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-- -- -- -- OK a lone star state Texas is -- stepping on to the list of top markets for new home sales.
According to core logic Texas -- -- at the top ten selling -- think at that four of the top ten for new homes including number one Houston.
Here to help us understand this housing boom -- -- Gaffney the executive editor of house requiring joins me now from Dallas Jacob.
I have to tell yet I'm not surprised with Texas doing well great business climate.
No state income tax these are people who know how to do it right and now it seems all of corporate America is moving to the lone star state.
Well absolutely it's it's been a pretty amazing few years here and it's really beginning to heat up.
Now the critics are saying that it might become a little overheated there are some concerns that markets such as Austin may be overvalued a bit but when you look at the the jobs when you look at the economy.
Everything is going great I mean Houston is a center.
For petroleum and natural gas Dallas like your previous guests mentioned a lot of those banks have their mortgage servicing shops here.
-- you mentioned the corporate tax and that's a very excellent point we have so many tech companies in Dallas Fort Worth.
That people are flooding into the state now we'll get to a point where too many people -- into the state.
Potentially but the big problem texas' having of course is supply constraint if you try to buy a home and -- 300 to 500 K mark you're facing a bidding war.
Wow well I have friends who moved from New York City to Texas and -- Austin remains very attractive it's -- you know you go to -- you -- to move to Austin.
Let me tell you the one fact that blew me away on taxes and one of the reasons why I think -- housing market has room to go out.
They have had 19%.
Growth in so called stem job science technology engineering and math over the last ten years.
And the median salary in those industries 82000 dollars of course -- -- an engineer you make a lot more money than that.
Isn't this helping to propel growth there.
Well -- exactly what it what it is workers need.
And lines at those nice salaries.
They -- one homes and they're looking to buy them and.
The thing about those stats is they're not unique to that one sector they are a bit high I mean civil engineering jobs are up 12%.
But home construction jobs are up 6%.
All we we're seeing gains in most things that we are.
There are a few indicators.
That these are a bit -- and one is that we are getting a lot of influx of unskilled labor into the state.
Nothing new there but there is also.
The issue that's permits you know homes that are going to be adults.
Well people filing for permits is is slowing down.
But it seems like.
Every week a new mortgage banker a new mortgage lending division is opening up a retail shop somewhere in Texas well and another anomaly here foreclosures remain high in Texas why is that.
It's the I'm I'm a Texas homeowner I'm not a Texas natives but.
I will say it was explained to me when I bought my house that there is no pay no state clause in the mortgage and -- their rights they don't mess they don't mess around down here.
They will they will kick you out of your house -- decision ninety days delinquent.
And that's bad for borrowers of course is not the same levels of recourse.
But you see in other judicial states but they don't mess around here so that keeps it moving that their lender can.
Blue chip out and sell it on to the next person and well -- I.
Mark it -- it puts a floor under the market.
Because you can you don't have the same experience that -- had most of the rest of the country where.
Yep it was really just a clog of people you weren't going anywhere any time soon they sat in their houses.
That banks had to sit with the mortgages on their books and it stopped the entire market.
Ninety days maybe that makes sense take -- thanks for coming on the show tonight great to see yeah.
Thank you so much.
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