Texas was among the last states in the United States to be affected by recession, and certainly the first
to bounce back. In fact, Texas stands in the top ten lists of the best places for business and careers, conducted by Forbes. Texas has indeed been adding jobs faster when compared to other cities
in the country. But what’s the future of the Texas housing market? Mike Kergosien speaks about the housing market in Texas.
Even as several states became victim to the housing bubble, Texas remained largely unscathed. The conservative approach of the state that restricted mortgage borrowing to 80 per cent of the appraised value has a large role to play in this.
For some time now, Texas has been in the centre of a long term process of an employment shift. Low cost of wages, relatively cheaper housing and low cost of living in Texas have been a contributory factor. This has also resulted in Texas being voted as the preferred city for relocation. Those who relocate do not mind that the wages that they earn are far less than the wages they earn elsewhere, because houses here are far more affordable than they are throughout the country.
The state’s oil reserves have also played a major part in the steady employment rates. A few years ago, a barrel of oil was sold for $25. Over the last two years oil prices have risen and stayed steady at over $80 a barrel. Technological breakthrough has resulted in the opening up of several oil and gas fields all over the state.
Another factor that has played to the advantage of the state is exports. Trade between the United States and Mexico has grown up with factories in El Paso working overnight to keep up with demands.
Texas sits wise largely because of its lessons learnt from the recession it experienced in the late 1980’s. Governors who followed this period worked with business leaders to diversify the economy. The recession also resulted in strict legislation to control the mortgage market.
About Mike Kergosien: Director of Operations at the American Home Free Mortgage has in-depth knowledge about the housing market in Texas.
To know more, visit, http://www.mikekergosien.com/