Although the level of foreclosed bank, government and HUD homes in Texas is still considerable, an economic forecast report asserted that the region is leading the nation in terms of economic recovery. According to a report by the BBVA Compass, the state's economy is benefitting from a steady rise in the prices of oil.
Corpus Christi foreclosure auctions and foreclosed properties in various areas of the state have weighed down the region's economy in the past two years or so, but economists are seeing marked improvements in the area, although the recovery is going at quite a slow pace.
BBVA has stated that aside from rising demand for energy, the state is also benefiting from rising job numbers in the private sector, minimal fiscal concerns and strong export numbers, particularly in relation to coal and petroleum products. The state's economic recovery is also expected to continue until 2011 since properties under foreclosed Texas home auctions are relatively fewer compared with other states.
Foreclosed bank and HUD homes are still a major concern, but the housing market of Texas is considered relatively steady when compared with other regions. This, along with other reasons cited earlier, sustains the slow recovery of the state, economists have asserted. The state's economic recovery has accelerated in the second half of the current year while most U.S. states suffer from further economic declines.
The BBVA economic report predicts that the gross domestic product (GDP) of Texas will rise by 3% by the end of 2010 and will jump by 2.8% by next year. These projected rates are much better when compared with the predicted U.S. average GDP rates of 2.7% for 2010 and 2.3% for 2011. Prices of regular dwellings and residential properties under foreclosure auction lists also remain stable along with receipts for property taxes, providing the state with some funding cushion against tax increases and budget cuts.
Fiscally, Texas is expected to incur a budget deficit of 10% of expenses for 2011, which means that it will have the 16th lowest deficit among 46 regions for which state budget deficits have been projected. However, despite this expected deficit and the continuous entry of foreclosed bank and HUD homes into the housing market, Texas is expected to do well until 2011.