Although the city of Houston is still picking up the pieces from the devastating Hurricane Harvey, the future is looking bright. We should not feel discouraged by that monster of storm that tore through our great city, but we should focus on what is to come in 2018. Dr. Ted C. Jones presented a promising presentation focusing on the economic forecast for this year. Dr. Jones is the Chief Economist – Senior Vice President for Stewart Title Guaranty Company. Ted C. Jones’ recognized specialty is applied real estate research. He has completed numerous mass-appraisal assignments, totaling more than $3billion. He gives more than 150 presentations on real estate and the economic outlook each year, and we look forward to attending his forecast luncheon each year. Stay up to day with him on Twitter at @DrTCJ.
After Hurricane Harvey there were over 2 million hotel room stays. This was a hidden economic boom for our city after such a major crisis.This boom in hospitality is what helps 2018 projections in Houston for the following:
-Existing home sales up 2%
-Existing home prices up 3.6%
-New home sales up 9.2%
-New home prices up 4.1%
Texas was number two in the US for job growth at 2.73% in 2017. Did you know we rank as 13th best state to do business with? We can expect to see more people heading to our great state when the tax bill is passed. When they passed the tax bill, it’s expected that homeowners of $1mil+ homes in states like California will want to leave and go to Texas or Florida. This will also continue to help our over all economy. In addition to growth, unemployment is also down. 1.89mil people are on unemployment benefits which is the lowest amount in 44 years. Because NAR said home sales nationwide would dip 5-20% due to tax bill, Dr. Ted ran numbers based on this prediction and found that only 2.75% of homes sold in Htown in 2017 would have been affected by this bill. This is great news for Texas.
Houston had 1.6% job growth in 2017 which was higher than the US percentage for growth. 24,900 jobs were lost in Sept after Harvey, yet we still came out on top. We can look to add 77,000 more jobs in 2018. So not only will those jobs lost be regained, we can look forward to employing even more Houstonians this year.
We can continue to look for The Millenials to enter the market, which happened to be the majority of our client base in 2017.
-13.6% of population in US are millennials (age 25-36).
-30% of homebuyers nationwide are millennials
In addition to all of these exciting statistics, here are some mega themes to look for in 2018.
More jobs than ever in history
Entry level homebuyers strong
Rising interest rates so buy now! Obama tripled debt in his 8 years, and we can’t pay our bills. Interest rates went up, so debt is also projected to go up 30% from March 2017-2018.