El Paso housing market continues to improve

EL PASO – The number of home sales in El Paso rose significantly last year. The 1,575 home sales in fourth quarter 2012 represent an increase of 19 percent on a year-over-year basis, according to the most recent Real Estate Quarterly report published by Coldwell Banker in El Paso. At the same time, home prices increased 5.2 percent.

There was a 5.9-month supply of housing in the $150,000 to $200,000 range and 12.8-month supply of housing in the $310,000 to $390,000 range in 4Q 2012.

El Paso’s home inventory remained stable, declining by 100 homes, or 2.9 percent, in 4Q 2012.

Nationwide, the real estate market turned around last year. However, just as the housing market in El Paso never fell as fast or as deep as it did nationwide when the housing bubble burst several years ago, neither is the local market rising as rapidly as many others are now.

The big surprise in 2013 may be how fast home prices increase nationwide, according to Dr. Mark Dotzour, chief economist at the Real Estate Center at Texas A&M University. Some markets like Phoenix, where home prices rose more than 30 percent in 2012, have already seen significant increases.

Dotzour is bullish on the U.S. economy in general and said all the pieces are in place for continued economic recovery this year and increased hiring in 2014.

Listen to Podcast 163 for this story…and more!