The Herald-Zeitung

Texas is still a buyer’s market.

At least that’s what local Realtors and at least one economist say.

As the nation’s foreclosure rate reaches 32 percent, the rate in Texas has been declining steadily, down 14 percent since last year.

Jim Gaines, research economist for the Real Estate Center at Texas A&M University said the Texas housing market, including the Comal County area, is doing very well compared to the rest of the nation.

“We’re being compared to large, high-growth states like Florida, New York, California and Illinois and our housing market is in much better shape,” Gaines said. “This is partly because about four or five years ago, we didn’t have the big run-up in prices that many of those states had. That has really been the saving grace for Texas because we’re not having to foreclose.”

Gaines said Texas was hit by the recession more modestly and actually had been adding jobs until recently, creating a more stable housing market. Texas also lacks over-building in many areas so there is not an excess of inventory to drive home prices down.

“It is relatively easy to buy land, sub-divide it and build homes (in Texas),” Gaines said. “This is a very good time to buy a home, but people must buy homes they intend to live in for four to five years. Homes are more affordable and mortgage and interest rates are below 6 percent. First-time homebuyers, meaning anyone who hasn’t owned a home in the past three years, can also qualify for an $8,000 tax credit right now.”

The federal housing tax credit is available to first-time home buyers purchasing any kind of home — new or resale. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009, and before December 1, 2009. The purchase date is the date when closing occurs and the title to the property transfers to the home owner.

However, Gaines said lenders are more conservative with loans due to the recession.

“About a year ago, lenders got a little tougher as to who they would give money to,” Gaines said. “People will have to face stricter qualifications when being considered for a loan.”

Although Gaines said selling a home is going to be more of a challenge right now than buying one, he said Texas is definitely the best market to do so.

“A lot of people who don’t have to sell immediately because of job relocation or whatever it may be, are sitting on the sidelines and waiting,” Gaines said. “This is not necessarily a bad thing.”

Angela Walls, president of the New Braunfels and Canyon Lake Board of Realtors, said the average single-family residential home price in Comal County is $171,633 and there are about 708 of those homes currently on the market.

Walls also said the area continues to grow.

“The Hill Country is a very desirable area and we are constantly seeing people from out of state and the Houston and Dallas areas moving here,” Walls said. “We’re seeing new neighborhoods and developments going up all the time and that is a very good sign. We still live in a strong market.”