The reports are in for August and it’s not just the temperatures that are hot, hot, hot in Midland-Odessa. The real estate market is ranking among the top performing in the nation.
Realtor.com listed Midland as the No. 8 market in the country—check out their graph below.
They summed up these ten markets:
“This year we are seeing inventory continue to grow in August, and while overall demand is strong, the trend in median days on market is suggesting that the market is finding more of a balance,” concluded [Realtor.com chief economist Jonathan] Smoke. “This bodes well for would-be buyers who have been discouraged by the inability to find a home to buy this spring and summer.”
The recent stock market correction could offer benefits to prospective buyers. “A temporary drop in demand by those negatively affected by stock market instability might be just what strained would-be buyers need to gain the advantage in a market that has given sellers the upper hand so far this year,” said Smoke, adding that postponement by the Fed due to the market correction could extend accessibility of attractively low mortgage rates.
Local Market Monitor actually ranked Odessa higher than Midland as an investment, giving Odessa an 8.3, with anything over 6 being ranked “low risk.” Midland earned a 4.7 investment score, in the “medium risk” category.
For both markets, they said, “Economic growth has been good since the recession because of the development of shale oil deposits. The economy is currently dominated by the big energy sector. Overall, job growth was strong in recent months…Population growth has been high. Expect a strong housing market the next few years.”
Here what they had to say specifically about Midland:
Growth in the energy sector was fair. During the recession, home prices dropped a mild 3 percent. Rents are high compared to home prices, presenting investment opportunities. Over the last three years, prices were up 20 percent. Prices are still well below the income price, showing weak fundamental demand. The average home price in this market is currently $181,661.
Growth in the energy sector was poor. During the recession, home prices dropped a mild 6 percent. Over the last three years, prices were up 24 percent. The average home price in this market is currently $210,017.
Job growth, which is Local Market Monitor’s most immediate guide to the demand for housing, was up by 3.1 percent over the past 12 months in Midland. This compares to a national increase of 2.1 percent. New jobs spur population in-migration, while jobs regained in a recovery create new households. Investments are riskier when job growth is falling, less risky when job growth is strong.
Jobs in Odessa have grown even more in the past 12 months, 3.3 percent.
Jobs in Midland were up 3.1 percent in the past year, compared to the national gain of 2.1 percent. The unemployment rate in June 2015 was 3.4 percent, versus 3.2 percent last year.
Jobs in Odessa were up 3.3 percent in the past year, and the unemployment rate in June 2015 was 4.4 percent, versus 3.8 percent last year.
Here’s what CoreLogic had to say about the overall real estate market in the U.S.:
“Home sales continued their brisk rebound in July and home prices reflected that, up 6.9 percent from a year ago,” said CoreLogic chief economist Dr. Frank Nothaft. “Over the same period, the National Association of Realtors reported existing sales up 10 percent and the Census Bureau reported new home sales up 26 percent in July.”
“Low mortgage rates and stronger consumer confidence are supporting a resurgence in homes sales as of late,” said CoreLogic CEO Anand Nallathambi. “Adding to overall housing demand is the benefit of a better labor market, which has provided Millennials the financial independence to form new households and escape ever-rising rental costs.”