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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Homebuilder

Sure, new home construction is still hot in Midland, but with layoffs looming for many oil patch workers, some are wondering if historic high prices are headed for a precipitous fall. At least, that’s what Midland Reporter Telegram business columnist Rye Druzin is wondering:

Some Realtors have told me that part of the reason for the rapid increase in prices is because Midland’s real estate market stagnated during the 1990s and early 2000s because of low oil prices. Another reason is that with the oil boom that began in 2009, thousands of people streamed into Midland and Odessa, the only major population centers in the Permian Basin. This large influx of people, many of whom were being paid good oilfield wages, led to a severe housing shortage in an area that wasn’t prepared for the growth.

So, with low supply and high demand, prices went through the roof. It’s economics 101, really. The only real question is, with oil prices at $50 per barrel, will prices come back down to pre-existing levels? Or will demand hold out?

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CONDO VS HOUSE GRAPHIC

When it comes to deciding whether or not you want to invest in a condo or a single-family house, there’s a whole lot to mull over. Before stressing about homeowners associations and finding the perfect neighborhoods we decided to speak to Realtor Nancy Guerriero, who offered a wealth of sound advice.

“The biggest positive you have with a condo is the ability to lock and leave — go out with friends, travel, it’s so much easier than a house that needs to be watched over and maintained,” Guerriero says, “But at the same time you need to think about the neighborhood.”

She explains that there’s a basic checklist that most homebuyers go over before purchasing: What’s the school system like? Are there parks? Where’s the nearest shopping center? Grocery store? All of these components are essential, and as vital as exploring a condo’s homeowners association (HOA).

“The biggest issue is the governing power of the building, or HOA,” Guerriero emphasizes. “If you don’t have a good one, it’s bad news.”

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