Texas Economic Update

Dated: 11/07/2018

Views: 210

                During this election season, once of the common boasts we’ve heard from candidates is that the Texas economy is doing extremely well. Our Governor incumbent even tweeted once that the Texas GDP would be the 10th largest economy in the world. Yes, the world, not just the US. All this talk made us wonder… just how good is the Texas economy doing, and what does that mean for our real estate market?

                Statewide, the unemployment rate fell to 3.8%, from 4% a year ago, which is pretty close to the national rate of 3.7%. New jobs were created in many industries, especially business, construction, hospitality, education, healthcare, and trade, while the information sector showed some losses.

The DFW area was the 5th highest metro area for job growth, with Midland taking the top spot. Unemployment in DFW is a little lower than the state and national rates, at just 3.4%. The financial sector is struggling to create local jobs while construction, business, and hospitality remained strong. Despite the good news, some sources like the Dallas Fed and Dallas news are forecasting a cool down. This isn’t necessarily bad news, since we’ve been experiencing strong growth for a few years now. As great as strong growth may be, it can’t last forever. To quote one of our favorite real estate attorneys, “you can’t break world records every year.”

One of the biggest struggles we’ve seen in the area has been a lack of housing inventory for the new Texans moving here for jobs. A shortage of available housing led to some rapid price increases in the area and a frenzy of real estate activity. We are finally seeing some relief, with an active listing increase of 14.5%, giving home shoppers more options and maybe more important than that, a fair chance to find a live-able home without facing a bidding war. As expected, an easing of inventory shortages has also come with a slight drop in sales (2.3& in August compared to August 2017), and a small jump in market time. While the numbers still indicate a “seller’s market,” home sellers are feeling the change, and some are growing anxious when they don’t receive a stack of offers in their first week on the market. However uncomfortable this may feel, it’s actually pretty normal. A home selling over list price in 1 day is not.

This means that when selling a home, it’s become important once again to declutter and stage, maybe even do a few upgrades to entice home buyers. Pricing is crucial as well. Buyers appear to have hit their limit with high housing prices in many parts of DFW, and price reductions currently outnumber home sales by about 3 to 2. Choosing a strong listing agent with a solid marketing plan has always been important, but now is a make or break scenario.

Will the results of today’s mid-term elections change anything? This remains to be seen, but we think Texas will weather any changes that may be on the horizon.

Contact a GroupWatson Agent TODAY for Professional Advice & Expert Direction.

~Experience the GroupWatson Difference~

Call or Email Today!
972.370.1775|BuyOrSell@GroupWatson.com

*GROUPWATSON'S FEATURED LISTING OF THE WEEK*

1520 Chestnut Drive, Savannah TX 76227


Image title


Blog author image

Lisa Ellard

With a background in marketing and journalism, Lisa Ellard is well-equipped to offer each of her clients savvy business advice, while always keeping their lifestyle needs a priority. She is a detail-....

Latest Blog Posts

Why Choose GroupWatson

When you’re preparing for a home sale or purchase, one of the most important pieces of the puzzle is who will be representing you and your best interests. Here are some key things to consider, and

Read More

Smart Homes And Mesh Networks

Smart homes and smart home tech are becoming increasingly popular these days. Various smart home devices, sensors and more can add new functions to a home, automating some tasks and even increasing

Read More

2020 Fireworks Shows

Watch In Person The Colony July 4th Fireworks Saturday, July 4th at 9:30 PM in the area of Five Star Sports Complex Accompanying music broadcast on 99.9 FM Prosper Pride in the Sky

Read More

Things To Consider When Buying Lake Property

Buying a lake house can be a great investment, regardless of whether you intend to use it as a vacation property or a year-round residence. With that said, you shouldn’t rush into buying a

Read More