Texas housing faired better during the recession than most states, with prices dipping only 2.5% from 2007 to 2011. With its available land and low construction costs, builders were able to meet demand in the run up and simply cut back when the slow down in the housing market hit. With banks being tighter with lending however, many builders were left with few lots to build on and ramping back up as the market heated up has proved difficult. Without a dearth of new homes coming to the market, homebuyers are finding that the Texas housing supply is limited and many are facing multiple offer situations and bidding wars over the homes that are available.
Thanks to a strong job market and an expanding population, the Texas housing market is strong and will continue to be so in the foreseeable future. This presents great opportunities for investors and homebuyers alike, even with a near term shortage of available homes to purchase. Luckily, many Texas-owned banks are loosening up their construction lending purse strings as they see the market pick up once again and builders are starting to come back from their recession linked hibernation.
image courtesy of StuSeegar