According to the above article titled “Luxury Home and Condo Sales Help Drive Banner Year in Texas Real Estate”
by Johnathan Reienstra, an annual report from the Texas Association of Realtors
and the 2014 Texas Annual Housing Report shows that there has been significant
growth in all areas of real estate over the past year. What I found interesting
were that these gains are significantly attributed to affluent international
home buyers with increases in luxury home sales and condo town home sales. This
boom in real estate is fueled by the high demand of homes from the huge influx
of people moving to Texas from other countries daily. Texas is known for having
a business friendly atmosphere, a better than average economy, and lower cost
of living compared to the other states in the US.
The demand for luxury housing and condos in Texas is
predicted to steadily increase into the future according to the article which
states:
“Luxury homes priced over $1 million
were a significant portion of the market’s growth. January 2014’s Texas Luxury
Home Sales Report showed an average 35 percent year-over-year increase for
luxury home sales in Texas’ four major metros: Dallas, Houston, Austin and San
Antonio. In Austin and Houston in particular, the luxury housing market grew
twice as fast as the housing market at large.”
This
growth has predicted 2014 to be the second-best year in home sales for the
state of Texas. As discussed in class, I think current real estate trends infer
that the market is currently in middle of a booming period coming out of the
recession and housing market crash of 2008. Could this be another bubble?
Possibly. I predict that the market will go back down in 3 to 4 years, as real
estate booms usually last 6 to 7 years. If this is the case, hopefully the
bubble won’t burst as bad as in 2008. Regardless, Texas is definitely at the forefront
of this real estate boom with twice as much recorded growth compared to other areas of the country.
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