Seller’s market prevails in Midland

MIDLAND – The 15.3 percent growth in median home prices year-over-year for October 2014 marked a rebound from September and August, which showed sluggish growth rates of 1 percent, according to the Real Estate Center at Texas A&M University.

Midland has averaged a 10.9 percent growth rate in median prices for 2014 through October, and average home prices grew by 12.4 percent during the same time period.

These increases have happened despite a 38.6 percent plunge in the price of oil since June 12, 2014 when West Texas Intermediate (WTI) traded at a peak of $107.95 per barrel.

WTI is now trading at $65 a barrel, according to the Energy Information Administration and NASDAQ.

During the same period of falling oil prices, Midland’s median home prices have continued to rise by an average of 9.5 percent from June 2014 through October 2014.

While other areas of Texas have an average of three months real estate inventory, Midland’s average is only 1.7 months, according to Warren Ivey, regional vice president of the Texas Association of Realtors.

The low inventory exists, despite the many new developments being built to the north and west parts of the city, because people continue to move to the Tall City.

“The hardship is sustained by the buyer and…the tenants who are looking for rental property,” said Ivey. “They’re really getting stumped; they’re finding prices that they never would have thought when they come into town to look at rental properties…”

Read more at the Midland Reporter-Telegram.
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