By Tim Sojka
Earlier this year, I had to opportunity to listen to Dr. Ted Jones, one of the nation’s foremost economist. He was very positive about the direction of Houston area real estate. I was so encouraged by the information he shared, that I have put together a summary for you.
Hurricane Harvey effect on the Houston Economy
Hurricane Harvey ravaged many of our client’s homes. Hurricane Harvey’s negative impact will be felt for some time. Dr. Jones in no way down-played the damage that was done. However, he wanted to highlight a few ways the impact from Harvey did help the Houston economy. There were over 2 million additional hotel nights spent in Houston because of insurance adjusters, contractors, and relief workers who came into the city. Additionally, a lot of these people shopped in the city for Christmas and dined in the city. The area economy improved last year in the face of Harvey’s devastation.
Jobs, Leisure and Oil News
There are now more jobs than any time in history. Texas is still one of the top five states in job growth. Most importantly, leisure and hospitality jobs are up. According to Dr. Jones, when leisure and hospitality jobs are up, that means people are spending money on trips and vacations. When people are spending money on trips and vacations, they have confidence in the economy. When people have confidence, the economy improves. Also, the energy companies are becoming more and more efficient. They can drill faster and for less investment. This can only benefit Houston area real estate.
Homes Specifically in Houston and the Suburbs
There were a record number of homes sales in 2017. Some of this volume was because people whose homes were damaged by Harvey, bought additional homes. Home sales increased about 2% in Houston and the suburbs. Home prices increased 3.6% last year.
What does this mean for you?
Thanks to the toughness of our residents and people stepping up nationally to help Houston, the economy is rebounding surprisingly well. This does not mean that there are not challenges ahead. Still, one of the worst natural disasters in history happened to our great city and the people and the economy have bounced back.
This means home sales will continue to increase, your job opportunities are as strong as ever and there is no reason the Houston area will not continue to be considered one of the greatest places to live in the country.
If you need a real estate expert we would be honored to help you. You can reach us at 877-313-SELL or visit us at seetimsell.com