Think we're in a Texas Real Estate Bubble? Think Again...
While it's fairly well known that business cycling is just another fact of life, Texas still remains high up in the top 10's for increased job growth. Obviously, there are going to be ups and downs, but Texas is consistently set up to outpace other states in the country.
Job growth is the first indicator for long-term growth. Between now and 2040, an estimated 6.2 Million new jobs are estimated to be added between now and 2040, which will put employment in the state of Texas at just over over 18 million, which if you average that out, comes to 21,000 new jobs a month for at least the next 2 decades.
Texas is getting more and more diverse too. I recently read an article stating that the "Oil slump is not as big of a drag on Texas economy" which just goes to show that the diversity in range of industry keeps the economy healthier than other cities. Even when oil prices dropped from $100 to under $40 it was not devastating, and even more proof when the housing crisis hit in 2008 and 2009 Dallas prices "stabilized" instead of increasing, but they all maintained their equity in contrast Florida where value dropped hundreds of thousands of dollars in a year or less. Part of this is due to the strength in our more regulated financial institutes (which don't allow people to use their houses like ATMs) but more importantly, the state’s economy is considerably well positioned for a stronger economy. Period.
Reading between the lines, my advice is relatively simple. Right now is the best time to buy real estate. If you think there is a housing bubble, you are wrong.
The longer you wait the more expensive homes are going to get. More jobs = more people moving the area, which translates to more demand for homes. The supply of homes is at an all time low, and not growing nearly fast enough for the growing demand. Affordability has decreased steadily year after year and even still it is important to understand that these price increased are not across the board for all homes in all suburbs and all price points. Price points we witness in having the highest level of increase over the past two years is $250k-$450k. Invest in real estate in Dallas.