From the newest Real Estate Report (RECON) by Texas A&M:
[i]HOT RESIDENTIAL MARKETS RESIDE IN TEXAS
SAN ANTONIO (mysanantonio.com, fortune.com) – Texas metropolitan areas are some of the country’s hottest residential markets in terms of projected home price appreciation rates for 2006, according to Fortune Magazine. Fortune worked with Moody’s Economy.com and Fiserv CSW on the analysis of home sales data for the country’s 100 largest metro regions. Three Texas markets ranked in the top ten.
San Antonio ranked No.1 in the nation, with a projected appreciation rate of 8.3 for 2006.
Dwight Hale, immediate past chairman of the San Antonio Board of Realtors said, “We had an 8 percent appreciation rate in the last 12 months, and net job growth is estimated to go up over 20 percent next year. I’d say that forecast is very reasonable.” San Antonio’s median home price sits just under $130,000.
Third ranked El Paso closely followed San Antonio with a projected appreciation rate of 8.1 percent, and the Houston, Sugar Land and Baytown area was No. 9 at 7.0 percent. El Paso’s median home price is $107,000, and in the Houston area, the median price is almost $140,000.[/i]
Looks like San Antonio, El Paso, and Greater Houston were ranked pretty high. I’m from San Antonio originally. I’m glad it’s probably going to start seeing some appreciation in 2006.
So far, it looks like CA, FL, and current “hot” markets are actually slated to decline in 2006. They’re already cooling off. The study here was on “major” metro areas for 2006.
New Orleans is set to appreciate, but 2006 would be pretty soon. Take a full look at the rankings on Fortune.com.
According to the article Salt Lake City is projected at #20 with 6.1% in 2006. Actually softening futher to 3.4% in 07.
Who knows what the future holds, I’d rather see their methodology than their rankings. Large magazines often have lists which are interesting reading, but the reasoning behind their rankings interest me more. I wish they would post that in more detail.
I think I’m going to join the San Antonio board because investors are getting a good cash flow there. With the expected growth and the Austin-San Antonio corridor comming through, the city will be doing well in upcoming years.
I grew up in San Antonio and every time I go home (from Austin), there are new subdivisions or shopping areas. It seems like the city is constantly expanding.
I LOVE the military market…San Antonio has the medical schools for the Army and the Air Force. They’re not going anywhere. The military member stationed there draw a tax-free allowance for housing. Even the very lowest rank (E-1) draws $890 a month for housing in the SA area. And, the military members pay their housing bills or they can get in trouble for drawing an allowance earmarked for a specific purpose and then not using it for that. The local Air Force base publishes the punishments handed out by the base commander. One Airman was fined over $500 last month for not paying his landlord…
To assist the service members, bases have a Housing Referral Office. Most of these allow local landlords to post their properties for rent on the bulletin board. We have rented our last two properties for rent to military folks. The money comes in like clockwork and they take care of the property.