Lonestar vs. Sunshine: Texas is the new Florida
Florida, highly touted for its vacation real estate and winter homes for snowbirds, has seen serious competition from the Lonestar State in recent months. In fact, Texas has moved into second place behind Florida in terms of popularity among retirees, according to a recent national study by the University of North Carolina-Asheville.
Some speculate that this is because oil is such a major economic player in Texas and, as we are all painfully aware when standing at the pumps, oil is gold right now. Thus, Texas’ overall economy has been helped. Others speculate that states like Florida have seen their day and are now experiencing the fallout from the housing boom of the last couple years. Another theory is that the Florida housing market has been hurt by hurricanes, something Texas has not really had to deal with.
At any rate, the Florida Association of Realtors reports the existing median home price in Florida is $237,500. That’s a bit higher than the average U.S. median home price of $223,800 in the second quarter of 2007. Texas is seeing an average median home price of $193,300. The following are some median home prices in individual Texas markets that boast the highest vacation and tourism traffic.
Texas is seeing an overall increase in home prices, while individual market results are mixed. A few individual markets in Texas have seen dropping prices, but only minor. The overall picture remains robust in the midst of considerable drops in real estate pricing in states like Florida. In fact, Florida home sales are down 26 percent and home sales nationwide are down 2 percent, according to the Florida Association of Realtors. Texas, meanwhile, is enjoying an average 5-month inventory on real estate and a 5 percent increase in average home prices over this time last year.
Texas home prices will likely keep climbing as the state’s popularity grows. There will eventually be a fallout like Florida has experienced, but it really can’t get cheaper than it is now. The U.S. Census Bureau expects Texas to hold 30 percent of America’s population by 2030. Florida and California will account for another 30 percent, the bureau predicts. Bottom line: To get the most house for the money and the greatest potential for future return on investment, carpe diem in the Lonestar State.
November 29th, 2007 at 10:34 am
[…] as a whole is faring relatively well, thanks in large part to its developing reputation as the vacation/retirement spot d’jour. But Austin is faring particularly well, with a large white-collar, high-tech, well-educated […]