Texas bucks the trend

Texas is bucking the trend in the United States with property prices still rising and the number of foreign investors increasing.

Holiday resorts like Galveston and South Padre Island have seen prices rise although overall they are regarded as cheap compared to popular destinations such as Florida.

Texas has never been regarded as a major place of choice for foreign buyers but the latest report from the National Association of Realtors found 10% of the international buyers in the United States last year bought in Texas. Only Florida and California - with 26 and 16 percent - accounted for more international buyers.

'We have never had the huge price increases witnessed in other states. So we haven't had the big blow up either,' said Jim Gaines, a research economist with the Real Estate Center at Texas A&M University.

He points out that while many states saw declines in house prices in 2007, property prices in Texas surged almost 7% according to government statistics.

And because prices started from a low median they appear a bargain compared with states where prices surged during the housing boom. The median price in Houston, the fifth largest American city, is $155,000 compared with $385,000 in the Miami-Fort Lauderdale area.

But elsewhere in the US the number of foreclosed property continues to rise. Lenders are now slashing prices, not in desperation to find buyers, but to obtain multiple offers from which they can choose the buyer who offers the least amount of risk.

The latest figures show that between April 2007 and April 2008, skyrocketing foreclosures caused the number of bank-owned properties to more than double, from 254,000 to 660,000.

And it is proving tough for real estate agents. Helping banks sell off properties is one of the only flourishing businesses these days. But it comes at a cost. Agents can easily pay hundreds of dollars a month on upkeep, including utility bills, cleaning and lawn care and must go through the hassle of getting reimbursed by the bank. They sometimes have to evict homeowners, tenants or squatters. And in many cases, they have to deal with vandalism or theft of everything from copper pipes to appliances and air conditioners.

BOOKMARK THIS PAGE (What is this?)