The real estate market in West Texas continues to thrive while housing sales in other areas of the country are slow to recover from the national economic crisis. For purchasers ready to buy in 2012, West Texas offers a stable job market and a better long-term outlook than those regions harder hit by recent economic woes.
If current predictions of the mortgage industry hold true, mortgage interest rates should remain relatively low in 2012. The trick is to find an affordable home where settling in for the long term is both attractive and feasible.
Buying a vacation home in West Texas is a great option for those that love the area, but aren’t able to commit to living in the region year round. Home values suggest that this is a sound investment opportunity and can be a perfect way to generate rental income when not being used. Median home prices, as of January 2012, fit comfortably with the $150,000 to $200,000 range.
Positive Economic Indicators
According to a January 6, 2012 economic outlook report by Texas Comptroller Susan Combs, growth in employment and an upturn in state sales tax revenue indicate that the Lone Star State is emerging from the recession. More people have moved to Texas during the first decade of the 21st century than to any other state — 4.3 million — indicating robust growth. Additionally, Texas industry has expanded its Gross State Product by 2.8 percent since 2010.
The state gained 226,000 new jobs between November 2010 and November 2011 and the unemployment rate dropped from 8.4 percent in October of 2011 to just 8.1 percent in November 2012, maintaining its 59 consecutive month record of meeting or beating the national unemployment rate.
With more jobs available, growth in state exports and strong purchasing indicators, Texas remains a popular choice for families wishing to purchase homes in a prosperous climate. West Texas, with all it has to offer growing families and retirees alike, represents fertile ground for planting the seeds of a secure economic future.
Texas Housing Market
Texas Comptroller Combs asserts that the state has been largely sheltered from the national real estate market collapse and subsequent home foreclosure crisis. Residential property values have not undergone the extreme ups and downs that they have in most other U.S. states over the past few years, indicating that homes in this state represent a more secure investment.
The number of Texas homes sold in November 2011 was greater by 8 percent than total home sales in November 2010, and the number of building permits issued for new construction statewide for the year ending in November 2011 was 50 percent greater than the total issued in the previous year.
The overall foreclosure rate for Lone Star State properties at the end of 2011 was one in every 961 mortgages, compared to one in 211 for California and one in 175 for Nevada. This comparatively low foreclosure ratio is due in part to a strong Texan economy and in part to a state law that prohibits homeowners from borrowing more than 80 percent of their property’s value.
So, whether you’re ready to take the plunge and move to West Texas or you just want a “home away from home,” buying a home in West Texas is a great choice for savvy home buyers in 2012.
About the Author: Over more than 15 years, MortgageLoan.com has built a reputation as the premier online publication for consumer-focused news and information for consumers who are looking to buy or refinance a home.