Thursday, Dr. James P. Gaines, was in Beaumont talking about the residential housing market and what's in store for 2010. If you have never heard of him, then a brief introduction is in order. Dr. Gaines is a Research Economist with the Real Estate Center at Texas A&M.
"If you are a buyer or seller of real estate in Texas when Dr. Gaines talks you should listen."
The Beaumont Board of Realtors was fortunate enough to have him present his "Economic and Housing Outlook" for 2010 at the first quarter luncheon. Now, if you already know if homes values are going up or down this year then there is no need to read any further.
To give credit where it is deserved the following charts and graphs are from a power point presentation Dr. Gaines presented on Jan. 14, 2010.
First and foremost take a look at home sales in Texas:
The numbers are small but the trend is clear. Home sales rose from 1990 to 2006. Since the peak in 2006 they have fallen back to the levels seen in 2001-2003.
Second, here's the same trend shown in Southeast Texas:
Southeast Texas home sales peaked in 2007. They have fallen back to about the 2002-2003 levels.
Third, this chart shows what was going on with median prices and inventory in 2008 and 2009.
There was a decline in sales. Roughly, 9.5%. There was a decline in the average and median price across the state. The months supply of inventory remained the same.
Last but not least, take a look at the single family homes sales data for Southeast Texas.
Year to date sales fell about 5% for the year in Beaumont. The average price went down a smidgen. Our median price actually went up. One red flag that you don't want to overlook is the months supply of inventory increased to 9 months. Hint: A six month supply is considered balanced and healthy by the Real Estate economists. A nine month supply would indicate a buyers market and in a buyers market the pressure on home prices is downward.
One statement Dr. Gaines made that stuck in my mind went something very close to this; "There has never been a better time to buy residential real estate and there will probably never be this same unique opportunity to buy real estate again in our lifetime."
What really happens in 2010 remains to be seen but the outlook seems to say if you plan to buy a home do it soon or you may have missed a golden opportunity in the residential housing market.
Keep up the good work. You have an information packed blog.
Posted by: Steve Buser | January 21, 2010 at 09:29 PM
* be happy together is good enough. I am not asking for things that I could never get.
Posted by: Taobao in English | January 20, 2011 at 07:46 PM