Hitting the news this morning I see that the sub-prime mortgage fears have also hit on the other side of the Atlantic with the UK real estate market in a bit of a fizz over lending rates and repossessions (foreclosures for us, Americans).
It makes for somber reading for sure but in all this gloom there is a ray of sunshine. While the global real estate market is in a bit of a morass thanks to the sub-prime lending spree, it also shows how and why specific real estate markets like the Texas Real Estate scene, for instance, have managed to escape the worst of it.
Texas is big in recreational properties, hunting land, ranches and lake front properties, all of which, incidentally can be found in the pages of Texas Real Estate magazine, either online or in any of our two publications covering Central Texas, North Texas and East Texas.
Traditionally none of these properties attract potential high credit risk buyers which is why the boom (and now bust) we are witnessing in the national and global real estate scene has not significantly affected Texas real estate or, I should say, has not affected the Texas ranch, farm and Texas lake property market.
Texas, of course, does not exist in a vacuum and Texas real estate attracts a lot of out of State attention for investment and second homes. This amount of money coming into the State is, at the moment, if the figures are right, in stasis waiting to see what happens next.
The local money however which was into the purchase of a recreational property, some Texas land, an investment property, a farm or a Texas lake property, especially in East Texas and North Texas, that money, is still active and ripe for investment.
Real estate of course, even in Texas, is prone to what is called consumer confidence, so some slow down is being experienced in both property appreciation prices and demand, right now, but, overall, we have a strong, buoyant market which looks solid enough to weather the storm and help many savvy real estate investors emerge looking good.