Tuesday, January 4, 2011

Houston's Calm Before the Storm

It was rather calm here in the last quarter of 2010 but future growth predictions for Houston indicate it’s a calm before a storm.

The Institute for Regional Forecasting (IRF) predicts that 3.7 million people and 1.5million jobs will be added to the eight-county Houston MSA over the next 25 years.

Houston will experience a growth at 2.5 percent per year between now and 2020. The population is predicted to grow to 7.4 million. At the same time, about 700,000 jobs will be created in the area, according to the IRF annual long-term forecast.

According to a new report by Veros Real Estate Solutions, Houston is expected to post the nation’s strongest home price appreciation over the next year. Houston will help Texas lead the nation in terms of home price appreciation over the next 12 months.

As forecasters often say, demography is destiny and Houston is home to 38 top-ranked companies according to Forbes. What you currently have in demography tends to grow stronger over time.

Despite these lack luster months, the region seems to possess remarkable resilience in retaining median sales price and raising the average sales price. The statistics aren’t pretty but we forget how lucky we are to be in Houston, where it doesn’t get much better than this.

Info provided by PGG

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