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Texas Coast Poised for Real Estate Boom in 2008
3426 Views ::
7 Comments :: :: Gulf Coast, Real Estate |
Texas Coast Poised for Real Estate Boom in 2008 A tidal wave of real estate activity and buyers has been spotted off the Texas coast. See the top 10 reasons and find out how you can prepare for the coming storm.
Top 10 reasons why the Texas Coast real estate market will boom to record levels in early 2008- Baby Boomers from thriving Houston/Dallas/San Antonio/Austin are coming in mass starting in 2008
- Investors from California/Florida are now turning to Texas
- Huge capital projects in Beaumont area for energy plants - 3.6 billion
- Federal Spending on the Border Security Fence – 3 billion, construction starts in fall 2007 for Texas
- Strong rental demand for coastal properties for massive local and growing populations within driving distance to the coast.
- Texas Exports to Booming China’s economy are skyrocketing.
- New high-end developments transforming the resort markets to accommodate all the new and different buyer profiles.
- State expenditures to improve and protect the coastlines with beach replenishment, geo-tubes and other major coastal initiatives already funded or soon to be funded.
- The affordable prices for Texas coastal property and steady appreciation rates. We are 1/3 of California’s and half price of Florida’s median pricing for ocean front property and our newer products are on par.
- Consumer Confidence Index Climbs to a Six-Year High and Insurance companies are now returning to the Texas Coastal markets.
1 Baby Boomers from the thriving metropolises of Houston, Dallas, San Antonio and Austin are coming in mass starting in 2008
| The North Carolina Center for Creative Retirement, which is nationally known for tracking retirement migration trends, studied 2005 data from the U.S. Census Bureau on the number of Americans who move out of state to enjoy their golden years.
Texas, which was the No. 4 destination based on 2000 data, has leapt past No. 2 Arizona and No. 3 California. Texas attracted 6.8 percent of America's migrant retirees in the 2005 data, up from 4.8 percent in 2000.
Florida's share is much higher but shrinking. It drew 16.6 percent of retirees in 2005, down from 19.1 percent in 2000. "Older Americans who are looking to relocate upon retirement continue to move to sunny climes, but Texas has gained an edge over other Sun Belt states," said Bill Haas, the author of the study.
Texas' lower living costs give it a distinct advantage, he said, especially over states like California and Florida, where home price increases in the last few years hit bubble proportions. Baby Boomers are realizing that their money can be stretched farther in Texas.
Just as the baby boomers have impacted every other age group they have moved through, they are about to reinvent what it means to be old.
Baby boomers have the resources and soon will have the extra time to kick off a discretionary spending spree the likes of which the world has never seen.
As pointed out by Ken Dychtwald of Age Wave, the 50-and-older group currently earns almost $2 trillion in annual income, controls more than $7 trillion in wealth, owns 77 percent of all financial assets in America and represents 50 percent of all discretionary spending power.
Home ownership is important for the financially savvy group, which Focalyst, a market research firm that is a joint venture of AARP and the Kantar Group, dubs “Boomer Elites.”
Not only do almost all Boomer Elites own their own home, but they are more likely to own multiple homes. Approximately 21 percent of the Boomer Elites own at least two homes, and 7 percent said they plan to purchase an additional home. Among all boomers, only 8 percent own a second home and 2 percent plan to buy a second home.
Read why Texas is one of the top ten places to retire.
| 2 Investors from California and Florida are now turning to Texas
“Despite the national slowdown, Texas is still strong,”
| “Despite the national slowdown, Texas is still strong,” says James Gaines, Ph.D., research economist with the Real Estate Center at Texas A&M University. “There’s no reason prices shouldn't continue to rise despite the increase in foreclosures and the slowdown in transactions, construction, and new-home starts.” By comparison, home sales are down in Miami and median prices are falling throughout the state. In January sales were down 27 percent across the state of Florida compared to last year, and condo sales were down by 30 percent as well. Miami posted a 9 percent decline in single family home sales and a 27 percent decline in condo sales.
Within Texas, there is a wide variation in appreciation rates in the 25 metropolitan areas. Combined with low interest rates, strong job growth and limited supply on new housing in many markets, Gaines says some of the appreciation rates are astounding.
While some Texas properties have shown an outstanding rate of appreciation, the median price is still low when compared to Florida and California's median prices as shown by the graph below. Read More About Texas Market Compared To California and Florida
| 3 Huge capital projects in Beaumont area for energy plants - 3.6 billion
"Construction employment is expected to peak at 1,300-1,500 workers" | The Valero Energy Corporation announced that they are going to spend about $2billion to build a new plant in the Beaumont area and Eastman Chemical said that it plans to operate and invest in two new plants on the Gulf Coast -- including one in Beaumont, Texas.
Eastman Chairman and CEO Brian Ferguson say the new $1.6 billion plant slated for Texas would be located in Beaumont, Texas. Eastman expects the regulatory permit application process to begin later this year, and construction is expected to be under way by early 2009.
Construction employment is expected to peak at 1,300-1,500 workers, with permanent employment expected to be approximately 250. Eastman expects to have an equity position of as much as 50 percent and to announce a co-investor in the near future.
The trickledown economics of 3.6Billion is enormous. The part that goes into the local economy should circulate 6 times according to the rule of thumb.
Read More About the new plants coming to Beaumont!
| 4 Federal Spending on the Border Security Fence $3 billion, construction starts in fall 2007 for Texas
“…to pay for new manpower, technology and fencing…” | 
The US Senate approved to add $3 billion to the homeland security spending bill to pay for new manpower, technology and fencing to bring the U.S.-Mexico border under operational control within two years.
Texas is an important factor in the issue of homeland security. The Governor recognizes that local law enforcement leaders are the "on-the-ground-experts" in the best position to develop and execute meaningful strategies. Although border security is a federal responsibility, Texas has an obligation to protect its citizens.
BREAKDOWN ON WHERE MONEY WOULD GO
The money would let the Department of Homeland Security:
- Increase the Border Patrol to 23,000 agents by 2012
- Construct 700 miles of fencing at the U.S.-Mexico border and 300 miles of vehicle barriers.
- Permit the purchase of four unmanned aerial vehicles to scan for illegal crossers, and add 105 ground-based radar and camera towers integral to the operation of a "virtual" fence.
- Nearly double the detention space for apprehended illegal immigrants to 45,000 beds.
- Add 6,000 Immigration and Customs Enforcement agents, 2,500 more Customs and Border Protection officers and 1,000 investigators to combat alien smuggling.
The Texas Border will not be the only area receiving money from Homeland Security. The U.S. Department of Homeland Security officially announced that the Houston area will receive $25 million in anti-terrorism funding this year, a 50 percent increase over 2006.
Read More ...
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Strong rental demand for coastal properties is consistent because of massive local and growing populations within driving distance to the coast. | Rental demand for single family homes on the Texas Gulf Coast is strong and often the demand exceeds supply, particularly in the summer season. Short term rentals for single family homes are booked solid during the summer season (May – Sept) and about 50% of the time during the off season.
Our newest network site affiliate, SwedesRealEstate.com, operates the largest property rental agency with 275 rental properties and is recording record levels of rental demand interests and books all their residential vacation home properties for the busy season each year within 2 months!
Rental Rates For The Top 3 Texas Gulf Coast Destinations

| 6 Texas Exports to Booming China’s economy are skyrocketing. Investors from California/Florida are now turning to Texas.
"Texas is a major exporter to China and our Ports and Port cities are benefitting from that activity "
| While it isn't always possible to guess exactly what the market will do, there is no reason why you can't come close if you carefully study the market you are thinking of buying into. A strong and diverse economy is a good indicator of how the real estate market will function.
China is becoming the No. 1 economy in the world and it needs raw materials. Texas is a major exporter to China and our Ports and Port cities are benefitting from that activity which appears to have no end in sight with the population and economic power of China.
 You can see on the graph that when comparing the number of exports to California, more exports have been made from Texas since 2002. The increase of exports has boosted the state’s economy as well as prompted port expansions and improvements.

Read More...
| 7 New high-end developments are transforming the resort markets to accommodate all the new and different buyer profiles.
"This new way of living combined with the increasing number of second home buyers coming from all over the world is making the Texas Coast into a Texas riviera. " | An example of the resort market transformation is New Urbanism. New urbanism is a highly successful new neighborhood development concept more typically seen in Florida and California, but now being implemented in all of the Texas coast real estate markets.
This new way of living, described below, combined with the increasing number of second home buyers coming from all over the world is making the Texas coast into a Texas riviera.
The principles of New Urbanism can be applied increasingly to projects at the full range of scales from a single building to an entire community.
| 1. Walkability | Pedestrian friendly street design and accessibility to most things from a walking distance. | | 2. Connectivity | Interconnected street grid network disperses traffic & eases walking. | | 3. Mixed Use and Diversity | A mix of shops, offices, apartments, and homes on site. | | 4. Mixed Housing | A range of types, sizes and prices in closer proximity. | | 5. Quality Architecture | Emphasis on beauty, aesthetics, human comfort, and creating a sense of place. | | 6. Traditional Neighbor Structure | Public space at center Importance of quality public realm. | | 7. Increased Density | More buildings, residences, shops, and services closer together for ease of walking, to enable a more efficient use of services and resources. | | 8. Smart Transportation | A network of high-quality trains connecting cities, towns, and neighborhoods together. | | 9. Sustainability | Minimal environmental impact of development and its operations. | | 10. Quality of Life | Taken together these add up to a high quality of life well worth living, and create places that enrich, uplift, and inspire the human spirit. |
Developments such as Cinnamon Shore in Mustang Island, The Shores in South Padre Island and Laguna Harbor in Port Bolivar are some examples of New Urbanism throughout the Texas Gulf Coast.
Read More About New Urbanism...
| 8 State of Texas Created the Coastal Erosion Planning and Response Act (CEPRA) to improve and protect the coastlines.
“Geotubes were also used for Erosion Control and Storm-Surge Protection on Bolivar and Galveston Island with great success” | State expenditures to improve and protect the coastlines with beach replenishment, geo-tubes and other major coastal initiatives have already been funded or are soon to be funded. Stricter building codes for coastal homes have also been implemented. As a result, insurance companies are now returning to the coastal markets.
The Texas Coastal Zone is home to approximately 5.7 million people, about 24.9% of Texas’ population, and plays a vital role in the lifestyles and livelihoods of Texans. Its natural and commercial resources support the State’s economy and continue to attract new businesses, new residents, and tourists.
In 1999, the 76th Texas Legislature passed Senate Bill 1690, creating the Coastal Erosion Planning and Response Act (CEPRA) and enabling development of the first-ever coastal erosion program in Texas. Implemented by the Texas General Land Office, the CEPRA program entails a coordinated effort of state, federal, and local entities to conduct coastal erosion response projects and studies.
The CEPRA program has established a working relationship with the USACE on the beneficial use of dredged material projects, such as the beach nourishment projects at South Padre Island and Bolivar Rollover Pass. Geotubes were also used for Erosion Control and Storm-Surge Protection on Bolivar and Galveston Island with great success.
$25 million was alloted for Texas Beaches. Jim Suydam, GLO (General Land Officer) press secretary, said the increased funds will have a positive effect for South Padre Island, which has been applying for grants from the GLO for a beach renourishment project.
He said an estimated 55 million people visit Texas beaches annually and 10 million visitors attend state parks. “The sad thing is that the Texas coast historically has been neglected,” Suydam said. “And it is our top priority to rectify that.”
Read More...
| 9 Steady Appreciation Rates in Texas Coast Compared To California and Florida.
“Texas prices are 1/3 of California’s and half of Florida’s median prices for oceanfront property”
| Texas’ affordable prices for coastal property and steady appreciation rates give investors a sense of security regarding property retaining and appreciating in value.
In January of 2005, the California Association of Realtors found that only 20 percent of the people within Solano County could afford to buy a median priced home of $389,000. The median price of homes has risen since then and based on the difference between incomes and local home prices, Consumer Reports recently rated this market as the second most overpriced market in the San Francisco Bay Area, and ninth in the country.
Currently, Texas prices are a third of California’s and half of Florida’s median prices for oceanfront property. The homes and condominiums that are being developed in the State of Texas are on par with those of the other two areas, property taxes are lower, and waterfront land availability is higher in Texas.
 Read More...
| 10 Consumer Confidence Index Climbs to a Six-Year High and Insurance companies are now returning to the Texas Coastal markets.
| A forward-looking indicator based on pending sales of existing homes suggests the market may stabilize in the months ahead, according to the National Association of Realtors.
Although the Pending Home Sales Index, based on contracts signed in June, rose 5 percent to 102.4 from the downwardly revised May index of 97.5. This is the largest monthly gain in more than three years, since a 6.1 percent increase in March 2004, according to NAR.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
In addition to the good news regarding the real estate market, The Conference Board has reported that according to a monthly survey conducted by TNS, the world’s largest custom research company, consumer confidence bounced back in July to highs not seen in nearly six years.
The Consumer Confidence Index climbed to 112.6 this month from 105.3 in June which hasn't been this high since hitting 114 in August 2001.
"An improvement in business conditions and the job market has lifted consumers' spirits in July," Lynn Franco, director of The Conference Board Consumer Research Center, said in a prepared statement. "Looking ahead, consumers are more upbeat about short-term economic prospects, mainly the result of a decline in the number of pessimists, not an increase in the number of optimists. This rebound in confidence suggests economic activity may gather a little momentum in the coming months."
This increase of consumer confidence on the national economy greatly impacts the real estate sector because if people's confidence is high they feel more secure about buying a house knowing that there will be jobs available for them to maintain an income that will sustain their style of living in the years to come.
Insurance companies' confidence in making a profit by insuring homes in the Gulf Coast has risen. For example, having dodged the big financial hit that other insurers took in last year’s Gulf Coast hurricanes, CNA Financial Corp. is now looking for opportunities in that region. Property insurance rates have risen substantially in coastal areas since the hurricanes of 2005, and CNA sees that as a growth opportunity, helping compensate for the lower pricing in other parts of the country. |
The Texas Gulf Coast is attracting the attention from not only future retirees and vacation goers but also from large investors and developers who want to get in while prices are still relatively low compared to other coastal areas in the nation.
Since we went live late last year, we have had an incredible response nationwide and are already receiving over 23,000 unique visitors a month who are generating over 325,000 page views a month. It took us over two years to develop the systems and staff - at a cost of over a million dollars.
TexasGulfCoastOnline.com has witnessed massive increases in our website traffic as well as potential buyers. We now have over 4000 registered potential buyers for the Texas Gulf Coast and over 4 million page views on our sites, these numbers are growing rapidly every day.
Mainstream media coverage about the Texas Gulf Coast has been lacking because there was not a credible source in the past that compiled, analyzed and reported the real estate sales and activities for the region.
Since TexasGulfCoastOnline.com has been in place, we are starting to see that change.
The Texas Real Estate Center and Money magazine are using our sales analysis and news to help broadcast the message out about the future of the Texas Gulf Coast. A Major article from the Texas Real Estate Center comes out next issue. Money Magazine has already referenced our data in two issues and we are preparing for article releases with them.
Other national news sources such as Globe Street have contacted us just two days ago for analysis data and market news. This national attention will help expose the Texas Gulf Coast Market which is on the verge of a real estate market boom.
Here are some opinions from some of the major players developing, selling and marketing the Texas Gulf Coast:
Here are just some of the exiciting new developments on the Texas Gulf Coast:
 | Audubon Village: offers six unique house plans, with amenities to suit your individual tastes. All homes in Audubon Village will have striking panoramic views of pristine, undisturbed Texas coastal prairie, along with magnificent sunrises over the Gulf and beautiful sunsets over the Bay.
Prices for homes complete with lot from $132K! |  | Laguna Harbor: is for those who find refuge at home but escape to the sea. You'll discover numerous home site options incorporating a self-contained, new urbanism philosophy. Whether you prefer to build your own custom home or allow them to create an extraordinary dwelling for you, all of their properties feature an area for private boat docking conveniences.
Prices from $125,000 to $750,000 | | Palisade Palms: From the exquisitely appointed atrium lobby to your own residence with its spectacular view, this is a place that feels like home and yet seems so much like a vacation hideaway. You’ll always feel comfortable and welcome in the luxurious ambience of Palisade Palms.
Priced from 400K to 1.65 million dollars.
|  | Cinnamon Shore: The first truly master-planned neo-traditional community on the Texas Coastal Bend – designed like the classic, close-knit and pedestrian-friendly neighborhoods of yesterday, but with all of today’s comforts and conveniences. It’s a visionary place of beautiful homes, a vibrant Town Center and countless recreational facilities, with every community amenity within easy walking distance, plus world-class golf and fishing nearby.
Home Sites starting from $150,000 |  | Wild Sands: South Padre Island is growing to the North and Wild Sands is one of the first new neighborhoods available at an attractive price. Be part of the New-End of the Island and experience a fresh way of living on South Padre Island.
Wild Sands offers 60 residential lots from beach to bay and creates a remarkable living environment on this pristine section of the Island.
Lot Prices Range From $149K to $899K |  | Sapphire: A Randall Davis development with amenities such as dramatic views of the Ocean and Bay, Access to Hotel Services, and Valet Parking. It will also include a Movie Theatre, Game Room, and Pools for everyone in the family.
Prices Start From $495,000 |
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| Comments | |
ByMichael Stuart @
Monday, August 13, 2007 1:00 PM |
I’m a Realtor in the field on the Bolivar Peninsula actually witnessing a lot of stuff happening.
I’m investing in some properties myself in the Bolivar area thinking that the 10 billion in new plant constructions and low median prices will bring a lot of buyers.
I’m already seeing a lot of relocating engineers and the initial construction crew managers from Bechtel engineering coming to the Bolivar Peninsula looking for a home or second home on the beachfront to have a place away from the industrial energy plant setting they have to work in around Beaumont and Port Arthur.
Plus the rental demand for vacation homes on Bolivar is so strong that almost every home is booked for the summer by February.
The exports from the ports in our area, especially now to China and with the future Panama canal expansion is seeing a lot of expanded port activities in the area as well.
I’m also witnessing a lot of the newer buyers coming to the area are indeed baby boomers who are going to retire in 2008 and are looking for a beachfront home or second home and in Bolivar they can actually still afford to buy it, with median price under $200k.
So I’m particularly bullish about the northern-tip of the Texas Gulf Coast on the Bolivar Peninsula. |
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ByNAR @
Monday, August 13, 2007 1:08 PM |
Buy Retirement Home Now, Move in Later
With prices in many areas at a low ebb, it might make good financial sense for Baby Boomers to buy their retirement homes now, even if they're still years away from actually moving. They can find renters who will pay the bills until they're ready to live there.
Here’s some advice for people who are considering this strategy:
Shop carefully. It's best to buy a home that can be rented for a rate that, after tax considerations, will cover the mortgage, real estate taxes, and insurance.
Study up on housing trends. Ask the local or state planning department for demographic and economic data. The information can reveal facts that will influence whether or not to buy. For example, big companies going out of business or military base closings can be bad news.
Don’t forget maintenance. Consider who’ll take care of the house in the owner’s absence. Property managers charge 6 percent to 15 percent of the monthly rent. Family members may be willing to do the job for free, but they could be ill equipped to do the job if the don't have any experience.
Consider financing. Boomers with sufficient equity in their current homes can tap it to either buy their retirement home outright or secure a much lower mortgage rate compared with a loan at the rate often offered to buyers of investment property.
Source: The Washington Post, Belly L. Kass, Esq. |
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ByHouston BizJournals @
Tuesday, August 14, 2007 6:31 PM |
Wall Street bullish on Texas economy
Texas Comptroller Susan Combs said Tuesday that the state's planned sale of $4.9 billion in short-term tax and revenue anticipation notes have received top ratings from the big three New York bond rating firms.
"The Texas economy continues to outperform the U.S. economy, and this has resulted in the strong revenue collections we've seen in fiscal 2007," Combs says. "Specifically the sales tax -- the state's largest tax -- has seen strong growth from consumer purchases as well as purchases from businesses involved in sectors such as manufacturing and oil and gas."
Some of the reasons cited for the state's strong credit rating include its employment growth, its history of successful short-term borrowing and strong cash-management procedures. |
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By
Houston Business Journal @
Friday, August 17, 2007 8:00 PM |
Texas workers confident about jobs, survey says
The Texas Employee Confidence Index has reached its highest level this year, says the Spherion Corp.
The index, according to the Spherion Employment Report, increased 3.9 points to 65.7 in July.
The monthly survey of Texas workers, conducted by Harris Interactive, also revealed that more workers are confident about the job market and future of their current employer.
The report showed that 47 percent of workers believe the economy is ticking over nicely vs. 40 percent in June.
And 36 percent of workers believe that more jobs are available, an increase of five percentage points from the previous month.
Eighty-two percent of workers feel it is unlikely they will lose their jobs, an increase of 11 percentage points from June.
"Our latest report provides a snapshot of workers that are optimistic about the state of the job market and economy," said Kim Lockhart, director of operations for Spherion (NYSE: SFN) in Texas. "Overall confidence has been on the rise and the demand for skilled workers hasn't let up." |
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ByMalok @
Thursday, August 30, 2007 10:42 PM |
Texas definitely sounds like its booming in the real estate market. I'm in Kentucky, and while I'm quite happy with our market, there is no where near the amount of new construction/activity that is going on down there.
Great stuff! |
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ByMike Stuart @
Friday, December 21, 2007 12:13 PM |
The Texas Gulf Coast market finished the year with unseasonably strong and improving sales.
The South Padre Island area finally had year-to-date sales month figures higher than the year before in November, and homes across the coast appreciated in value an average over six percent, making us one of the highest appreciating markets in the country.
The loan star state housing market continues to shine! |
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By
Mike Stuart @
Thursday, February 14, 2008 11:49 PM |
Airline traffic falls for first time in 2007
U.S. airlines carried fewer passengers in November, the first time in 2007 that traffic declined compared with the same month a year earlier.
This could indicate vacation home goers are more interested than ever in close drive to their destinations.
And that bodes well for the Texas coast, where the bulk of its tourism and second home buyers come from within a 2 hour drive. |
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