More good news about the real estate market in Midland and Odessa: two new reports from Local Market Monitor say the housing market in both markets is strong and should stay that way for the next few years.
According to the reports, home values for Midland are forecast to increase by 8 percent over the next 12 months, compared to a national increase of 4.6 percent. In the second and third years, prices are forecast to increase 9 percent each year.
In Odessa, home values are forecast to increase by 7 percent over the next 12 months, and 9 percent each year in the next two years.
Why this positive outlook on the strong housing market? Jobs!
The two reports note economic growth has been good in Midland and Odessa since the recession because of the development of shale oil deposits, with good job growth in recent months in both cities.
In Midland, job growth over the past 12 months was 4.7 percent (compared to a national increase of 2.1 percent). Job growth is the most immediate guide to the demand for housing used by Local Market Monitor in their assessments. They note new jobs spur population in-migration, while jobs regained in a recovery create new households, and investments are less risky when job growth is strong.
In Odessa, job growth over the past 12 months has been 4 percent.
Also noted in in the reports, the average home price in Midland is currently $183,463, up 7 percent over the past 12 months, and $210,980 in Odessa, up 5 percent over the past 12 months.