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…)

Chinese investment firm Yantai Xinchao Industry Co. is spending $1.3 billion to buy massive oil fields in the Permian Basin area of Texas. Photo: Paul Lowry via Creative Commons

Chinese investment firm Yantai Xinchao Industry Co. is spending $1.3 billion to buy massive oil fields in the Permian Basin area of Texas. Photo: Paul Lowry via Creative Commons

A Chinese investment firm has its sights set on West Texas as they declare their intent to spend $1.3 billion (8.3 billion yuan) to buy massive oil fields in Howard and Borden counties. This purchase is part of a trend of Chinese interest in U.S. energy resources.

Yantai Xinchao Industry Co. has signed a letter of intent to the Shanghai Stock Exchange to acquire oil fields in the West Texas Permian Basin area, now owned by Tall City Exploration LLC and Plymouth Petroleum LLC, two Nevada-based companies with Midland offices. According to the stock exchange filing from Saturday, Oct. 31, this deal is part of a limited liability partnership in which Yantai Xinchao will also acquire Ningbo Dingliang Huitong Equity Investment Center.

The purchase has been approved by the U.S. Committee on Foreign Investment, part of the Treasury Department, the filing said.

(more…)

Two new reports from the Local Market Monitor say Midland and Odessa can expect a strong housing market for the next few years.

Two new reports from the Local Market Monitor say Midland and Odessa can expect a strong housing market for the next few years.

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!

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employment growth

In Texas, it’s all about jobs, jobs, jobs.

A new report from the Real Estate Center at Texas A&M University says that the Texas economy gained 276,400 nonagricultural jobs from June 2014 to June 2015, an annual growth rate of 2.4 percent, compared with 2.1 percent for the United States. Many of the major metropolitan areas saw much bigger gains, like Midland-Odessa.

Midland ranked first in job creation, followed by Dallas-Plano-Irving, Odessa, Beaumont-Port Arthur, Austin-Round Rock, and San Antonio-New Braunfels. Fort Worth-Arlington ranked No. 7 with 2.7 percent job growth.

In fact, every single Texas metro areas except Wichita Falls had more jobs in June 2015 than one year prior.

Big sectors for job growth were:

  1. Leisure and Hospitality: 5.05 percent growth
  2. Education and health services: 3.87 percent growth
  3. Professional and business services: 3.54 percent growth
  4. Transportation, warehousing and utilities: 3.52 percent growth
  5. Construction: 3.34 percent growth

All these new jobs in the Texas economy were created despite lower oil prices. Real Estate Center research economist Ali Anari says there hasn’t been much impact from dropping oil prices yet. But that could change.

“The oil companies hedged into the future and they have oil contracts, many of them extending to the end of this year,” Anari said. “If there is a downtown, it would not be apparent until next year.”

(more…)

Two new reports paint a bright picture of the housing market in Midland and Odessa now and for the next three years.

The Local Monitor Reports, released today, cite a 7 percent increase in Midland home prices over the last 12 months, which puts the average home price at $183,463. In Odessa, prices have gone up 5 percent over the last year and the current average home price is $210,980. In the last three years, home prices were up 10 percent in both markets.

The good news doesn’t stop there. Both markets are scored significantly into the “low risk investment” category. The reports predict an 8 percent increase in home values over the next 12 months in Midland—compare that a national average of 4.6 percent. In the second and third years, prices are forecast to increase 9 percent and 9 percent, respectively.

In Odessa, they predict a 7 percent increase in home values over the next 12 months, and 9 percent in both the second the third years.

Why this rosy glow around the Midland-Odessa housing market? One word: Jobs.

(more…)

Midland home prices

Photo: Dan Moyle

Two new reports from Local Monitor Report are projecting big increases in home values in Midland and Odessa over the next three years, almost double the national average. Prices are predicted to rise even more.

Home values for Midland are forecast to increase by 8 percent over the next 12 months—compare that to national forecast of 4.6 percent. In the second and third years, values are forecast to increase 9 percent each year, a 26 percent increase in three years.

Midland home prices are projected to increase even more, at 30 percent over the next three years. In the last 12 months, prices have gone up by 7 percent, bringing the average home price in Midland to $183,463.

In Odessa, the report is predicting a 7 percent increase in home values over the next 12 months, and 9 percent in each of the next two years. That’s a total projected increase of at least 25 percent.

Odessa home prices are forecast to increase more, at 29 percent over the next three years. Odessa home prices have increased by 5 percent in the last 12 months, and the average home price is now $210,980.

All this adds up to a “low risk” categorization by Local Monitor Report for real estate investments in both Midland and Odessa, good news for homeowners and investors, alike.

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