A unique situation in Texas
COLLEGE STATION (Real Estate Center) - Dr. Mark Dotzour, the Real Estate Center's chief economist, discussed the Texas housing market on Tuesday's edition of NewsHour with Jim Lehrer. The 12-minute segment is available online.
Q: RAY SUAREZ: Mark Dotzour, how does Texas resemble what you just heard from Massachusetts and California? And how does it resemble the nationwide trends?
A: MARK DOTZOUR, Texas A&M University: Hello, Ray. It's good to visit with you. We down here in Texas we have a real, unique situation going on right now. We've got a combination of very strong job growth. It's basically double the national average. We've got home price appreciation that's going up at an increasing rate in many of our metropolitan areas.
And at the same time, we've got population growth. I noticed just last year we had 570,000 new people come into the state of Texas. And at the same time, the home builders have cut back on production, as well, like you've previously heard. And so we're in kind of an interesting position, where home builders are cutting back on their building, but inventory levels of homes for sale are quite low. And that's why we're seeing the good rates of price appreciation in many parts of Texas.
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