Today's Economy

Houston Real Estate and Today's Economy

In the 1980s, Houston economy was more like a one-horse race, with heavy dependence on oil & gas based industries. However, the city authorities had to change their outlook, when the oil prices bottomed out in the 80s. Shrinking jobs as well as the stunted economic growth of the city made them do some rethinking. The diversification in aerospace and biomedical industries helped in achieving some amount of revival. Still, the sharp fall in oil prices in the latter half of 2008 and the recession in the entire United States spurred by the shock of failed home mortgages had once again affected the Houston economic growth

The Housten real estate industry had also been seriously hit by the turn of events. The existing Houston home sales had dropped 33% since November 2007. New home sales had fallen 30% in 2008. As a result, the median house prices had dipped more than 7% in the same period. Financing of Houston home buying and real estate related developmental projects had become very tight. The only bright spot is the increase in the construction in multifamily and retail sectors. However, the higher supply in the already weak Houston economy would only lead to price pressure on apartment sales and rentals, along with lower prices in retail market related real estate. This might look like something negative but in reality, it is a great opportunity. In spite of the recession, the recent expansion in several projects like that of Vestas, the world's biggest manufacturer of wind-turbines, is helping the Houston economy to stage a recovery. In the 12 months until August 2008, the metro area in Houston saw an addition of nearly 53,000 jobs. About 900,000 new residents in the last 7 years in Houston show that the city had been witnessing steady growth. The realestate and marketing in Houston is poised to play a major role in the forthcoming growth even in this current recession. we have the knowledge and expertise on all matters concerned with Houston real estate. If you wish to make money in Houston real estate boom, talk to us. We would furnish the right counseling for your success in Houston home sales.