McAlister Investment - News Flash

July 2014

Hello everyone,

We wanted to share some good news about our Houston real estate market. Home prices (and consequently lot and land prices) continue to rise. The median price increased 11.3 percent over the past year (Houston Association of Realtors). This is a consequence of a housing shortage in both apartments and housing albeit new or re-sale. The shortage is being exacerbated by job and population growth.

We have pulled a few of the salient points from articles that support this news and that I feel you may find of interest:

The Economics Underlying the Boom in Texas/Urban Land

  • In the past year Houston’s population increased by 137,692 people.

  • Over the past four years, Texas has added 1.2 million jobs.


Lot deliveries in Dallas-Fort Worth surge to the highest level since 2008/MetroStudy since2008/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+MetrostudyReport+%28Metrostudy+Re port%29

    • Annual new home starts are up slightly from 28,721 (1Q 2014) to 28,986 (2Q 2014). Home starts are restricted by an under-supply of lots and housing labor.

    • Finished new home inventory in Houston is 1/2 what it should be. The housing market is still supply constrained.

    • Vacant developed lots are down from 37,711 to 36,312. Lot development is still not catching up or even keeping up.


Houston home sales stage rebound in June/The Courier of Montgomery County 8c89-2b7028f253b4

    • Houston housing inventory is the lowest in 40 years.

    • Days on Market, or the number of days a home takes to sell, reached the lowest level of

      all time.

Texas No. 1 in location desirability for job seekers, report shows/Austin Business Journal

  • Texas ranks No. 1 in location desirability for job seekers, and is also the top destination in the U.S. for oil and mining job-related searches.
  • The Lone Star State also had the highest total number of searchers from outside the state.
  • In 2014 Texas saw its largest year-over-year job growth in nearly 17 years, according to the Texas Workforce Commission . 


Success and the City/Wall Street Journal

  • Houston will enjoy the highest growth in new households of any major city between 2014 and 2017.

  • Many of Houston's jobs pay well.

  • Houston has seen a surge in mid-skills jobs (usually requiring a certificate or a two-year

    degree) in fields such as manufacturing, logistics and construction, as well as energy. Many of these jobs pay more than $100,000 a year.


    Kind Regards,

    David Jarvis
    Executive Vice President McAlister Investment Real Estate

  • McAlister Investment Real Estate
    David Jarvis is leaving Metrostudy for McAlister Investment Real Estate.





The Opportunity

The lack of liquidity in the market, combined with continuing loan maturities, has created the "perfect storm" in many real estate markets in the United States.