Login | Register
TexasGulfCoastOnline.com

Request Information

 
View Article

Current Articles | Categories | Search | Syndication

Why the Texas Coast real estate market is so hot
1091 Views :: 13 Comments :: :: Real Estate, Market Analysis
Why the Texas Coast real estate market is so hot

Baby Boomers, like birds are flocking to the Texas coast and for good reason, Texas is the most affordable – high growth state in the nation. And the lone star’s future looks even brighter with billions in major new capital investments coming to the state.

The Texas coast has become the nation’s most promising emerging vacation home market, according to the wisdom of our nation’s most successful investors and economists, and based on factual evidence from the leading housing market indicators and Government compiled statistics.


  • "What a man has to do to become rich in America is find out where people are going, get there first, and buy land" - Douglas MacArthur
  • "Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming financially independent. For real estate is the basis of wealth." - Theodore Roosevelt

Mike Stuart, CEO of TexasGulfCoastOnline.com, the region’s leading real estate portal, says:

“When you have the fastest growing state in the country, the most successful economy, the most affordable oceanfront housing, strong rental demand, steadily appreciating property values, a wide diversity of location lifestyles and housing products and an emerging resort market that is remarkably transforming at a record pace – you have the recipe for wealth creation on an unprecedented scale.”

“Our market fundamentals are strong and in most cases, you can cover your typical mortgage costs from rental income.” “With all the negative press on the nation’s housing woes, there have never been  better opportunities in such a clearly solid market poised for a great future.”

“We have the nation’s most must-see remarkable new projects under development - from ultra modern mega ocean front high-rises, to walk-able new-urbanism communities and affordable hurricane resistant modular homes.”

“Some unique attractions of our coastal area, besides the sub-tropical oceanfront climate, include the simultaneous beach and bay views you have from our barrier islands and that all our coastal resort markets are within the ideal 2 hours drive from our prosperous major metropolitan cities, including Houston, San Antonio, Austin and Dallas. Our major Metro’s alone can supply the sales and rental demands for our coastal markets”

“We also have huge external demand creating investment capital pouring into the region from innovative new projects like oil billionaire T Boone Pickens’s wind farm power plan, the already in-progress Texas crude oil refinery capacity investments of over 20 billion dollars, new nuclear plants, and the projected benefits of our recently approved NAFTA super highway


Kieran Trass, author of “Grow rich with the property cycle” and “An insider’s guide to real estate hot spots”

In his book, Investor-author Trass describes how to identify real estate hot spots and avoid real estate cold spots is the issue for all property investors. Real estate hot spots refer to certain defined geographic areas where, for a period of time, property investors can achieve supernormal capital gains. Real estate cold spots represent the opposite end of the spectrum: property investments in these areas will result in less than market returns. 

Kieran has spent many years specifically studying the property market and has found a number of key factors must be present for a hot spot or cold spot to emerge. He has also found that these factors apply regardless of the phase of the property cycle – boom, slump or recovery – and geographic location.

According to the criteria that Trass uses to identify real estate hotpots; he is describing the Texas coastal market to a "tee". His list of hot spot drivers include:
• Demographic factors such as: population increases, significantly improved amenities and surging market segment demand.
• Geographic factors such as: improved transportation, proximity to major population centers and waterfront locations.
• Social factors such as: improved visual appeal, new architecture and increased security.
• Economic drivers such as: strong rental demand, affordability and increasing property values.


Dr. Jim Gaines, research economist for the Real Estate Center at Texas A&M University, says:

“Texas is the most housing‐affordable, high‐growth state in the nation.” 

Affordable housing is the state’s ace in the hole in the predicted future high stakes real estate version of Texas hold ‘em. In fact, the state’s leading expert on residential real estate is betting housing affordability will be the “most significant growth stimulant” for Texas over the next 25 years.

Gaines says housing affordability is just one card in a deck stacked in the state’s favor. The other winning cards include lower cost of living and cost of business, greater employment opportunities and an appealing lifestyle.

“Events and circumstances point toward a Texas‐sized boom between 2005 and 2030,” Gaines writes in the latest issue of Tierra Grande magazine, a periodical sent to all the state’s real estate licensees. “The state’s population and economy — as well as its housing and commercial real estate markets — are poised to explode in volume and prices.”

“Population will be a key player at the table as Texas is projected to grow by 13.6 million by 2030. Growth and prosperity will spread throughout the state. Texas leads the nation in job creation. If Texas maintains its average employment‐to‐population ratio as expected during the next 25 years, the state will add another 4.5 to 5.8 million jobs,” says Gaines. “Job growth is expected to be stimulated by overall U.S. economic growth and enhanced by Texas’ employment‐friendly characteristics.”

More people and more jobs will lead to higher personal income. “Extending the long‐term trend that began in 1969 suggests the state’s total personal income could increase by $1 trillion by 2030,” says Gaines. “The 2005 Texas median household income of $42,139 could reach nearly $68,000 by 2030.”

Read Dr Gaines Report on Texas Real Estate Boom


Donald Trump University’s Real Estate 101 course on building wealth with real estate investments-

specifically identifies Texas. “As to my own investment objectives, I look for at least four good sources of return: (1) cash flows, (2) appreciation, (3) added value, and (4) amortization. In my view, many Texas and non-coastal Florida properties, commercial and residential, offer promise.”

He also goes on to mention “Real estate offers more people more opportunities than any other type of investment. Great economy, poor economy, high interest rates, low interest rates, boom market, bust market—it makes no difference. I have made money through all types of markets and economic conditions. And so will you—if you learn to think and act as a real estate entrepreneur. Achieving wealth, personal independence, and financial freedom requires only two basic conditions: 1. Guide your daily life with an entrepreneurial mind-set, character, and action plan. 2. Apply a systematic possibility-driven method to discover, create, and harvest real estate value.”

He also criticizes naysayers of the past who missed out on many great real estate opportunities by listening only to negative national news for advice. He warns not to be influenced by negative press and forecasters who have repeatedly been wrong in the past.

Take a quick trip through a few of their far-off-the-mark forecasts from years gone by:
• “The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.” ( Time, December 1, 1947)
• “Houses cost too much for the mass market. Today’s average price is around $8,000—out of reach for two-thirds of all buyers.” ( Science Digest, April 1948)
• “The era of easy profits in real estate may be drawing to a close.” ( Money, January 1981) and “The golden-age of risk-free run-ups in home prices is gone.” ( Money, March 1985)
• “If you’re looking to buy, be careful. Rising home values are not a sure thing anymore.” ( Miami Herald, October 25, 1985)
• “Financial planners agree that houses will continue to be a poor investment.” ( Kiplinger’s Personal Financial Magazine, November 1993) 

Now think ahead. Who enjoys the highest net worth today? Those fear-induced folks who believed the press or those proceeded to acquire properties with the proper research and information.



From a Wall Street article Journal published April 2008 “Why Low-Cost Beach Towns Will Continue to Lure Buyers”

Question: In the past few years, we have seen huge gains in the prices of vacation homes in Galveston, Texas. How much will the housing boom's demise affect secondary or vacation homes?

Answer: I still feel bullish on coastal cities, the nation's 78 million boomers drive this market, and with many of them close to retirement-- 330 of them turns 60 every hour -- it's very un-likely that interest will drop in low-cost beach towns.

Based on everything we see, “One thing is for sure, now is the best time to invest in real estate on the Texas coast. We have both bargains and new development opportunities that you'll find no-where else in the world.” – says Stuart.

Explore our site to find out more - or contact us - and we'll prove to you just how special our market is right now - and where the best opportunities are - and how you can take advantage of them.


Click here to see some of our most exciting new developments!

Some of the leading indicators that testify to the strength of Texas


Rating
Comments
By Realtor.org @ Wednesday, July 16, 2008
Home Buyers are Hopeful About Market

An online survey of potential home buyers found that 44 percent believe the real estate market will improve once the new president takes office.

In the meantime, 81 percent say they remain nervous about the current market.

Respondents cite a variety of barriers to buying a home: 28 percent say they are stymied by the cost of a down payment; 20 percent are concerned about their income level, and 31 percent say home prices are still too high.

Practical reasons motivate these potential buyers. A quarter say they need more space; 17 percent have gotten married, had a baby or experienced some other life-stage change, while 9 percent want to downsize.

Seventy-eight percent say they are willing to save or earn extra money for the down payment and are willing to compromise on amenities in their new home to make it more affordable.

Harris Interactive conducted the survey for Move Inc., which operates Move.com and REALTOR.com.

By Federal Reserve Bank Dallas @ Thursday, July 17, 2008
Houston’s economic expansion continued in May and its business-cycle index grew at an annualized rate of 2.4 percent.

The service sector led Houston’s growth with the professional and business services and educational and health services sectors posting the largest gains.

The energy industry continues to boost the metro’s expansion as it positively impacts other sectors of the local economy.

Existing home inventories recently declined by 1.5 percent from a year-ago.

Houston’s home inventory level is currently 6.5 months of supply, compared with 10.5 months of supply at the national level.

By Mike Stuart @ Thursday, July 17, 2008
Texas has no income tax and is ranked by the Tax Foundation near the lowest in the nation, having the 44th tax burden of the 50 states.

Texas also recently lowered property taxes in 2007. Gov. Rick Perry pushed a bill to provide a record $6 billion property tax cut.

By Wallstreet Journal MarketWatch @ Thursday, July 17, 2008
Strong Houston Economy and Demand for Waterfront Homes Are Rationale for new bay area development.

Historic Real Estate Inc. Introduces a Mediterranean-Styled Waterfront Village along the Texas Gulf Coast.

Houston-based real estate developer, Historic Real Estate Inc., introduced its newest development this week, The Peninsula Clear Lake(TM).

The Peninsula is a private Mediterranean-styled, waterfront village featuring 35 single-family homes and homesites and four family compounds with direct channel access to Clear Lake, Galveston Bay and the Gulf of Mexico.

Kiplinger Magazine recognized Houston as "the best city to live, work and play" in their July 2008 issue.

Newsweek Magazine added, "Houston's good fortune is largely a function of the current oil boom. But this isn't the type of gusher that led to busts in 1981 and 1986. Instead, Houston is experiencing a 21st-century boom fueled by a weak dollar and global growth."

By ElliotWave @ Thursday, July 17, 2008
Like Trump was saying - Mainstream economic wisdom changes its tune more often than a mocking bird.

Carefully read the headlines below and choose the one that doesn’t belong:

1. -- “US crude oil futures hit a record above $147 per barrel, with fears over the global economy gaining ground.” (Reuters, July 11)
2. -- “US Economic woes drive price of crude higher.” (Globe & Mail, July 12)
3. -- “The resurgence in crude prices reflects a deeper concern about the US economy’s future.” (AP, July 12)
4. -- “Oil prices plummet over $6 amid economic fears.” (Yahoo! Finance, July 15)

First, U.S. economic troubles sent crude oil prices up, up, up, and then down?

I’ll say it once, and I’ll say it again: Mainstream economic wisdom changes its tune more often than a mocking bird in an aviary.

These "experts" explain price action only AFTER it’s already been sung.

By Money Magazine @ Friday, July 18, 2008
Home Price Forecasts: What Your Home Will Be Worth Next Year?

According to Money Magazine, in Texas it will be worth more.

Home prices are expected to decline in 75 of the top 100 U.S. markets over the next 12 months.

Money Magazine recently put out a city-by-city home price forecast as well. Using data from Fiserv Lending Solutions, First American CoreLogic, city and county assessors, and realtors, the magazine determined that U.S. home prices will fall an average of 9.7 percent.

Miami is expected to see the most lost equity. Money Magazine is predicting a 24.9 percent drop.

Cities in Texas and New York are expected to fare the best.

Metro Area Median Price Forecast

Houston, TX $150,000 1.2%
McAllen, Texas $109,000 4.0%

Atlanta, GA $205,000 -2.3%
Baltimore, MD $264,000 -12.5%
Boston, MA $363,000 -10.5%
Chicago, IL $279,000 -6.8%
Cleveland, OH $145,000 -4.3%
Denver, CO $254,000 -10.8%
Detroit, MI $120,000 8.6%
Honolulu, HI $625,000 -16.2%
Jacksonville, FL $197,000 -9.6%
Kansas City, KS $148,000 -0.6%
Las Vegas, NV $277,000 -18.3%
Los Angeles, CA $528,000 -16.8%
Miami, FL $329,000 -24.9%
New Orleans, LA $158,000 2.2%
New York City, NY $471,000 -13.2%
Philadelphia, PA $200,000 -11.1%
Phoenix, AZ $237,000 -18.3%
Portland, OR $306,000 -14.7%
Riverside, CA $340,000 -16.9%
Rochester, NY $121,000 2.7%
Sacramento, CA $330,000 -8.9%
Salt Lake City, UT $229,000 -9.8%
San Francisco, CA $840,000 -10.1%
San Jose, CA $750,000 -12.5%
Seattle, WA $430,000 -9.0%
Springfield, MA $195,000 -9.5%
Stamford, CT $562,000 -13.9%
Stockton, CA $341,000 -16.8%
Syracuse, NY $126,000 2.6%
Washington D.C. $408,000 -13.2%
Wilmington, DE $259,000 -10.3%

By nvestor’s Business Daily, Kathleen Doler @ Friday, July 18, 2008
Investors With Cash Are Kings in Today's Market

Some are calling this the best market for investors since real estate tanked in the early 1980s.

By By Allison Wollam / Houston Business Journal @ Friday, July 18, 2008
HomeVestors ranks Houston second for real estate investing.

Houston was the second best market in the nation for real estate investing in the second quarter of 2008, according to a ranking by HomeVestors of America Inc.

Only Dallas was a better market than Houston during the quarter, according to the national franchise company, which specializes in buying, rehabbing and selling single-family homes.

Other Texas cities on the list were Fort Worth at No. 5 and San Antonio at No. 6. Filling out the Top 10 were Atlanta at No. 3; Denver at No. 4; Charlotte, N.C., at No. 7; St. Louis at No. 8; Milwaukee at No. 9 and Chicago and Kansas City, which tied for tenth place.

By David S. Jones Texas Real Estate Center @ Saturday, July 19, 2008
Texas’ real estate markets healthier than most

Texas’ real estate markets never caught the housing bust bug that spread like the flu across most of the United States. But now the doctors tell me that the Lone Star State is showing some of the symptoms that flattened residential sales nationwide.

The good news for Texas home sellers is that prices are holding. That’s in stark contrast to what’s happening in other parts of the country.

The national median home price fell by 1.8% in 2007, which was the first time a negative change had been recorded since the 1960s. By May 2008, U.S. home prices were already down another 6.8%.

In contrast, the Texas statewide median price for an existing home in Texas is $151,300, up 1.4% from May 2007.

By Globe Street @ Sunday, July 20, 2008
Texas' Economic Outlook Points to 25-Year Boom

Weathering out today's economic turmoil is easier in Texas than practically any place else in the US. And, a leading economist for the Real Estate Center at Texas A&M University says the climate's going to stay that way for a long time to come.

"I think Texas is poised for an all-out boom for the next 25 years," Dr. James P. Gaines, research economist for the College Station-based real estate center.

Gaines credits the state's strong showing, today and in the future, to job growth, which is leading the US, non-union labor and pro-growth attitudes.

Still, he says it doesn't mean Texas will escape unscathed from the nation's economic upheaval. "Texas housing markets are going to be spotty," he forewarns.

If Texas was a nation, we'd be ranked No. 11 in the world."

Gaines says the state clearly is poised for a long boom, economically and population-wise. And though he didn't come out and say it, his outlook is a calling card for a well-known saying in Texas that all newcomers hear: "What took you so long to get here."

By STEVE BROWN The Dallas Morning News @ Monday, July 28, 2008
Shopping for bargain resort packages

The worst housing slump in a generation could prove to be a windfall for some investors.
At least that's what buyers of surplus building company properties are betting.

As homebuilding companies dump billions of dollars in excess properties, investors are sorting through everything from excess lots to unfinished buildings in hopes of future profits.

"Some folks may think we are a little crazy trying to do this in an environment like this," said Dallas investor Dean Macfarlan, who bought a package of resort properties this spring from Centex Corp. "

But we got irreplaceable properties at a great price. That allows us time to allow the market to recover.

Mr. Macfarlan and his partners acquired five partially built second-home resorts from Dallas-based Centex in April. The communities are in the Texas Hill Country, on Galveston Island, in North Carolina and in New Hampshire.

The timing was right to buy great real estate with solid underlying value.

By Forbes Magazine @ Wednesday, July 30, 2008
Lots To Like In The Lone-Star State

Texas dominated our lineup of mortgage-worthy areas. Thanks to a business-friendly tax environment, many large corporations call the Lone Star State home, which creates jobs and tax revenue.

Houston, we don't have a housing problem.
The city's $152,500 median home sale price is up 6.6% from 2005. It boasts a low vacancy rate and an oil-rich economy. Throw in a bubbling entrepreneurial tech scene, and you've got four factors that put Houston on the top of our list of best places to buy a home.

Austin- The University of Texas campus provides young blood and research-related jobs to No. 2 city Austin. This state capitol is a hip area on the rise. The vacancy rate has fallen by 37.5% in the last 24 months to just 1.5%, despite a lot of building in recent years. And buying isn't much more expensive than renting. An average mortgage payment is $1,022.40, and average rent hits $767.

San Antonio, No. 5, and Dallas, No. 6, made the list thanks to affordable housing, which continues to appreciate. In both cities, the median home price hovers around $150,000, and a monthly mortgage payment of around $800 is pretty close to what one pays in rent. If you can pony up the down payment, these are great areas to live.

By CNBC @ Thursday, July 31, 2008
Texas Declared America’s Top State For Business by CNBC

The state's large population, abundance of natural resources, and diverse population and geography have created a dynamic economy. The energy industry, of course, is king, and is the reason the Lone Star State unseated last year's winner, Virginia.

We live in a world that moves faster than at any time in history," Gov. Perry said. "Knowledge and capital are rapidly being deployed to parts of the world where the right combination of talent,
technology, business climate, infrastructure and markets converge. I believe Texas is that place, now more than ever."

Click here to post a comment
 
Home MLS NewConstruction Statistics News Areas Rates Contact About
 
 
 

 Search
Copyright 2006-2010 TexasGulfCoastOnline.com
the voice for Texas Gulf Coast real estate
Sitemap