Remember all real estate markets are local and this is a reflection of the Victoria, Texas market. The residential housing market continues to improve. Looking at June and July, we see a dramatic increase in number of transactions closed. This is obviously a reflection of job creation in our local market. Median and average prices are moving upward. The inventory of available homes has been reduced to the point that we are becoming a “seller’s market”.
New home construction continues at a slow pace. Financing remains at very low rates but with tight underwriting requirements. The rental market is very tight with rents moving up and availability scarce.
Looking forward, our office is making a few predictions. The second half of 2011 will be substantially stronger than 2010. Prices will gradually inch upward. We will see a number of new industrial facilities mostly associated with the oil field. A significant number of new apartments will be announced but not completed for some time. Finally, there will be two or three new hotels announced and started. Let's see if any of this comes true. I'll report back later.