The Texas property market is booming at the moment. The main cities in Texas depend on different industries, but all are experiencing the same demand for housing.
Dallas Leads the Way
Texas is now one of the hottest real estate market places in the United States. Dallas in particular is leading the way with house prices rising by as much as 8.7%. Many potential buyers are currently looking for the services of a professional real estate company or an apartment locator near Dallas.
These price increases are up there with those occurring in San Francisco and Denver. Even lower quality homes are selling quickly. This is due to a lack of supply in the city.
However, this phenomenon is not confined to Dallas. Property prices in Houston are reaching record levels. Many analysts are claiming that it’s now one of the most overvalued housing markets in the country.
Oil is not Fueling this Property Boom
To many outside observers, this is an unusual situation. Oil prices have fallen dramatically in recent years. This trend looks set to continue because of many external factors. The money used to pay for properties in Texas is coming from some other industries.
Texas has attempted to change its dependence on the oil industry so that an oil crisis does not have as much of an effect on the economy as it once had. There are many incentives for new businesses. Ten of the fastest growing cities in the United States are in Texas. It’s now considered to be the best place in the US to do business.
More private sector jobs have been created in Texas than anywhere else in the United States in the last two decades. These include a large number of high-tech and finance-related organizations. Education standards have also risen to meet the needs of the thousands of new businesses that have emerged in recent years.
Main Reasons for the Boom
There are many good reasons to move to Dallas. All of the commercial activity taking place means there are many employment opportunities in Dallas and its surrounding areas. Dallas is also an inexpensive place to live, has an excellent transport system and its residents have a high standard of living. Property currently costs less than many other places so more people are interesting in moving there. However, this demand is exceeding the current supply which is leading to rising prices.
However, Texas has experienced similar situations before when oil prices reached record levels. The supply of property increased to meet rising demand. This resulted in a bust that many in Texas are still recovering from. Despite this, Dallas seems to be protecting itself more from this problem by diversifying its industries. The same is not true for Houston, which still depends greatly on large energy businesses and has not embraced other industries like Dallas has.
Despite this Dallas and Houston have one thing in common. The demand for property can be easily met if required. Each city is surrounded by millions of acres of land that could be used for future developments. If this happened, it could lead to another property bust.
Even now, supply is starting to meet demand as more developments come on the market. Falls in oil prices will affect house prices much more in Houston than they will in Dallas.
If a bust does occur, it will be a perfect opportunity for house hunters to pick up some amazing deals. Extremely high quality properties are usually built in these oil cities when a boom takes place, and many will have to be sold at reduced prices.