Recovering the State’s Oil Means Something Big for Housing

By Allyson Mendel | On

If you pay attention to the news at all chances are you’ve been hearing about the oil crisis. In 2015, Texas and the rest of the country experienced an oil price collapse, which led to a significant loss of jobs. Even though Texas continued to see a flourishing economy and housing market in general, we still felt the impact of this oil issue. However, a recent report indicates that Texas is pushing forward and recovering from the oil collapse one step at a time.

In fact, the state added more than 181,000 nonagricultural jobs from March 2015 to March 2016, which is an annual growth rate of 1.5 percent. Furthermore, approximately 148,000 nongovernment jobs were added during that same time frame. March 2016 was the third month in the last year that Texas posted an employment growth rate that exceeded that of the average national growth rate.

So, what does all this have to do with housing? For starters, the addition of more than 300,000 jobs means that more people are moving to the state and settling down. As we’ve discussed at length in the past, Plano, Frisco, and North Texas, in general, have become a hotspot for corporate relocations and new construction. With companies such as Toyota moving their main headquarters to the area, we have seen an influx of people looking to buy a house. While the state continues to recover from the oil crisis, we are seeing the housing market to continue to flourish.

Housing Market Insight

According to a report by Texas A&M University’s Real Estate Center, total Texas housing sales increased by nearly 6 percent in February of this year. The national average was just over 5 percent, once again showing how strong the housing market is in Texas. With this, mortgage interest rates remain below 4 percent, which is a major factor when it comes to home purchases. Since 2011, housing prices have rose dramatically in Texas and they continue to do so to this day. However, this has not affected those looking to buy in the area. As we’ve discussed in the past, houses are flying off the market at a record pace, despite the higher price tag.

These days it is more important than ever that you have a knowledgeable and experienced local Realtor by your side. As anyone who has bought a house in Frisco or one of the surrounding cities in the last year or two can attest to, it pays to have the inside scoop. Realtors have access to information and homes before they ever hit the market, increasing your chance of finding the right home for you in a neighborhood you love.

As Texas continues to bounce back from the oil crisis, we expect more and more new residential construction and home prices to remain steady. In March of this year, the state’s unemployment rate fell to 4.3 percent, which is significantly lower than the national average of 5 percent. With unemployment rates low and new jobs being added every day, the housing market will continue to thrive.

To learn more about your Frisco housing options or to check out any of our area listings, please contact The Cheney Group today.

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