THANK YOU TO OUR 2015 MCBDD ANNUAL SPONSORS
PLATINUM 2015 Montgomery County Division Chair GOLD
MATTHEW REIBENSTEIN Royal Homes
Still Heating Up
You might assume the obvious and think “heating up” refers to the sweltering Houston weather. Don’t go around looking for cold fronts anytime soon, how- ever, I was actually talking about our local real estate market! It continues to be a great time in the industry, and according to Dr. Mark Dotzour, chief economist at the Texas A&M University Real Estate Center, the (near) future looks just as promising.
SILVER
Let’s be real. The real estate industry fluctuates quite a bit—sometimes even feels like feast or famine. But it’s also nice every once in a while to hear that things are just going well. We have seen steady increases in new home sales over the last five years and, according to reports, it isn’t over yet! Specifically in Montgomery County, home sales have exploded and the current rate of construction all around the area is nothing short of unbelievable. So what is causing all of this, and how long will it last? Without giving false hope or empty promises, here are a few facts and figures:
• Houston leads the state in home price appreciation at 10.4% in the last year (beating San Antonio, Dallas/Ft. Worth and Austin at 7.5%, 9.2% and 9.5%, respectively).
• The Consumer Confidence Index has steadily increased since 2009, almost reaching levels that rival the boom from 2004 to 2008.
• Consumers are spending money again after a major decline in 2009. The rate of spending has steadily increased and is now higher than reported in 2004 to 2008 (Retail and Food Service Sales reports).
• Debt service is also lower per household (as a percentage of disposable personal income) than it has been in over 30 years.
• Job creation continues to improve, especially in the small business markets, and many are suggesting now is a good time to expand.
• Houston has already shown nearly identical trends in 2015 compared to 2013 and 2014 in existing home sales and inventory of unsold homes.
• Single family building permits for 2015 in Houston are currently in line with 2014 and higher than 2013.
MONTGOMERY COUNTY INFO AND SPONSORSHIPS: Contact Mel Audain (281) 664-1428
maudain@ghba.org
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The bottom line is that we never know when the next “crisis” will hit and ultimately how it will affect our industry. I can’t tell you how many times I heard last year that the U.S. was headed for another recession and the oil industry slowdown would cripple Houston and the surrounding areas. I am not saying we won’t be affected at all, but I spent so much time scared of
AUGUST 2015 | HOUSTON BUILDER | GREATER HOUSTON BUILDERS ASSOCIATION – BUILDING A BETTER FUTURE
the unknowns that at times I forgot to look up and relish in the “known,” which was that we were amidst one of the best real estate economies in the nation. For more detailed information and graphics, visit
ghba.org to see Dr. Dotzour’s 2015 Mid Year Forecast. Together, let’s continue heating up Houston!
NEXT MEETING:
MONTGOMERY COUNTY DIVISION MONTHLY LUNCHEON
Wednesday, August 26 11:30 a.m. to 1 p.m. at Americas 21 Waterway Ave, The Woodlands 77380 Cost: $40 earlybird; $50 after Aug. 19
Topic: BUILDER/ DEVELOPER PANEL
featuring: Will Holder, President, Trendmaker Homes Matthew Reibenstein, President, Royal Homes Karl Mistry, Division President, Toll Brothers Harry Masterson, Principal & Executive V.P., Cernus Development
Sponsored by:
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