Unlike many states in the U.S, the Texas housing market did not suffer a significant drop in the average home prices during the recession. While Texas saw did not suffer in the employment rates either, compared to the rest of the country, there was no influx of capitalists and investors who buy the distressed properties at a meager price. One of the reasons why the capitalists lacked these opportunities is that Texas did not have a large number of undervalued properties for sale. Currently, the 2015 housing market is vibrant. While other sectors such as the energy industry are declining, they have not affected the real estate sector negatively.
The oil industry is not thriving either, but the tenacity of the housing market has weathered the storm, meaning that the real estate industry is alive and kicking. Today, there is a marked increase in the average home prices. Considering that the home prices have almost doubled the national average, experts attribute this growth to the diversity of the housing market in Texas. Texas is a good place to invest in real estate since the housing market is unshakable. If the great recession did not hurt Texas, investors are confident that the decline in the oil industry will not affect this vibrant economy.
While Texas has been growing steadily, the state is experiencing a double-digit price appreciation for the first time in history. Home sales have increased significantly, in terms of both the prices and numbers. For example, Dallas-Fort Worth has seen tremendous growth, with median home sales appreciating 10%. Other cities that have enjoyed such growth include Houston and Austin.
Five Greatest cities in Texas
Texas is one of the largest states in land U.S. The state has a large population of 25 million citizens. Each of the following cities in Texas has more than 700,000 residents, with more than 100,000 living in the metropolitan areas:
Houston has a population of 2.1 million residents and is the largest city in Texas. The key attractions include the Sam Houston Park. Herman Park, the Houston Arboretum, lots of municipal art projects. Houston has a vast array of developed suburbs that are ideal for affordable residential neighborhoods.
San Antonio is the second largest city in Texas, where more than 1.3 million people live. San Antonio is the home of a great basketball team, San Antonio Spurs that attracts a vast array of sports fans. The city has a vibrant nightlife, and its famous River Walk offers diverse shopping opportunities, entertainment, recreation, and dining alternatives in a park-like setting.
Dallas has plenty of residential neighborhoods where more than 1.2 million people live. Dallas is known for the vast array of sports teams that include the Mavericks.
Austin has over 800,000 citizens. Austin, the capital city of Texas, has lots of administrative houses. Administrative buildings are a major contributor to the real estate arena. Also, this city has a rich cultural history and its museums have lots of artifacts that give the visitors more information about its inception.
More than 700,000 people reside in Fort Worth. This city affords a vast array of recreational opportunities in the available urban parks. Fort Worth has lots of school districts, modern infrastructure, and vast land for future development.
The Mortgage laws and regulations in Texas
The banking sector has allowed Texas to stay afloat during the hard economic times. The real estate market has enjoyed a great deal of stability due to the compliance with the mortgage laws. The following regulations have transformed Texas into one of the most desirable states to invest in the real estate sector:
- For a typical 20-year mortgage, a mortgagee pays back at an interest rate of 3.5%. However, a 30-year mortgage is more expensive and might get as high as 4.5%.
- Real estate experts recommend choosing a shorter repayment period of 15 years to enjoy a rebate and pay back at a low rate of 3%.
- The state aims to reduce the foreclosures by eliminating the dishonest and predatory lenders.
By regulating the banking sector, the state aims to improve the confidence, attract more investors, and make real estate a key pillar of the economy. As a result, Texas has the lowest rates when it comes to foreclosures.