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 in the state saw much bigger gains, like North Texas.

The Dallas-Plano-Irving metro area ranked No. 2 in job creation in the state (Midland was No. 1), followed by Odessa, Beaumont-Port Arthur, Austin-Round Rock, and San Antonio-New Braunfels. Fort Worth-Arlington ranked No. 7, with 2.7 percent job growth.

“The North Texas economy is more dependent on the U.S. economy, so it’s not energy-based, compared to the Houston or Midland-Odessa economy, where energy has a bigger weight,” said Real Estate Center research economist Luis Torres. “Because the U.S. economy is growing and doing better, you’re seeing that reflected in the Dallas economy.”

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

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

“The correlation between the Dallas economy and the U.S. economy is very high, and the main reason is because Dallas is a transportation hub and all the goods and services that pass in the state use Dallas transportation systems,” said Real Estate Center research economist Ali Anari.

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Homes are flying off the market, often before a sign is put in the yard. Still, Texas metro areas could experience a slower market toward the end of this year.

Homes are flying off the market, often before a sign is put in the yard. Still, Texas metro areas could experience a slower market toward the end of this year.

Corrected figures from the National Association of Realtors show that Dallas home sales have increased 1.82 percent in the first quarter of 2015 while median price grew 11.99 percent.

Statewide figures show a strong start to 2015 for Texas home sales, with a year-over-year increase of 4.16 percent. Inventory is still an issue, with available homes dropping to an all-time-low of just 3.1 months, which is less than half the supply required for a balanced housing market. That’s a precipitous 8.82 percent decline from the first quarter of 2014. More detailed figures are available through the Texas Association of Realtors.

“Homes are being built as quickly as possible, yet most are not in the price range where inventory is needed most – the entry-level market,” explained economist Jim Gaines of the Real Estate Center at Texas A&M University. “Interest rates are still low, but tight lending standards, rising home prices, and slim inventory have created a tough market for first-time homebuyers.”

It sounds like a good problem to have, right?

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With Western Texas Intermediate oil hovering around $45 a barrel, folks have been speculating about new home construction in Midland-Odessa and how layoffs and budget cuts might affect the spectacular boom of the past few years.

But while economists might raise a red flag, local homebuilders say pent-up demand and a more diversified economy are keeping the phones ringing and people signing on for new home construction.

“The demand is still the same as it has always been—everyone wants their home built yesterday,” said KC White, owner and president of KC White Homes, Inc. “More people outside of the oil world are calling my phone. There are more than just oilfield-related jobs here.”

Read the whole story over on MidlandDirt.com!

Dallas Skyline

Holy crown moulding, Batman! Can you believe this? Bloomberg News just published a story saying that of the top 20 housing markets in the good ‘ol US of A, Dallas performs better than every single one of them!

Since the loud pop of the national housing bubble bursting, Dallas has recovered and gone on to thrive, the story says:

“We didn’t have a bubble in the first place, so there was no real collapse in prices,” said Mark Dotzour, chief economist at the real estate center at Texas A&M University in College Station,Texas. “I expect we’ll be in this seller’s market that’ll lead to higher appreciation than normal this year and next.”

Dallas is the Case-Shiller index’s only city in Texas, a state where the housing industry has flourished amid economic growth, few environmental constraints and abundant land. The Dallas-Fort Worth area added 104,900 non-farm jobs in April from a year earlier, the most after the New York City area’s 160,000 jobs and Houston’s 111,200, according to the Bureau of Labor Statistics.

“Underpinning the housing sector’s gains is a broad-based expansion of the overall Texas economy,” according to a June 13 paper by D’Ann Petersen, a Federal Reserve Bank of Dallas economist, and Christina Daly, a research analyst. “Stronger-than-average employment growth and consistent in-migration should continue boosting demand for homes and apartments.”

Agents, are you having your best sales year ever? Tell us about it in the comments!

Dallas Skyline

Holy crown moulding, Batman! Can you believe this? Bloomberg News just published a story saying that of the top 20 housing markets in the good ‘ol US of A, Dallas performs better than every single one of them!

Since the loud pop of the national housing bubble bursting, Dallas has recovered and gone on to thrive, the story says:

“We didn’t have a bubble in the first place, so there was no real collapse in prices,” said Mark Dotzour, chief economist at the real estate center at Texas A&M University in College Station,Texas. “I expect we’ll be in this seller’s market that’ll lead to higher appreciation than normal this year and next.”

Dallas is the Case-Shiller index’s only city in Texas, a state where the housing industry has flourished amid economic growth, few environmental constraints and abundant land. The Dallas-Fort Worth area added 104,900 non-farm jobs in April from a year earlier, the most after the New York City area’s 160,000 jobs and Houston’s 111,200, according to the Bureau of Labor Statistics.

“Underpinning the housing sector’s gains is a broad-based expansion of the overall Texas economy,” according to a June 13 paper by D’Ann Petersen, a Federal Reserve Bank of Dallas economist, and Christina Daly, a research analyst. “Stronger-than-average employment growth and consistent in-migration should continue boosting demand for homes and apartments.”

Agents, are you having your best sales year ever? Tell us about it in the comments!