The Sun is Rising on the Texas Coast Again
The Lone Star state's coastal resorts are showing signs of market recovery following last year's humiliating hurricanes and the effects of the national recession.
Backed by billions of dollars from Insurance companies, federal and state funding, and foreign investors; AND, a large wave of Texas metro retirees looking seaward, the Texas coastal markets are poised for a prosperous and more sustainable market for years to come.
- [Insurance and FEMA investments for the Texas coast are estimated at over 10 billion dollars and that is sure to spur local economic activity]
- [The Association of Foreign Investors in Real Estate (AFRIE) says 73% of equity investors plan to funnel more money into the U.S real estate market this year and 58% plan to increase funding - also they believe the U.S. market will rebound first]
A silver lining of the hurricanes, which hit most of our coastal resort markets, was the removal of older structures built before the new storm resistant building codes which now require farther setbacks from the beach, higher elevations and more wind resistant construction standards. The massive storms also proved that our
modern high rise condos and new residential home designs are indeed resistant to wind and flood damage, suffering only minor consequences.
Galveston Island has already placed a new blanket of beachfront sand along most of the seawall, as has South Padre Island - and construction activity is at nationwide leading levels, creating strong rental demand to augment short term tourism rentals.
We already discussed in last months news blog how
demographic trends uniquely favor the Texas coastal markets for the future, while the rest of the nation is forecasting a much longer recovery.
With record low mortgage rates, the federal government's economic stimulus programs, and the huge pent-up demand for Texas coastal property about to burst, the time to invest in the right locations and products on the Texas coast has never been better. The best selections and most affordable opportunities are still available.
With inflation concerns predicted by respected experts like Warren Buffet, the enduring value of rare and unique real estate, like that found on the Texas coast, with its huge built in rental market from its nearby metro areas, makes
carefully chosen Texas coast real estate an excellent hedge against inflation.
South Padre Island was the first of our Texas coast resort markets to be effected by the national downturn in real estate and is the first to show strong signs of recovery.
Just look at the this report on South Padre's sales. Sales and Median price are up - time-on-market and inventory levels are down.
The 2009 market stats for South Padre are surprisingly strong.Act now, while our best bets last - too many market fundamentals nearly ensure that they won't be around for long and you'll be kicking yourself in the rear for not taking advantage of this unique moment in time.
Fed Chairman Believes The Recession Will End by Year End (2009)
Ben Bernanke sits down for rare interview with CBSNews’ 60 Minutes, discusses, banks, unemployment, American’s frustrations over bailout money, and how we will avoid the next Great Depression
In a rare interview with Ben Bernanke this past Sunday on CBS News’ 60 Minutes, the Fed Chairman said he sees the recession ending by the end of this year.
When asked by 60 Minutes Corresponded Scott Pelley, “”Mr. Chairman, I’m gonna start with a question that everyone wants me to ask: when does this end?” Bernanke said:
"We have a plan. We’re working on it. And I do think that we will get it stabilized, and
we’ll see the recession coming to an end probably this year. We’ll see recovery beginning next year. And it will pick up steam over time."