In mid-November Chris Kelly, president and CEO of the Ebby Halliday Companies, which includes Fort Worth-based Williams Trew, and Dr. Luis Torres, research economist at Texas A&M Real Estate Center, participated in a virtual panel discussing the current and future outlook of residential real estate in Texas. Overall, the picture they painted of residential real estate was encouraging in a time when we all need some encouragement.
The discussion began with a recap of 2020 and the influence COVID-19 has had on the industry as a whole.
“We are now in a recession,” Torres said. “However, this one isn’t comparable to other recessions because this one was not caused by economic conditions, but rather a worldwide health event. So, the road to recovery ultimately depends on health outcomes, not financial ones necessarily.”
To those of us in residential real estate, he acknowledged, it is actually a little challenging to accept the reality of the recession when, for many agents and brokerages, it has proven to be as strong a year as ever.
He also made clear that because this crisis has persisted, we are more likely to see transformative, lasting changes in behavior than we would have had it been short-lived.
The economics of our state are still very attractive to people and businesses wanting to relocate here. The pro-business climate, relatively affordable lifestyle and no state income tax are great incentives to those coming from areas where that’s not the norm.”
Kelly also picked up on this point, reiterating that agents were critical in evolving the industry from non-essential to essential in those first days of the shutdown.
“Since April, they have been inventing, reinventing, and transforming how everyday business is done,” he said, “all while keeping the health and security of their clients and their clients’ assets top of mind. Communication was a key part of that. They took every opportunity to share the new tools and resources at their disposal to ensure safety was first and foremost, and that buying or selling a house in a pandemic was possible.”
Open houses, funding, and closings in particular capitalized on available technology; and these new standards will likely not be going anywhere.
Kelly talked about expectations for the local market in 2021 as well. The consensus seems to be, he said, that barring another crisis like COVID, North Texas real estate will remain healthy for the foreseeable future.
“The economics of our state,” he said, “are still very attractive to people and businesses wanting to relocate here. The pro-business climate, relatively affordable lifestyle and no state income tax are great incentives to those coming from areas where that’s not the norm. One thing we will have to watch play out, though, is the low inventory situation. Prices here have appreciated five times the rate of the national average, which is nice if you’re a seller. And thankfully, the low mortgage rates are keeping the buyers buying. Let’s hope we steer clear of a bubble.”