How does the booming Texas economy and job creation impact your decision to buy a home, sell a home, downsize or upsize?
My dad always stressed that homes are the singular best investment in securing a financially sound future. Obviously, our housing needs differ from single family to town homes but the basic premise is the same. Homes are a great investment because valuation rises (providing increased equity), mortgage obligations (loan) remain the same and are outpaced by inflation and the tax benefits of home ownership is clear.
An interesting side note is that home ownership seems to also provide a sense of accomplishment, stability and an increase in earning potential. These side benefits are real and have probably been dissected by social psychologists to uncover the underpinnings. Unfortunately, that is outside of our current discussion but I may go ahead and do a future blog on the subject as it would seem interesting to me, at least.
In a previous blog, we reviewed the housing sector growth and market conditions. This blog is an explanation of what is driving that growth and why investing in real estate is a great financial move. So how is the Texas economy doing in comparison to national averages and why is Texas uniquely poised to offer more stability in the housing market?
From the period of September 2018 to 2019, the Texas economy added more than 300,000 non agricultural jobs. This equates to an annual growth of over 2.4 percent which is favorably compared to nationwide job growth of 1.4 percent. The non government sector added 290,500 jobs which is an annual growth rate of 2.7 percent rivaling the nationwide growth rate of 1.6%.
Surprisingly all industries, with the exception of the information industry, showed a marked increase in growth. The construction industry has ranked first in job creation followed by leisure and hospitality, other services, financial sector, manufacturing, education, health services, transportation, warehousing and utilities. This makes total sense in that supporting the demand for housing, offices and other industries are directly impacted by people movement and increase in demand.
The government produced the largest growth in jobs followed by trade, professional and business services, education and health, leisure and hospitality and finally manufacturing.
The Texas Metropolitan areas ranking the highest in job creation were Dallas-Plano-Irving area followed by San Antonio-New Braunfels; McAllen-Edinburg-Mission; Houston-The Woodlands-Sugar Land and finally Killeen-Temple-Fort Hood.
The Dallas-Plano-Irving area ranked as first with 3.9 percent job growth since September 2018. That is fantastic for those of us who reside here as respects to our real estate investment. As noted in the previous blog, the real estate market in the North Texas area has shown a “market correction”. Please read previous blog. However, it is still considered a “seller’s market”. What makes it a “buyer’s market” as well, is the sharp drop in interest rates and the fact that homes are staying on the market longer than two years ago. Both of these conditions make this a great market to sell and buy. This is unique.
I am a Real Estate Broker practicing in the North Texas area which encompasses Dallas-Plano-Irving areas. We have lenders uniquely poised to offer great mortgage packages to first responders, first time home buyers and those with lower credit scores. We also offer assistance in offsetting closing costs in order to make the buying and selling experience easier financially. Contact me at 214 876-6777 to discuss your specific needs and check out my website affinityconnect.net for more information. We look forward to hearing from you.