A Texas Housing Market is Named Best Place to Own Real Estate in 2007

We’ve given you a few mortgage tips for 2007, but here’s a rather important one that was left out:

• Where’s the best place to own real estate in the new year?

According to Fortune magazine and Moody’s Economy.com forecast, it’s the McAllen-Mission market. Those contemplating a Texas mortgage, therefore, might wish to head for the border.

Four other cities in the Lone Star State, including San Antonio, made the annual top 10 list.

San Antonio, which topped last year’s list, ranked sixth on the list released this morning. The magazine put El Paso in second place and Fort Worth-Arlington ninth.

The economists at Moody’s predicted last year that San Antonio real estate values would show 8 percent price appreciation.

“It looks like they were right on target,” said Travis Kessler, chief executive of the San Antonio Board of Realtors.

Between November 2005 and last month, San Antonio’s average home price increased about 9 percent to $171,720, up from $157,853. The median home price increased about 7 percent to $141,900, up from $132,400, according to the board of Realtors.

Now, Moody’s economists predict real estate values there to increase 4.8 percent in 2007 and 3.5 percent in ‘08.

Values in McAllen-Mission, where the median home price is $69,660, are expected to increase 8.5 percent in 2007 and 9.8 percent in ‘08. Those looking to invest in housing should think about a home mortgage loan in this region today.

“We are an extremely fast-growing area,” said Deborah Martin, president of the Greater McAllen Association of Realtors. “People that have been gone for a year or two, they don’t realize how it’s changed.”