The strength of the Houston economy has kept us going for a year after the rest of the nation slipped into recession. However, while real estate is local, lending is not. And it is becoming increasingly difficult to finance home sales in Houston. Here is what the Federal Reserve Bank of Dallas has to say...
"Houston never experienced the excessive price appreciation that marked the national housing downturn’s early stages. But not even surging job growth has held off the loss of subprime and other high-interest rate lending. Existing-home sales fell 8.6 percent in October compared with October 2006, after a September tumble of 16.7 percent. New home sales were off 41 percent in September, with traffic off 18 percent. Builders have reacted quickly, and new home inventories are now below last year’s levels..."
Our hope remains that, without the hyper-inflated real estate markets seen elsewhere in the country, the Houston economy will weather this storm as well.