Reported by Denise Underwood, REALTOR, CRS, GRI, ABR, Broker, Co-Owner
Updated December 20, 2008.
Current Market Rating: 2
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Current Price Trend: 3
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Falling
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Market has slowed a bit as is usual for this time of year. There are approximately twice as many houses on the market as there were in spring and summer. People continue to move to the Midland-Odessa area for new jobs. Today, December 20, 2008, normal holiday slow-down is amplified somewhat by recent changes in oil and natural gas prices. People are still buying, but some are on the sidelines waiting for the holiday season to pass and to see if prices begin to soften. Porperties that need a lot of updating are taking longer to sell. This trend started in August and continues. 4 BR SF homes under $200,000 that had been hard to find, are in better supply. Recent substantial lowering of mortgage rates has seen the beginning of a re-financing surge and these very low mortgage rates should help prices to firm as buyers rush to take advantage of rates unseen in recent decades. Sub-Prime mess has ended loans to poor credit risks. Loans with 100% financing are still available for people with good credit and good jobs. Demand destruction caused by high oil prices and worldwide economic turmoil has softened oil prices and WTI currently trades near $34per barrel this week. At this price, we are back where we were 48 months ago. If you remember 48 months ago, the Midland economy was healthy and growing. Few economists expect prices to remain this low, there will be a slowing of the economy until prices improve. For now, however, the economy in Midland and Odessa is very good. Lenders have no problems loaning to good credit risk clients, this include mortgages and loans to businesses. New construction continues, but it has slowed somewhat and re-sales are staying on the market a little longer, but they are still selling...but there are more choices, so it takes a little longer to sell....really just a normal amount of time. As mentioned earlier, inventory has increased with the approach of Christmas. Prices are firm on great properties and softening on properties that are missing something. Economy is stable, but slowing down. Economists predict a very healthy economy for the Midland - Odessa Market. Buyers currently have a larger inventory of homes to choose from. Builders continue start new homes and developers are adding new streets and platting new subdivisions. Midland is still a bright spot in the national economy. Buyers still need to be ready to write a contract if something good is listed...it won't last long.
ZIP Codes: 79701, 79705, 79707, 79703 Approximate Location Boundaries: Midland County
Location Characteristics: Midland is the heart of the "Permian Basin". Noted for its friendly people and great weather, many people choose to retire here. Great golfing weather, large medical community and many larger city amenities. New airport offers access to the world.
Higher oil & gas prices continue to drive the local economy and the rising real estate market. Sales of real estate in the Midland-Odessa area would be even hotter if people moving here could sell their homes in cities they are leaving to move to our area.
If you have questions about buying or selling in the Midland - Odessa market ask for our Free Relocation Package or call Toll Free for your personal real estate consultation (888) 593-1125.
