Bolstered by the industry’s solid performance in the early first quarter of the year, the Texan real estate market is expected to sustain itself as April comes around. Numerous realtors in College Station, Texas express optimism that the market will continue to hold its own. Economists, though somewhat restrained in their enthusiasm, are also confident that the prospects on home sales and home construction would improve, based on the sales index early this year, as detailed by Marilyn Geewax in her article on the Texas Public Radio website.
Sales of new single-family homes unexpectedly shot up nearly 10 percent in January to a five-and-a-half-year high, according to Commerce Department data.
The Pending Home Sales Index, compiled by the National Association of Realtors, showed that contract signings ticked slightly higher in January.
The Reuters/University of Michigan Consumer Sentiment Index, which measures how confident people are about the economy, managed to inch up 0.4 points in February.
In January 2014, sales of newly built single-family homes were at a seasonally adjusted yearly rate of 468,000 units, according to estimates from the US Census Bureau and the Department of Housing and Urban Development. The figures show a 9.6 percent increase from the revised rate of 427,000 last December, and is also 2.2 percent higher than the 458,000 estimate set in January 2014. All in all, the market tallied a median home price of $260,100 for January this year, with the average selling price ticking at $322,800. The figures represent a 4.7-month long property supply, based on the current sales rate.
These statistics are strongly prompting experienced realtors in College Station and all other Texan cities to remain positive. For residential properties, experts predict minimal price increases. According to surveys, consumers are expecting to pay 3 percent more each year for the next decade – in other words, home prices will grow slower than mortgage rates, which shows that actual property usage is the main motive for home purchase, as opposed to simply investing in the property.
On the other hand, the commercial sector is also bound for more development. Demand for private non-residential construction picked up quickly once the recession had ended, prompting experts to predict steady growth. Retail construction will remain constant, however, mainly because of an increase in online purchasing preferences, while hotel construction may continue to experience a boost from an increase in corporate profits.
Industrial and office construction are seen to follow different paths. Lack of funding from the federal, state, and local government levels left industrial construction services at a decline following a futile recovery effort in 2013. Office construction, on the other hand, is continuously being driven by a stable growth in employment.
(Source: Marching Into Spring, Realtors’ Hopes Rise, Texas Public Radio, March 2, 2014)