Housing sales in Texas are exploding and prices are rising. In February alone, 17,779 single-family homes were sold in Texas. This is 5.4% more than were sold in February 2013.
Why so many home sales? Because the population of Texas is growing by leaps and bounds, and those new residents need places to live. While we don’t have an official census to give us absolute numbers, the government estimates that Texas gained 1,000 new residents each day between July 2012 and June 2013. And the influx hasn’t slowed.
This is due in part to the booming oil industry, and in part to the business-friendly atmosphere in Texas. Companies are closing their doors in other states and moving their facilities to Texas to avoid heavy taxes and over-regulation. They’re creating jobs, and jobs attract new residents.
Right now, state-wide inventory of homes stands at 3.6 months, with even less in some cities. What does “months of inventory” mean? If no additional homes are offered for sale, at today’s rate of sales the entire inventory of homes for sale in Texas will be sold within 3.6 months. With even less inventory, Houston, Dallas, and San Antonio could run out of homes in as little as two months.
Builders are trying to ease that strain, but getting new homes built in Texas today isn’t easy.
First, there’s a lack of building-ready lots. Second, there’s a lack of manpower.
Building contractors can’t compete with the wages paid in the oil fields, so able bodied workers willing to build homes are scarce. Contractors could import workers, but then they face a second dilemma – where can those workers live?
Javier Gonzales of Gonzales Construction puts it bluntly when he says: “There aren’t enough houses to build more houses.”
In some areas workers are living in hotels and make-shift trailers, but even that option isn’t available everywhere.
The good news for home buyers is that in spite of double-digit price increases, homes in Texas are still affordable. The median price of a home in Texas is $139,400. Compare this to California’s median selling price of $408,000 and you’ll understand why so many Californians are migrating to Texas.
Simply put, living in Texas means you can keep more of your hard-earned dollars.
If you’re shopping for a home in Texas, give yourself an important advantage: Become pre-approved for your loan before you make that offer. Pre-approval sends a clear message to the seller that you can stand behind your offer.
And remember, when your pre-approval comes from the Mike Clover Group, you can close within 30 days.
So call us today at 1-800-223-7409 or apply on line at http://www.mikeclover.com.