Texas never experienced the full housing bust so many states like California endured. There was no great bubble pop and the strength of the housing market continues on unfretted by the looks of it. In 2013, the average home value increased by 8.48% according to a report by the Texas Association of Realtors (TAR). And another good sign of this growth is that the rise is not the result of house flippers or investors: people are moving to Texas to stay.
There is demand in Texas for housing and it is no wonder. With a healthy job market and affordability compared to many places in the country, there is no end in sight. High tech jobs, and other key sectors of the economy are playing a big role in the desire of companies, and the people they employ, to seek out the Lone Star state as a fruitful environment for relocation.
Home prices in the state are based on inventory, or in this case, the lack thereof. Builders are struggling to keep up with demand as more people find their way to Texas. The TAR report shows that as long as the pace of demand is more than the available inventory, there are no signs of slowing in the booming house market. Inventory is around 3.6 months at the moment, which is half of a 6.5 month balanced market.
This not only benefits realtors; builders, electricians, plumbers, and anyone else reliant upon the housing market are enjoying more work than they can handle in some cases. This is a win-win for the state’s economy as it keeps people working, helps build a healthy tax-base, and keeps the state on the forefront of economic stability.
Texans know that everything in the state is just a little bigger than everywhere else.