With 2016 about halfway over, Texas continues to be home to a vibrant real estate market across the state. Knowing the housing trends affecting the industry is vital for planning as well as targeting investment strategies to meet demand. From single-family demand to Houston response to the dip in the energy sector, there is certainly a lot to follow! All of it is vital to directing investments towards the right areas. Here are three significant trends we see in the Texas housing and real estate markets.
New construction in Houston continues to slow
The drop in energy prices and the subsequent slowdown of the energy sector continues to have a ripple effect in the Houston real estate market. As uncertainty about oil’s global price continues, the pace of new construction in Houston is slowing down accordingly. However, in spite of that decline, many investors continue to expect Houston to book another strong year in real estate sales. The market has been at fever pitch for an extended period, and there remains a strong demand for housing. Individuals who delayed purchasing a home in recent years are now more likely to be on the cusp of entering the market as buyers. This potential for new demand is the trend to watch in Houston.
Dallas heats up as its market takes a positive turn
While some concern themselves with the state of Houston’s markets, others are noting that Dallas continues to see excellent growth year over year. A significant trend in the DFW area currently is an unyielding increase in demand for single-family homes. This requirement continues to drive prices up, resulting in an increase in home values of nearly 10%. Construction efforts are heating up as this market continues to hold inventory down to a level of just barely two months. The decrease in construction in Houston may contribute in part to the shift towards the Dallas-Fort Worth area. Track this trend closely as the Dallas market grows with its demand.
Central Texas real estate remains a strong commodity
In Central Texas, driven by the city of Austin, a seventh year of real estate growth shows few signs of weakening. We can correlate the positive trend here with a continued population growth pattern. Austin’s popularity as a destination for millennials and new business defines its thriving real estate markets. Job growth remains steady as well, continuing to attract more new faces which in turn seek out new homes in which to live. However, there are some indications that builders may struggle to keep pace with demand. Watch carefully as this trend develops. Whether or not builders can find new ways to meet demands is yet to be seen.
Overall, the real estate market in Texas remains strong. The state’s increasing economic diversity serves as a bulwark against damage caused by the energy sector downturn. Even as some markets slow up, people continue to turn to Texas for new opportunities. Even with trends such as high demand in markets across the state as well as challenges to builders, industry experts seem confident that this will be another year of growth.