As oil prices continue to fall, there has been fear that it will have a negative impact on Texas’ booming economy. However, we can all rest easy now that a report published by the Real Estate Center at Texas A&M University came out indicating that Texas will continue to create jobs despite lower oil prices. From April 2014 to April 2015, the state created 304,200 nonagricultural jobs, which translates to an annual growth rate of 2.6 percent. In comparison, the average job growth rate in the United States is 2.2 percent. And it doesn’t stop there: Texas’ nongovernment sector added 282,200 jobs – an annual growth rate of 2.9 percent compared with 2.6 percent for the rest of the nation. This is great news for the economy and potential homebuyers alike, as experts predict job growth throughout the state will remain healthy, which means the housing market will continue to boom.
As we have mentioned in previous blog posts, the real estate market in Frisco, Plano, Prosper, and throughout Texas is at an all-time high, with homes flying off the market at a record pace. With major companies such as Toyota setting up shop in our area, we are seeing an influx of people needing homes and looking to buy. Similarly, both residential and commercial construction is up in North Texas, with communities such as The Canals at Grand Park and the community around the Dallas Cowboys’ new Star of Frisco development underway, providing more opportunities for those looking to buy.
There has been a lot of talk regarding how the falling oil prices will affect Texas’ economy, and, in turn, real estate market. However, as the report from Texas A&M indicates, this drop in oil has yet to impact the economy. In fact, the state has continued to add jobs at a slightly higher rate than the rest of the nation. Over the past six months, crude oil prices have dropped for over $100 a barrel to less than $70 a barrel. While it may seem like there is no way this drop won’t impact the economy and housing, let’s take what happened in 2006 into consideration. In 2006, crude oil was $66 a barrel. However, that same year Houston (among other Texas cities) saw its best housing year since before the recession – producing $15.8 billion in home sales. While not in North Texas, looking at what happened in Houston more than a decade ago when the economy and housing market were in a similar place is important and indicative of what we can expect.
At The Cheney Group, our Realtors make a point to stay up-to-date with the latest happenings, in both the economy and real estate. It is our intention to inform you of the latest trends and help you either sell your home or find the home of your dreams in North Texas. As people continue to relocate to this area because of new job opportunities, we anticipate continued growth in real estate. To learn more about the housing opportunities throughout North Texas, please contact The Cheney Group today.