Southern US Real Estate Market Is Sizzling Hot
Texas seems to be an exception to the housing market crash. According to Mark Dotzour, who is a chief economist at the Real Estate Center in Texas A&M University, Texas is one of the stable and strongest economies in the U.S. The real estate markets in San Antonio, Austin and Texas, as a whole, has been quite satisfactory with a continuous rise in the home prices. According to Dotzour, around 400,000 new residents arrive in the state every year. He also states that the growth in the job market is double than the average growth rate of the country.
According to Dotzour, the lower taxes in Texas and affordable home prices make it one of the most favorable regions in the U.S. for relocation of various corporations. Apart from this, the home building has been controlled so that the supply to demand ratio is always balanced. However, Dallas and Houston markets seem to be running the risk of overbuilding in the commercial real estate sector. But, currently the commercial real estate prices have been showing a continuously upward trend, particularly in the Central and South Texas.
On the other hand, a report issued by Moody’s, which is a real estate investor services company, San Antonio has been rated as one of the worst markets in the country. This is in exact contradiction with the remarks made by Dotzour. According to this report, there is a steady increase in the supply of new apartments and hotels into the market. This is due to the fact that an increased number of apartments and hotels were built by developers for the purpose of Hurricane Katrina evacuees. However, Moody’s report has only considered numbers from three areas including multi-family, full-service hotels and limited-service hotels while drafting the report. They have excluded the data from retail, downtown office, suburban office and industrial property types.
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