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Slowdowns in the volume of home sales in some areas and concerns over the sub-prime mortgage meltdown have caused Texas real estate markets to show mixed forecasts for the first half of 2008, and the remainder of the year. Some markets are forecast to appreciate while others will see home prices deflate.
Long-term, El Paso's economy is expected to grow from almost $18 billion in 2006 to $21.6 billion by 2009, as measured by personal income, which should have a positive effect on the real estate market. But currently the sub-prime crisis and higher foreclosures have also impacted the El Paso, Texas real estate market somewhat. So prices are forecast to deflate through the remainder of the year by about 3.8%. The biggest problem facing investors/buyers right now is getting a mortgage even with good credit. But El Paso continues to attract new employers which will have a positive effect on the economy in the long-run.
As an example, take a look at what's happening in the El Paso real estate market. As of September 1, 2008, there were 3,273 El Paso homes for sale, which is up 3.2% from August 2008, with a median price of $159,900.
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Markets at a Glance
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City
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Forecast
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Houston
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− 3.2%
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Dallas
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− 3.8%
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Austin
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4.0%
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San Antonio
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− 3.9%
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Lubbock
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2.3%
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Amarillo
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2.4%
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El Paso
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− 3.8%
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Source:http://www.housingpredictor.com/texas.html
To see how El Paso fares compared to the rest of the state, let's take a look at some of the other Texas metropolitan markets. For example, Houston's once booming market has slowed to the slowest level in more than a decade with prices beginning to fall in most areas. The mortgage meltdown has finally hit the oil capital and the inventory of homes and condos has been increasing. Houston has experienced big booms in the oil business, but for real estate its different. The market is weakening and is forecast to weaken further as homes decline in value an average of 3.2%.
San Antonio is still seeing new businesses moving into the area, but growth has slowed as a result of the mortgage crisis, and the inventory of homes is increasing. The slowdown in the market is predicted to cause home values to decline by 3.9% for the remainder of 2008. So overall, El Paso is faring fairly well.
Right now is a great time for investors to buy El Paso real estate. There are many good investment opportunities in short sales and foreclosure properties in the El Paso and surrounding areas, due to the current situation, but there are many signs that indicate that El Paso will rebound fairly well and better than many other areas. This is a great time to invest!
Source: http://realestate.yahoo.com/Texas/El_Paso
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