This year will be the second-best year ever for the Texas housing market, according to researchers at the Real Estate Center at Texas A&M University.
In a report by the center, economist Dr. Jim Gaines said, “Last year was the second best year in the state of Texas for home sales volume. It was second only to 2006, which was at the height of the housing boom and all the easy financing. And 2013 wasn’t that far off from that. This is going to become the new second best year ever. We have having a really terrific year.”
Almost 218,000 homes have been sold in Texas so far this year; according to the Real Estate Center, that is one percent more than were sold this time last year.
One potential issue pointed out by the researchers is that incomes in the state have not been rising at the same rate of home prices. Gaines said, “As our prices have been going up progressively here in Texas, incomes haven’t been going up at the same pace percentage-wise.”
The economist was quick to point out, however, that Texas’ “prosperity is, in general, still continuing.”
While Texas’ housing market is flourishing, the same cannot be said for most other areas of the country. The Lone Star State’s pro-business environment, low taxes and reliable regulation have caused businesses to flock to the state. The result has been a bountiful job market, which draws individuals and families to Texas from around the world — many are eager to purchase homes upon arrival.
Texas’ growing population has driven the high housing demand. In Dallas, for example, more than one in 10 homes are sold in less than four days of going on the market.
Vance Ginn, an economist at the Texas Public Policy Foundation, told Breitbart Texas, “Texas is one of the only states that have prices that are higher than they were before the national recession….The Texas model of low taxes, modest government spending, and stable regulations creates an environment where businesses have incentives to move to the state.”
More businesses means more jobs. If Texas continues to implement smart public policies, which allow the private sector to prosper, all signs indicate that the state’s housing market will continue to thrive as well.
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