Texas economy, housing market continues to improve

The local economy in Texas is expected to yet again outpace national averages during the new year, says the Real Estate Center at Texas A&M University.

The local economy in Texas is expected to yet again outpace national averages during the new year, says the Real Estate Center at Texas A&M University.

According to the recent report from the institution, the Lone State State has already started 2012 on a better foot than the rest of the country - indicating the potential for another year of strong economic gains in the state.

As a result of the upswing in the sate, Texas' real estate market has been booming when compared to national averages. According to the center, the sales of existing single-family homes rose by 9 percent in November on a year-over-year basis. There were roughly 15,000 homes sold during the month at a median sales price of $147,600 - a 1 percent increase from 2010.

"Fortunately, Texas is poised to outperform the U.S. averages," said Real Estate Center chief economist Mark Dotzour. "Home sales volume in Texas should show modest improvement over 2011, and prices should be stable throughout 2012."  

Additionally, the report indicated that Texas' job growth paired with a low cost of living continue to attract more businesses, further stimulating the local economy.

Meanwhile, the report also noted that Texas is responsible for creating 19.4 percent of all national jobs during the 12-month period between September 2010 and September 2011.

However, despite the positive economic indicators predicting another strong year for Texas, a recent report from the Dallas Federal Reserve showed that the state's revenue index, which is a measure of the conditions within the service sector, fell from a score of 14 to 9 in December - indicating a sizable decline in the state's revenue growth.

Subsequently, some analysts are still predicting positive economic growth in Texas during 2012, but at a slower pace from previous years. 

Meanwhile, Texas seems to only be an isolated example of an improving economy. According to the the Real Estate Center, the rest of the country will continue to face economic hardship and a slow rate of growth throughout 2012.

Overall, the report concluded that the nation will have to get a handle on the dense backlog of distressed properties while dealing with both public and private debt before the country will start seeing positive economic improvements.



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