World Report

mericans are little different from the English when it comes to watching house prices. The major difference is that the former have much more space than the latter in which to create their dream home – and Texans have more space than most.
Houston is the fourth-largest city in the US, and Dallas the third. Both have seen tremendous growth in the past decade, as have the state capital Austin, San Antonio and other cities.
There has been a trend, primarily among young professional families, to move out of the centre of the cities
to the leafy suburbs where houses are cheaper to buy.
In Houston, prices in the apartment market, one of the healthiest in the US, have been steadily rising. The population of the city, with an enviable infrastructure and a bustling port – the nation’s second largest – continues to expand.

Houston was recently named one of the four finalists in the US bid to host the 2012 Olympic Games. Construction of a light rail system has been approved and federal officials have committed themselves to greatly reducing air pollution.
The September terrorist attacks on the US appear to have made little impact on the Texas real estate market. Propped up by low mortgage rates, Houston house sales registered a significant gain in October. And home resales were the highest ever for the month, according to the Houston Association of Realtors (HAR).
The association reported that some 4,376 properties were sold in the area, up 2.3 per cent on last year. The HAR predicts that this year will be the best ever for used home sales.
The average price of an existing family home (as opposed to new build) is a shade under $124,000. Prices have been rising steadily as Houston has experienced strong job growth. The area has added 43,000 new jobs in the past year, although the recession may result in layoffs.

Fedrick
‘Sales have been consistent in Houston and San Antonio’

Lonnie Fedrick, president of Newmark Homes, which designs, builds and sells high-quality homes, says: “Operations in the Texan market have seen some improvement, especially in Houston and San Antonio where sales have been consistent. The Austin market has shown improvement since the devaluation of the hi-tech industry, and hopefully this market will continue to improve.”
Newmark’s third-quarter revenues were $163 million, up 11.5 per cent on the same period of last year. Net income increased 18.6 per cent to $6.7 million. For the first nine months of this year, revenues increased to $451.4 million, up from $447.7 million in the same period of last year. Net income rose 8.3 per cent to $19 million.

Mr Fedrick and a now retired partner established Newmark in 1983. Ten years later, Taiwan-based Pacific Electric Wire & Cable bought 80 per cent of the company through its US subsidiary, Pacific Realty. Greek construction firm Technical Olympic bought Pacific Realty’s stake in 1999.
Mr Fedrick says Houston’s diversification from oil has brought it a less cyclical economy. “We have the port, the Texas Medical Center and a Continental Airlines base,” he says. “Unlike California, for instance, where things got overheated and the downturns are severe.”
He adds: “Population growth has been good, too. The economy has been performing well, with a lot of industries coming in including a lot of hi-tech firms. We also have a lot of cruise lines coming into Houston and that is a pretty good indication. All the major sports are represented here, we have really good theatre and the schools are good.”