Austin 2014 Outlook; Texas #1 in Population Growth
According to the US Census Bureau, Texas is once again number one in population growth (for our 8th year straight) with 387,000 new residents. Citing several highlights noted this past year, here are several reasons why.
ECONOMIC GROWTH – Our economy will continue to grow but at a slow rate according to the Real Estate Center. Austin Metro Area is #1 in economic momentum going into 2014 according to Forbes. With perceptions of better times, a pro business climate, double-digit growth in GDP along with a “hipster” reputation, we are destined for greatness. Here is what grounds us… the growth of income…
JOBS JOBS JOBS – Mark Dotzour – The Real Estate Center (TAMU) says Texas has continued job creation and a strong economic outlook (2.4% increase in non-agricultural jobs October 2012-2013). The industries which are attracting job growth include mining, professional and business services, information industry, trade, and leisure and hospitality. Texas added one new job for every three people (Forbes “The real facts behind the Lone Star State’s Miracle 7/3/13″.)
HOUSING – Our Housing Market is staying heated with a low inventory (2.3 month supply). The total sales volume is up 24% – (Nov to Nov) and this is the 30th straight month of our seeing increases in sales volume, according to the Austin Board of Realtors. You know the story: too many people, not enough houses. Does it surprise you that 137 people are moving here every day?
BIG PICTURE – 2014! Yet to be seen are the penalties from Dodd Frank regulations, which will rain on our parade and impose heavy penalties on mortgage lenders beginning January 10th, for making loans that buyers default on. Dotzour explains that the buyer can actually sue the lender if proven they did not qualify for the loan which could definitely put a damper on loan making in the early part of this year. In my experience, the power of the purse is a huge driver or hindrance and affects momentum in the median housing market, while luxury housing and foreign investment are more strongly influenced by the future economic growth of an area.
With interest rates as low as they have been, it’s no wonder Americans continue to pour their dollars into the housing and stock markets, which represent a better prospect of building equity for future retirement than a savings account at a mere 2% will.
My wish for 2014 is that future residents who move to the Lone Star State fight for the best incomes possible rather than just settling! A second wish for 2014 is that we, as Texans, invest in Texas! I commit dedicating myself in 2014 to assisting families and investors in turning possibilities into realities!