Houston Housing Update by the Federal Reserve BankThe Federal Reserve Bank of Dallas issued the following update on the Houston housing market ...

June 2007

"A slower U.S. economy and a pause in domestic drilling have taken the pressure off the Houston economic expansion, with growth ebbing across the board in the first half of 2007. Despite slower growth, however, labor markets remain extremely tight for workers at every skill level, from scientists and engineers to entry-level salespeople. The local unemployment rate is at its lowest level since 2000. Some real estate markets, such as office and industrial, are still trying to catch up with past growth...

"Houston-area home sales hit a plateau in the first half of 2007. Existing-home sales through May are basically flat compared with the first five months of 2006. New-home sales were down early in the year, but sales had been unsustainably high 12 months earlier. Both new and used markets show particular weakness in sales of lower-priced homes, suggesting that the subprime issue may be taking a toll locally..."

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