HOUSTON – Forbes.com has an article about housing markets in the U.S. which
are likely to make a recovery this year and Houston is high on the list. Strong job market, population growth, and
incomes that are growing rapidly make up the key factors in seeing a rebound in
the housing market.

“Oil doesn’t just heat homes, it
also heats up a housing market. Cities where oil and natural gas are key
components of the local economy have not only fared well in the downturn,
they’ve thrived,” Forbes reports.

“In Houston, where the heavy
concentration of energy companies has earned it the nickname “Baghdad on the
Bayou,” home prices shot up 21% from 2002 to 2007 and rather than falling, have
stayed close to those 2007 levels since.”

Forbes also takes note of the growth
Houston has experienced, “The population has grown at nearly triple the
national rate and median income is above average. Houston and other Lone Star
cities also didn’t succumb to the levels of overbuilding that cities in
neighboring Sun Belt states did, either.”

The Forbes reports says that looking
for a housing market on the rebound means you should look for a city where home
prices have dropped or, better yet increased, by anywhere from 1% to 3%. Some U.S. markets have had drops in the
double digits. Real Estate experts, according to Forbes,
agree that “price fluctuations of 3% or less generally indicate that a market
is stabilizing. If a city hovers within that range for several quarters or a
year, it’s probably safe to say that market has found its bottom.”

“New home construction, which
remains depressed for nearly every market across the country, should take off
in these markets later in the year,” Forbes says.

Forbes details Houston’s numbers.

Houston, TX
M.S.A.:Houston-Sugar Land-Baytown, TX
Home Prices, past 12 months:2% decrease
Home Prices, past 3 years:2% decrease
New Construction:38% increase
Population Growth: 7%
Job Growth:3%
Unemployment: 7.6%

To see the entire list of cities
Forbes says have hit bottom and are ready to rebound go to Forbes.com.

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About Ethan Edwards

Ethan Edwards is the Senior Writer for
TheCypressTimes.com.

Edwards’ work focuses on topics ranging from
Christian opinion, national news, world news,
Christian Persecution and politics.

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