The Texas housing market boom is 'strong and enduring,' a report by the Texas Association of Realtors confirms.
The average home value in Texas rose 8.48% in 2013, and the TAR's Stacy Armijo says the boom is not the result of investors and house flippers, but instead is a healthy and deep rooted boom which is caused by home buyers flocking into the state to purchase homes.
"A lot of people wonder, are prices increasing more, are home sales increasing more, because we are in another bubble," she said. "That doesn't seem to be the case."
And the nice thing about the boom, according to Jim Gaines, an economist with the Real Estate Center at Texas A&M, is that it is truly raising all boats, and is benefitting people across all parts of the economic spectrum.
"The price increases in the fourth quarter are relatively consistent across the state," he said. "Those increases are being seen in markets of every size, not just in the largest Texas markets, so that indicates broad-based appreciation for Texas real estate."
Armijo says the demand is coming from the state's strong and continuing job growth, driven by energy, high tech, and other sectors.
"This demand is coming from having more people move to the state, and wanting to live here and have a home here, because it is more affordable than many parts of the country," she said.
The key driver of higher home prices is the housing inventory on the market. Currently statewide, the housing inventory of 3.6 months, which is about half of the 6.5 months which is considered a balanced market.
In fact, the TAR reports the only thing that can stop the boom from continuing is a lack of housing, and Armijo says that is good news for the construction sector, as well as electricians, plumbers, and everybody else who is involved in home building.
"When someone buys a home, suddenly they need more furniture, they need lawn care, they need paint, they need lots of things that go on for home services," she said.