Good news! Even though oil prices have lowered in recent months, the Texas economy continues to create more jobs for the state’s residents. While many throughout the nation have been concerned about how the lower oil prices would affect the economy, Texas has nothing to worry about. From June 2014 to June 2015, the Texas economy added 276,000 nonagricultural jobs, which equals a growth rate of 2.4 percent compared with 2.1 percent for the United States. Even though a .3 percent difference may not seem like much, it is in the grand scheme of things. So, what does all this mean for the housing market in North Texas? For starters, it is certainly good news. As we’ve mentioned in past blog posts, the real estate market in North Texas is at an all-time high, and according to recent stats, we should get used to it. Texas’ hot housing market is the talk of the town, and for good reason. In fact, home price increases in the state are running at around twice national rates, according to the National Association of Realtors’ chief economist. For those looking to sell their home in the North Texas area, this is excellent news.
What’s the Deal?
One of the possible reasons for Texas’ continued growth when it comes to the economy is that the state has done a good job of diversifying itself in order to survive the oil price decline. Sure, declines in oil prices over the last year have certainly contributed to a slowdown in employment in the state – and nationwide – but there has been enough growth in other areas that the state hasn’t been as affected as some may have thought. In fact, home sales in North Texas are running about 4 percent higher in 2015 than in 2014, which is actually a new record for both purchases and prices. Elsewhere in Texas, sales are actually flatlining.
So, what’s going on? For one, all Texas industries – with the exception of logging and manufacturing – had more jobs in June 2015 than in June 2014. Furthermore, Texas’ leisure and hospitality industry ranked number one in job creation, followed closely by education and health services, professional and business services, and transportation, warehousing, and utilities.
How Does This Affect the Real Estate Market?
The booming job market only means one thing for the North Texas housing market – the buyers are coming back. While many believe that the prices are rising too fast, we are seeing no sign of this affecting home sales throughout the area, including Frisco, Little Elm, Arlington, and Plano. New home construction in North Texas is 40 percent below where it was in 2006, which is the year we hit a nationwide housing bubble. This means that, while home prices are certainly increasing in the area, they aren’t to the point that would turn people off. For 2015, the homebuilder’s association is predicting a 12 percent increase in home starts, something we are seeing throughout new communities in North Texas, such as Willow Bend and Twelve Oaks.
Realtors at The Cheney Group are here to help you with all your North Texas real estate needs, whether you are looking to buy or sell. To find out more about how Texas’ booming job market is affecting real estate throughout the North Texas area, contact us today.