010, MetroStudy reported, a 1.1 percent rise over 2009 figures, as well as a small increase – 13,000 – in the number of available jobs, though the previous year's losses were still much larger, topping out at more than 100,000.
Staying abreast of general economic development is important for both businesses expecting to be involved in Houston's property market and prospective homeowners, experts say.
Report: Houston property market boosted by housing starts and job growth
Texas home sales fall below ’09 levels
Data from the Texas Association of Realtors (http://www NULL.texasrealtors NULL.com/public/MR/About/Media/News/NR2011-02-01 NULL.cfm) finds that the number of homes sold in the state last year was down from 2009.
The Texas Quarterly Housing Report finds that there were just under 203,000 homes sold in the state last year, down roughly 5 percent from the previous year. However, much as has been the case in the Houston real estate market, prices remained strong, gaining 1 percent over the same time period.
"It's clear Texas was not immune to the economic downturn in 2010 and that showed in the number of homes sold. However, it's encouraging to see that Texas real estate held its value so well during the year, which bodes well for homeowners as the recovery continues," said Dwight Hale, 2011 chairman of the Texas Association of Realtors.
The largest reason for the drop was the data from the fourth quarter of last year, which fell 18.9 percent below 2009 levels. However, analysts said the homebuyer tax credit skewed those results, increasing sales at the end of 2009, and pulling forward others into the first half of 2010.
Overall, the prices for Houston homes have remained higher than the state as a whole. According to the Houston Association of Realtors, the median home price in December was $157,500, roughly 7 percent above the $147,400 state-wide median price last year.
Nationwide homeownership levels fall
A government report shows that fewer Americans owned their own home in the fourth quarter of the year than any period since 1998.
According to the Commerce Department (http://www NULL.census NULL.gov/hhes/www/housing/hvs/qtr410/files/q410press NULL.pdf) the national homeownership rate dropped to 66.5 percent in the third quarter of the year, down from 67.2 percent a year earlier. It's also down significantly from the mark of 69.2 percent reached during the height of the housing boom in 2004.
Analysts say the decline may pave the way for a fundamental change in the way people view rentals.
"Americans are going through a fundamental transition in the way they look at rental housing," Greg Kraus, senior director of acquisitions with Invesco Real Estate, told the Wall Street Journal. "Historically, there's almost been a subtle disdain in many markets if you're a renter. That stigma is going to go away."
Homeownership levels in the government's South region, which includes Houston homes, came in at 68.5 percent, higher than the national average but down from 69.1 percent in the fourth quarter of 2009.
Despite the drop, recent reports show many people are still looking to buy a home. A recent survey by the National Association of Realtors found that more than 70 percent of renters felt that owning a home made more long-term financial sense.
New Master Planned Developments coming to Spring
In the Houston Chronicle today there was an article which shows faith in the continued steady housing market for Spring and The Woodlands. In the second quarter of 2011, a developer, Coventry Development Corp. has plans to start the building of an 1,800-acre master-planned community in north Harris County called Springwoods Village (http://www NULL.springwoodsvillage NULL.com/).
Over the next several years, as many as 5,000 homes are expected to be built, in addition to 8.5 million square feet of commercial office space and 1.2 million square feet of retail space. Depending on the market conditions the community is expected to take 15-20 years to complete development.
The developer aims to build a community where residents can live close to their jobs, cutting down highway commutes. Springwoods Village will be located about 30 miles north of downtown Houston, in Spring, just south of The Woodlands.
Tax Credit being offered on FHA Loans to First Time Home Buyers
Have you heard about the tax credit recently created to help first time home buyers or buyers that have not owned a home in over 3 years. This is only on FHA (Federal Housing Administration) loans and according to the secretary of H.U.D., home buyers will be allowed to use the $8,000 first-time homebuyer tax credit towards their DOWN PAYMENT on purchases financed by FHA loans. FHA will allow approved lenders, nonprofits, and government agencies to advance the funds in the form of interest free bridge loans that buyers would use for down payments. Buyers would repay the loans after they receive their tax refunds. More information is to come from FHA soon.
If you are interested in this new tax credit or have questions regarding real estate send me a email/comment and I will work to answer your question.
Have you heard about the upcoming new Bill that offers a Tax Credit for First Time Home Buyers?
The government has submitted a new program which offers $7,500 tax credit for first-time home buyers. While this is one of the most talked about measures in the upcoming new bill, it is also the most confusing. Simply, the government has created a monetary incentive, a tax credit for first-time home buyers, as a tool to stimulate the housing market. The tax credit will be 10% of the purchase price of a home, up to a maximum of $7,500. That means if the home costs more than $75,000 first-time home buyers (anyone who hasn’t owned a home in the last three (3) years) will receive the full $7,500 tax credit, this is not a new idea. Back in the 1970′s the government offered a similar program with one major difference: this new tax credit will have to be paid back over a period of 15 years, beginning two years after the credit is taken. Basically, the government is providing first time home buyers an interest-free loan up to $7,500 to help them buy a home! If the home owner happens to sell the home before the 15 years is up, the remaining credit is due upon sale from the profit of the home sale. However, and here’s the best part, if there is insufficient profit, after the sale of the home, then the remaining credit due is forgiven. You really have nothing to lose. There are, of course, income limits to qualify for this incentive. With this new tax credit and down payment assistance, you are finally in the driver’s seat in a buyer’s market with some of the best interest rates to date. Let me help you find your dream home.
Eco-Friendly “Green” Homes
How knowledgable are you when it comes to your home and the environment? Should you decide to build a home you may find that your builder is among many that are now using eco-friendly products in the home building process. Building green can be costly, but home buyers are willing to spend this knowing that they are helping to save the environment along with the anticipation to recover some of these expenses through savings on energy and water bills.
If asked, most people want to go green, but how far are they willing to go?. There has to be a compromise somewhere between what’s ‘over the edge’ green and what can get be placed in the housing market so that people can have a home that’s environmentally safe and attractive.
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