Real Estate Center at Texas A&M Posts Inventory Outlook
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One of the great things about the reports published by the Real Estate Center at Texas A&M University is that you don’t have to be an economist to understand them. Luis Torres, Jim Gaines, and Mark Dotzour all do a fantastic job of breaking down the information into digestible bits. I was very impressed by Torres when I heard him speak at the National Association of Real Estate Editors conference in Houston, and having previously worked with Gaines and Dotzour, I know that they are brilliant.
Of course, as the Real Estate Center publishes its annual outlook, we enjoyed taking a more in-depth gaze at inventory and what the numbers really mean. Months of inventory is a significant indicator for housing demand, and inventory can greatly influence pricing.
“Since late 2013, months of inventory has been less than four months in Texas, indicating a very tight housing market that puts upward pressure on home prices,” the report’s summary states. “The demand for homes has far outpaced the supply, especially in the major MSAs such as Austin and Houston. The development of lots and limited labor for new home construction have affected the supply of Texas homes for sale.”
Read the whole thing and take a look at the graphs, then tell us: Do you think there will be an increase in inventory for 2015 as investors unload properties to take advantage of high prices?
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If current in migration and job growth continue at current levels the market cannot build enough additional supply to create a surplus in housing. As a result demand will continue to escalate prices on rents and single family product will remain pressured. The locational corporate tax structure and lack of too much government will continue to serve our state and economy in a positive manner.