Average annual home appreciation in Texas is between 2 and 7% per the Office of Federal Housing Enterprise Oversight (OFHEO) and Real Estate Center at Texas A&M University. While other real estate markets such as areas of Arizona, Nevada, California, Florida and New York became inflated during the housing bubble, growing at a parabolic rates of 20, 30, 40% plus, prices of homes in Texas have appreciated steadily, not at ballooning rates indicative of irrational exuberance. Relocate America has consistently named Dallas-Fort Worth (DFW) as a top 20 city in America to which to relocate. Where there are jobs, there is a consistent inflow of people. DFW leads the country in job growth, having added 68,000 jobs through July 2008. This is a key reason why Texas is one of the only places in the country where real estate investors can still purchase property that will cash flow from day 1 of tenant occupancy. Foreign investment in Texas is also a factor to note. In 2005, foreign investors owned 29,000 acres in Texas. By 2006, that number was at nearly 430,000 acres.
The below was reported from cnn.com:
How to play the real estate bounce-back
The housing market may be melting down, but Business 2.0 worked with Moody’s Economy.com to identify 10 cities that have just about hit rock bottom - and offer opportunities for savvy investors to get in while the getting’s good.
Dallas-Fort Worth
Projected median sales prices for single-family homes:
Q1 2008: $151,930
Q4 2009: $161,690
Growth rate: 6.4 percent
The Metroplex, as locals call the Dallas-Fort Worth region, is smoking, adding jobs at twice the national rate. Better yet, those new jobs are concentrated in well-paying fields like banking, advertising, and health care. Dallas-Fort Worth sits at the center of the Interstate 35 corridor, a “megapolitan” galaxy of urban development that Virginia Tech researchers estimate will add 6.4 million new people and 2.8 million units of housing over the next two decades. Dallas also serves as the North American headquarters for international high-tech employers like Nokia and Ericsson. All of this makes Dallas one of the nation’s nine most global metros - cities that are hubs for international trade and foreign investment - according to an analysis by Moody’s Economy.com.
Dallas has largely avoided the boom-and-bust cycle, which is one reason this market is on track to post the best returns on housing of any major U.S. city during the next two years. An added bonus: The region’s service sector has escaped the collateral damage that comes when the bubble bursts and equity-driven spending dries up.
Below is a link to a Dallas Morning News article published on October 2, 2008.
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Texas Real Estate Market
