Lubbock, TX - Real Estate Blog

Lubbock Economy Reaches Milestone

Tue, 30 Apr 2013 01:13:04 -0600

LUBBOCK - Lubbock Economic Index (LEI) numbers for January reflect the local economy has officially recovered to prerecession levels. The Economic Index and Consumer Price Index posted 131.6 in January, which was last reached by the LEI in September 2008.

The sharp month-to-month increase to 131.6 from 130.5 in December 2012 is a staggering 8.2 percent jump from the LEI posting of 121.6 for the same month last year, according to James Arnold with Lubbock National Bank.

The $46.3 million in permits for January 2013 was second only to January 2008’s $59 million. New single-family housing construction permits, at 115, were the highest number of permits in the LEI history.

The residential real estate market posted a new record as well, with the 217 sales closed the highest on record for any January reporting, and a 47 percent increase over January 2012.

The average home sale price for January was up 13.5 percent year over year, and also a record. The monthly total dollar volume of activity posted a 66 percent increase over January 2012.

Auto sales continue to post strong numbers, with spending up more than 24 percent compared to January 2012.

More Than 200 Jobs Head To Lubbock

Tue, 30 Apr 2013 01:12:26 -0600

LUBBOCK - The Lubbock Economic Development Alliance (LEDA) announced the creation of 261 new jobs. The additional jobs come as a result of the expansion of one local business and relocation of one new business to the Lubbock community.

Custom Teleconnect is a full-service operator service provider focused toward the telecommunications industry. The company is headquartered in Las Vegas and currently has locations in both Las Vegas and Lubbock.

There are currently around 40 employees in the Lubbock office and the expansion will add 163 new employees over the next few years. These jobs will total almost $3.5 million in annual salaries with a capital investment of approximately $228,000.

The second company to announce new jobs is Republic National Distributing Company (RNDC), the nation’s second largest premium wine and spirits distributor.

The company is consolidating their Amarillo and Odessa distribution centers to create one — West Texas distribution center in Lubbock. They plan to build a 125,000-sf facility at the Lubbock Business Park for the distribution center.

Over the next five years, RNDC will create 98 new jobs with total annual salaries equaling $3.5 million and a capital investment of $5.6 million.

The jobs created from these projects equal more than $7 million in annual salaries with a capital investment of more than $5.8 million.

Once fully operational, the total annual economic impact of these projects is $36,868,547.LUBBOCK - The Lubbock Economic Development Alliance (LEDA) announced the creation of 261 new jobs. The additional jobs come as a result of the expansion of one local business and relocation of one new business to the Lubbock community.

The second company to announce new jobs is Republic National Distributing Company (RNDC), the nation’s second largest premium wine and spirits distributor.

Over the next five years, RNDC will create 98 new jobs with total annual salaries equaling $3.5 million and a capital investment of $5.6 million.

The jobs created from these projects equal more than $7 million in annual salaries with a capital investment of more than $5.8 million.

Once fully operational, the total annual economic impact of these projects is $36,868,547.

Lubbock Housing Market Shows Strength

Tue, 30 Apr 2013 11:21:04 -0600

LUBBOCK - While the national real estate market begins to show recovery signs, both the Texas and Lubbock markets continue to steadily increase at above average rates.

January numbers for both existing home sales and new residential construction indicate the local growth trend will continue well into 2013. Months inventory is 4.4 months, a 35.3 percent decrease from 6.8 months a year ago.

There are about 1,074 single-family homes available in Lubbock County, a 22.2 percent decrease from January 2012.

Overall construction activity was up by more than 55 percent in 2012, and residential construction was up by more than 30 percent.

Commercial, farm and ranch and industrial real estate and construction activity have increased, along with existing home sales and new home construction, are all signs of a strengthening local economy.

The average residential price increased 13.5 percent to $148,979 in January 2013, up from the January 2012 price of $131,241.

Alamo Drafthouse Hit For The Hub

Tue, 30 Apr 2013 10:47:03 -0600

LUBBOCK - Alamo Drafthouse will open in North Slide Square center at 5200 North Loop 289. The theatre will feature eight screens with state-of-the-art digital sound, RealD 3D projection and 35mm projection in select auditoriums.

A combination of movie theatre and restaurant, the theatre offers food, drinks, films and events all under one roof.

Construction and site work has already begun at the new location, which is expected to be completed in time for the 2014 summer movie season, according Tim League, CEO of Alamo Drafthouse.

With three universities, over 30,000 students, a steady economy and a trade area of 500,000, Lubbock was an obvious choice for the new Alamo Drafthouse location.

Currently, Triple Tap Ventures, a local franchise partner, is developing Alamo Drafthouse locations in El Paso, Houston and Lubbock, and has plans for additional Texas locations.

June Existing-Home Prices Rise Again

Wed, 25 Jul 2012 10:23:59 -0600

WASHINGTON (July 19, 2012) - Existing-home prices continued to show gains but sales fell in June with tight supplies of affordable homes limiting first-time buyers, according to the National Association of Realtors®.

Total existing-home sales¹, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 5.4 percent to a seasonally adjusted annual rate of 4.37 million in June from an upwardly revised 4.62 million in May, but are 4.5 percent higher than the 4.18 million-unit level in June 2011.

Lawrence Yun, NAR chief economist, said the bigger story is lower inventory and the recovery in home prices. „Despite the frictions related to obtaining mortgages, buyer interest remains solid. But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets,„ he said. „The price improvement also results from fewer distressed homes in the sales mix.„

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.68 percent in June from 3.80 percent in May; the rate was 4.51 percent in June 2011; recordkeeping began in 1971.

The national median existing-home price² for all housing types was $189,400 in June, up 7.9 percent from a year ago. This marks four back-to-back monthly price increases from a year earlier, which last occurred in February to May of 2006. June’s gain was the strongest since February 2006 when the median price rose 8.7 percent from a year prior.

Distressed homes³ - foreclosures and short sales sold at deep discounts - accounted for 25 percent of June sales (13 percent were foreclosures and 12 percent were short sales), unchanged from May but down from 30 percent in June 2011. Foreclosures sold for an average discount of 18 percent below market value in June, while short sales were discounted 15 percent. „The distressed portion of the market will further diminish because the number of seriously delinquent mortgages has been falling,„ said Yun.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said there’s been a steady growth in buyer interest. „Buyer traffic has virtually doubled from last fall, while seller traffic has risen only modestly,„ he said. „The very favorable market conditions are helping to unleash a pent-up demand, which is why housing supplies have tightened and are supporting growth in home prices. Nonetheless, incorrectly priced homes will not attract buyers.„

Total housing inventory at the end June fell another 3.2 percent to 2.39 million existing homes available for sale, which represents a 6.6-month supply⁴ at the current sales pace, up from a 6.4-month supply in May. Listed inventory is 24.4 percent below a year ago when there was a 9.1-month supply.

First-time buyers accounted for 32 percent of purchasers in June, compared with 34 percent in May and 31 percent in June 2011. „A healthy market share of first-time buyers would be about 40 percent, so these figures show that tight inventory in the lower price ranges, along with unnecessarily tight credit standards, are holding back entry level activity,„ Yun said.

All-cash sales edged up to 29 percent of transactions in June from 28 percent in May; they were 29 percent in June 2011. Investors, who account for the bulk of cash sales, purchased 19 percent of homes in June, up from 17 percent in May; they were 19 percent in June 2011.

Single-family home sales declined 5.1 percent to a seasonally adjusted annual rate of 3.90 million in June from 4.11 million in May, but are 4.8 percent above the 3.72 million-unit pace in June 2011. The median existing single-family home price was $190,100 in June, up 8.0 percent from a year ago.

Existing condominium and co-op sales fell 7.8 percent to a seasonally adjusted annual rate of 470,000 in June from 510,000 in May, but are 2.2 percent higher than the 460,000-unit level a year ago. The median existing condo price was $183,200 in June, which is 6.9 percent above June 2011.

Regionally, existing-home sales in the Northeast dropped 11.5 percent to an annual pace of 540,000 in June but are 1.9 percent above June 2011. The median price in the Northeast was $253,700, down 1.8 percent from a year ago.

Existing-home sales in the Midwest slipped 1.9 percent in June to a level of 1.02 million but are 14.6 percent higher than a year ago. The median price in the Midwest was $157,600, up 8.4 percent from June 2011.

In the South, existing-home sales declined 4.4 percent to an annual pace of 1.73 million in June but are 5.5 percent above June 2011. The median price in the South was $165,000, up 6.6 percent from a year ago.

Existing-home sales in the West fell 6.9 percent to an annual level of 1.08 million in June and are 3.6 percent below a year ago. The median price in the West was $233,300, up 13.3 percent from May 2011. Given tight supply in both the low and middle price ranges in this region, sales in the West are stronger in the higher price ranges.

Sales in February Solidly Higher Than a Year Ago

Tue, 27 Mar 2012 09:29:06 -0600

Pending home sales were down slightly in February but remain notably above the pattern in the first half of last year, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, eased 0.5 percent to 96.5 in February from 97.0 in January but is 9.2 percent above February 2011 when it was 88.4. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said we’re seeing the continuation of an uneven but higher sales pattern. “The spring home buying season looks bright because of an elevated level of contract offers so far this year,” he said. “If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

The PHSI in the Northeast slipped 0.6 percent to 77.7 in February but is 18.4 percent above a year ago. In the Midwest the index jumped 6.5 percent to 93.8 and is 19.0 percent higher than February 2011. Pending home sales in the South fell 3.0 percent to an index of 105.8 in February but are 7.8 percent above a year ago. In the West the index declined 2.6 percent in February to 99.3 and is 1.8 percent below February 2011.

Texas Foreclosure Rate Still Far Below National Average

Tue, 15 Nov 2011 06:33:53 -0600

One in every 988 housing units in Texas had a foreclosure filing on it in October, according to statistics from foreclosure-data aggregator RealtyTrac. Nevada continues to occupy the undesirable top spot on this list, where one in every 180 houses has a foreclosure filing. The national average for the month was one in 563.

For sheer numbers of foreclosures, California exceeded all other states in October, with 55,312. By comparison, Texas logged 9,845 foreclosure notices during the month.

For information about the Texas economy and real estate markets that you can share with clients and prospects, visit the Texas Market News section of TexasRealEstate.com.

Home prices rise statewide in Texas

Fri, 05 Aug 2011 08:37:54 -0600

The Texas Association of REALTORS® provides media outlets with the Texas Quarterly Housing Report, which reflects what's going on in 47 of the state's markets.

The latest report shows that real estate prices during the second quarter of 2011 indicate strength in the Texas market:
The median price was $150,400, 1% higher than the same quarter of 2010. The average price in 2011-Q2 was $201,288, 4.6% higher than 2010-Q2.

The increase in the average price of Texas homes indicates more activity among higher priced homes. Buyers of higher priced homes have been less affected by tightened mortgage lending standards, and real estate has been an attractive investment vehicle due to instability in other investments, such as securities.

Another important market indicator is the inventory of homes available for sale compared with the demand to buy homes. Measured in months, Texas had 8.1 months of inventory in the second quarter of 2011 compared to 7.2 months in Q2-2010. This is still fairly balanced, with some of the additional inventory believed to be banks resuming foreclosure proceedings.

Pending Home Sales Rise in June

Fri, 05 Aug 2011 08:35:36 -0600

Pending home sales increased in June following a wide swing down in April and then up in May, according to the National Association of Realtors®. Activity increased in the West and South but declined in the Midwest and Northeast; all regions show strong double-digit gains from a year ago.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 2.4 percent to 90.9 in June from 88.8 in May and is 19.8 percent above the 75.9 reading in June 2010, which was the low point immediately following expiration of the home buyer tax credit. The data reflects contracts but not closings.

Pending Home Sales Rise Again in March

Tue, 03 May 2011 07:06:34 -0600

March saw another increase in pending home sales, with contract activity rising unevenly in six of the past nine months, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.

The data reflects contracts but not closings, which normally occur with a lag time of one or two months.