Texas Real Estate - Looking back to 2009 and forward to 2010!

By
Real Estate Agent with Results Realty

At our last Montgomery County REALTOR® brunch the speaker was Jim Gaines who is a research economist with Texas A&M Real Estate Research Center.  He spent some time looking at last years housing market and then brought his crystal ball out and looked at what is in store for us this year. 

Here's what he had to say about housing in Texas in 2009:Jim Gaines from Recon gives his Texas real estate forecast

  • Texas lagged in the recession; in 2008 we took a pass.  In January 2009 we joined in.  Typically Texas lags going in and lags going out.  We didn't fall as far and have as many problems.
  • Tax Credit did help - 10 to 12% increased sales volume - Sales that happened that would not have.
  • Foreclosures and home builder concessions kept home values down.
  • Appraisal issues became a major issue in purchases.
  • Lenders have made purchasing mortgages difficult to get. Jumbo loans were almost non-existent.
  • Texas as a whole was down about 8% in 2009.  The median and averages prices didn't change which is good.
  • On a whole 2009 was relatively flat.
  • There was not much recovery for home builders but it shouldn't get much worse.
  • Parallel to what happened in the 1980's. 

Here's what he said about Houston in particular:

  • Houston ended the year with a 6 month inventory.  We were down about 8%.  The median price was flat.
  • #1 home building area in the country even though we are down 50%.
  • We are poised for a boom for the 21st century; both population and business growth.

 Then he brought his crystal ball out and tried to give us some ideas for 2010. (Just kidding he didn't have a crystal ball and told us so!)

  • Bill Gaines research economist at Texas Real Estate Center gives his forcast for 2010We will probably have low interest rates for first half of the year. For the second half of the year it is possible that interest rates may increase from 5% to 6.5%.
  • Job losses will go flat but we won't see much gain.  2010 is likely to be a year of damage control.
  • Flat to Low growth in the housing market.
  • In-migration should pick up.
  • Home prices decline MUCH less than the last 2 years.
  • Government stimulus should be over.  He didn't see politicians voting for it again but have $ left over.
  • State & Local Governments & school districts are going to have to restructure.
  • Foreclosures continue through 2011.  5 year arms that were given in 2005 are going to come due. (They were sometimes called liar loans.) They had negative amortization, strategic defaults. So far upside down that even if they could meet it they will probably walk. Which means we are looking at having quite a few additional foreclosures.

It wasn't a totally rosy forecast but if you are looking to buy a house it sounds like this is the time to find a deal. On the flip side when you are selling you may not get as much as you want but on the positive side if you are looking to buy another home you will get a deal on the house you buy. 

I also think in the big scheme of things a flat market is good!

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Copyright © 2010 Marchel Peterson, All Rights Reserved.*Texas Real Estate - Looking back to 2009 and forward to 2010!!*

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Topic:
ActiveRain Community
Location:
Texas
Groups:
All Thing's Texas
Houston Real Estate Professionals
Lone Star Real Estate Professionals
Posts to Localism
Texas Real Estate
Tags:
the woodlands tx
spring tx
magnolia tx
tomball tx

Comments 24 New Comment

Anonymous #20
Anonymous
Anonymous

Hi Marchel,

While Jim Gaines report wasn't totally rosy, it sounds a lot better than some areas will see.  Damage control at least shows that we have the politicians attention.  We the People still have some say...thankfully.  Good luck this year, hope it a winner for you.

Gail

March 10, 2010 03:40 PM
Rainmaker
14,754
Dana Lim
Allstate Insurance

Hi Marchel, After I win the Powerball tonight - I'll call you to find me some property so I can build my animal sanctuary!

March 10, 2010 05:19 PM
Rainmaker
273,277
Irene Tron

Great informational post.  Have the bluebonnets started blooming yet?  I miss all the TX wildflowers!

March 15, 2010 07:56 PM
Ambassador
470,881
Kate Elim
Realtor 540-226-1964, Selling Homes & Land at LA
Dockside Realty

Hi Marchel...That report certainly gave you a pretty good look into the past, present, and future of real estate in your area.  Although the news about the rising interest rates is maybe not the best it is to be expected.  They are bound to go up sooner or later.

Kate

March 16, 2010 08:14 PM
Rainmaker
1,238,191
Charles Stallions
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.
Charles Stallions Real Estate Services

Marchel, you sure make Texas look and sound really good, I almost want to move there. What a wonderful promotion of your state.

March 21, 2010 09:26 AM
Rainmaker
639,790

Marchel Peterson

Spring TX Real Estate E-Pro
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