Texas Mortgage Activity Strong, Bucks National Slowdown

Even though regions throughout the United States have been steadily declining, people are continuing to buy homes in the Texas housing market, according to one of the state’s leading real estate economists.

Mark Dotzour, chief economist at the Real Estate Center at Texas A&M University, says while much of the nation is facing an erosion home sales, Texas continues to benefit from population growth and affordable housing.

Still, the housing picture isn’t perfect. Recent figures show a slowdown in building permit activity in Dallas, Austin and San Antonio.

“Texas housing is still very affordable,” Dotzour said. “And the low tax structure and pro-business climate makes Texas a destination for corporate relocation for firms that are striving to compete in the global marketplace.”

The latest figures show the state is increasing its population by about 400,000 people annually, Dotzour said. There isn’t exactly a lack of Texas mortgage demand.

“All of these people need homes or apartments in which to live,” he said.

One caveat in the economist’s upbeat forecast for the state could come in the residential foreclosure arena, particularly among houses priced under $200,000. Like other markets, bad credit home loans are causing people to default.

“Relaxed [mortgage lending] standards have increased the number of homeowners dramatically,” Dotzour said. “Consequently, higher levels of foreclosures are to be expected.”