Manufacturing jobs posted higher numbers, and wages increases provided high points in the June 2018 report from the Bureau of Labor Statistics.

When it comes to buying a home in hot Texas markets, what’s holding a lot of buyers back — besides inventory — is income. With so much of a recent graduate’s paycheck going toward exorbitant student loans, and with many families making the tough choice of forgoing homeownership so one parent can stay home with young children, income stagnation is a huge issue.  (more…)

There’s been a pretty steady drumbeat from leading economists — a recession is coming. In fact, at this month’s National Association of Real Estate Editors journalism convention, all three economists on a dais one Friday found themselves agreeing on two things: a recession is coming, and real estate won’t be the impetus this time.

Frank Nothaft (Corelogic chief economist), Danielle Hale (economist with Realtor.com), George Ratiu (research director with the National Association of Realtors), and Aaron Terrazas (senior economist with Zillow) all agreed that other factors — like tariffs, rising mortgage rates, and even a correction in the stock market — will likely be the cause or causes for a recession. (more…)

The good news? In the past year, 909,000 new single-family homes have been started, and it’s projected that by 2020 starts on new home construction will hit the one million mark. The bad news? The need will be for 1.2 million, a leading economist said Thursday.

“The forecast is that home prices will continue to outpace income growth,” Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy for the National Association of Home Builders said. (more…)

Shale Slump

While prospects for Midland-Odessa’s economic recovery remain steady and strong, a recent article by The Midland Reporter-Telegram suggests growing problems over housing availability. Citing information provided by the Permian Basin Board of Realtors, The Reporter-Telegram reports that housing inventory reached a new low last month.

(more…)

Economic analysts expect 2017 to be a growth year for Midland-Odessa.

Economic analysts expect 2017 to be a growth year for Midland-Odessa.

Economic analysts predict 2017 will be a much-needed year of growth for Midland-Odessa. According to a story by The Midland Reporter-Telegram, Midland’s two-year slump seems to be coming to an end. Citing a report prepared for the Midland Development Corp by economist Karr Ingham, The Reporter-Telegram says that despite slow growth in some sectors, key factors indicate the area’s economy is in recovery.

While the decline in spending merely slowed, employment numbers suggest real growth. Reports indicate that nearly all of the job losses reported since 2015 have been recouped. However, optimism over employment numbers remains tempered by the expectation that revised data from the Texas Workforce Commission, to be released next month, will likely show the two-year job losses as much higher than previously reported.

(more…)

midland housing prices

Things look grim for the real estate market in Midland over the next 12 months, as home values are forecast to decrease by 5 percent over the next 12 months. In the second and third year, prices are forecast to decrease 2 percent and remain unchanged, respectively, according to new reports from Local Market Monitor.

In Odessa, home values are predicted to increase by 2 percent over the next 12 months. In the second and third year, prices are forecast to increase 1 percent and 2 percent. Nationally, prices are forecast to increase by 4.9 percent.

Most worrying, the reports have called investment in Midland real estate “dangerous,” giving it a -1.7 score, on a 1 to 10 scale. In Odessa, the rating is a 1.3, putting that city in the “speculative” category.

This is a marked changed from the market of three years ago, when the investment risk for both cities was in the “low risk” category.

(more…)

oil prices west texas

New numbers are in for the January real estate market in Midland, and the experts say the drop in oil prices are continuing to affect housing prices.

In Midland, the Local Market Monitor Report analysts predict a 1 percent decrease in home values over the next 12 months. Nationally, prices are forecast to increase by 4.4 percent.

In the last year, the price of West Texas Intermediate futures contracts has fallen almost 20 percent. Friday at the close of markets, it was $29.44 a barrel.

Many analysts say the worst isn’t over yet, and recently the CEO of ConocoPhillips Ryan Lance told investors the oil downturn could stretch into 2017.

“We believe this downturn could last a while longer,” Lance told the Houston Chronicle. “Just a few months ago, we thought the market would rebalance by the second half of 2016.”

But the Local Market Monitor reports predict an upturn in Midland before that: they’re forecasting a 3 percent increase in home values in the second year, and a 5 percent increase in the third.

They’re also saying home values for Odessa will increase by 4 percent over the next 12 months, and in the second and third years, prices will increase 7 percent and 8 percent, respectively.

(more…)

It’s not all about San Francisco and New York City, says NerdWallet, the website that analyzed American metropolitan areas and came up with a list of the top 10 cities for young entrepreneurs. The list includes some of the spots you’d expect: Denver, Colo.; Seattle, Wash.; and Austin, Texas.

But we were happily surprised to see Midland on the list, ranking No. 8 above Boston (No. 9) and Fargo, N.D. (No. 10).

So what earned Midland a spot on the list?

(more…)