The Federal Reserve Bank of Dallas has just issues this update on the Houston economy and its real estate market...
"... Houston’s existing-home market is holding up better than many other markets across the U.S., its health underpinned by fewer past excesses than others and solid continued job growth. July sales were up 1 percent over July of last year, although inventories were up 12 percent. The weakest part of the market is homes priced under $150,000, suggesting that tighter lending standards primarily are slowing entry-level purchases. Postings and foreclosures are significantly higher for Harris County, and the rate at which postings are being foreclosed is also rising.
The value of new residential permits issued by the city of Houston is up 8 percent year to date but down 14 percent in July when compared with a year earlier..."
Federal Reserve Bank of Dallas, September 2007
To read the full article, click here. And yes, these tighter lending standards are affecting the Houston economy. We real estate professionals are dealing with those restrictions in all price ranges, not just the entry-level homes.