Don’t Mess With Texas (Price Appreciation)!

Housing experts say Texas real estate is bucking a national trend, with investors flocking to the Lone (or is it loan) Star State.

Sales are slowing across the country, and existing home sales are expected to fall a little more than four percent nationally this year, according to the National Association of Realtors. Yet Travis County, home to the state capital of Austin and outlying areas, is booming. Realtor Jeff Walker of Walker Realty has already sold two houses in Travis County this month, and is off to a good start in 2006.

“In southern Travis where there’s the land to build, yes they’re coming — and they’re coming in droves. Builders from all over the area in Texas and nationally are building as much as they can,” Walker said.

Housing experts say land in Texas is undervalued and is more affordable compared to many of the nation’s hot housing areas. New York and South Florida housing markets, among others, have seen growth of more than 100 percent in the past five years, pushing median prices out of the range of many prospective buyers. Despite Texas’ own impressive growth — an estimated 269,000 Texas homes were sold in 2005, a 34 percent increase from 2002 — it remains a bargain by industry standards.

Many out-of-state real estate investors, who experts believe may pull their money out of deflating markets in the upcoming months, are looking to Texas in an effort to get a lot more house for their money. In addition to investors descending upon the state and buying multi-family homes, apartments and duplexes, individual buyers have also been fueling the Austin-area’s real estate growth, with more and more purchases of $400,000 and up.

While Naples, Fla., was recently named the most overvalued market by analysts, with houses costing 84 percent more than they should, Texas has nine of the 10 most undervalued markets in America. This collection includes Bryan-College Station, El Paso, Killeen, Dallas, Beaumont and Fort Worth. Walker and his counterparts say that the Austin area should be a good investment in 2006 and that now is the time to buy.

Hook ‘em loans! But don’t be alarmed if you are a prospective Florida home loan applicant trying to enter an overvalued market. Just because Naples is considered overvalued does not mean prices will decline, as long as demand remains strong. However, your money won’t go as far there as it will elsewhere. Just do your research and make sure the real estate you buy is worth the price, and that the type of Florida home loan you apply for is most beneficial to you. Then find yourself a real bargain.