Despite Job Loss Related to Decreased Oil Prices, Texas Real Estate Market Remains Strong

Despite the fact that the unemployment rate in Texas fell to 4.2 percent, which represents the lowest it has been since July 2007, the state still lost 25,400 jobs in March. Effectively ending the state’s 53-month streak of continual job growth, the unemployment rate was largely affected by a drop in oil prices from $100 to $50 per barrel. The good news is that most economists agree that the state is likely to bounce back from the setback, though the improvement is likely to come at a slower pace than it has in recent years.

Oil Prices Showing a Gradual Incline

With oil prices back up to $60 per barrel, the oil industry is experiencing a slight come back. While there is still a long way to go before the prices reach the $100 per barrel they were at last summer, the growth is promising in terms of boosting the Texas economy and stimulating job growth. Still, the fall in oil prices is likely to remove a total of 150,000 jobs from the state’s annual growth, resulting in less favorable unemployment rates. On the other hand, the state has managed to add approximately 327,500 jobs in other sectors. As a result, the state has still managed to achieve a growth rate of 2.9 percent, which is still better than the 2.3 percent national average.

Building an Economy Based on More Than Just Oil

While Texas is known for its oil, the state’s economy is based on more than just “black gold.” The education and health services industry, for example, added 3,400 new jobs while the financial activities industry gained 2,400. On the other hand, the trade, transportation and utilities industry lost 10,300 jobs while the professional and business services industry lost 8,100 jobs. The mining and logging industry, which includes the oil and gas industry, also lost 2,800 jobs. Unfortunately, losses in the oil and gas industry tend to impact other industries, such as manufacturing, construction and food services.

Real Estate Market Remains Strong

Despite the problems with in the oil industry, the Texas real estate market has remained strong. Not only has the market remained very active, but there has only been a slight drop when comparing figures to a year before. In fact, sales for January and March were slightly above 2014 levels, with January seeing 15,507 in sales and March seeing 24,772 in sales. Beating out 2014 sales is good news considering that 2014 was a terrific year for the Texas real estate market. Unfortunately, this boost has not been consistent, as February saw a drop from 17,888 in 2014 to 17,740 in 2015.

Generally speaking, the greatest problem that Texas real estate seems to be facing is getting buyers interested in lower, entry-level homes.

Whether you are interested in an entry-level home or a luxury home in the Dallas-Fort Worth area, give our team of real estate experts a call. We will be happy to help you browse through the available inventory so you can find the home that is perfect for your needs and budget.

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