Facts, Findings, and Kind Words About Texas From Leading Economist
These days, it can’t be easy always being the bringer of such bad news. But even economists—those long-suffering sages of the dismal science—are finding life a little bit easier in Texas.
At least that’s the sentiment echoed by one top home-building economist, speaking in Dallas a couple weeks ago.
“I don’t think I’ll get any tomatoes thrown at me today,” said David Crowe, chief economist for the National Association of Home Builders, last week to a group of Texas home builders, according to the Dallas Morning News . “Be thankful you are in Texas and not in Michigan or southern Florida. Your housing market has not suffered nearly as much as many areas of the country.”
For the most part, Crowe painted a weak, but relatively bright picture about local markets. For example:
— Concerning housing starts, Crowe estimated that 600,000 new projects will break ground nationwide in 2010, up from just 550,000 last year.
— Some regions should be ripe for a construction boom—North Texas is facing a 20-year low on housing inventory of new homes to meet the needs of a young and growing work force—but are hampered by tight credit and anxiety about the future economy.
— There is a glut of available houses, but it exists almost primarily in unsold and foreclosed housing. Nationwide, the new home inventory is at a 42 year low.
Overall, Crowe thinks there’s still more pain to come—even in a bright market like Dallas. According to the DMN:
“What I worry about a lot and particularly in a place like Dallas is that the builders are unable to borrow money to get the stuff on the ground to be ready for when things inevitably turn around,” Crow said. “There is at some point going to be a real pop in new-home demand – particularly in a place like Dallas where the distress isn’t so bad.”
[…] “I think there will still be more builders that fail, unfortunately, because it’s going to be such a slow climb out,” he said. “I tell them to hang in there. It will come. It’s just around the corner.”
So if it’s been a dream to build your own home, now might be the right time to do so. Contact one of our new Dallas home loan mortgage experts for more information.