Home prices in Texas have recovered from the housing downturn as they are now 7% above the pre-recession peak recorded in the fourth quarter of 2007, according to a new report by the Dallas Federal Reserve Bank.
Only 10 states have topped their pre-recession peak (based on the Federal Housing Finance Agency purchase-only house price index) and Texas trails only North Dakota in the amount that current prices have surpassed the previous high.
The Federal Reserve Bank attributes the booming Texas housing market to the strong economy that is attracting “in-migration” as more Americans move to the Longhorn state in search of jobs.
In 2012, Houston, Dallas and Austin each attracted 38,000 new arrivals— excluding international migration.
A recent report by CoreLogic shows that four of the top 10 selling markets for new homes are in Texas. Houston led the country with 14,400 new home sales over the past 12 months ending in March 2013, CoreLogic said. Phoenix, Dallas, Atlanta, San Antonio and Austin rounded out the top six markets in terms of new home sales.
“The healthier housing market is not just a product of economic growth; it also makes its own contributions to growth,” the Dallas Fed says.
It also is having a “spill over” effect on manufacturing and service-related industries.
Meanwhile, existing home sales statewide have risen 33% since the start of the Texas housing recovery in early 2011. The annualized rate of existing home sales is “approaching levels seen just before the housing collapse.”
