Industry News

Real estate to boost Texas economy in ’06

No grounds for 'bubble' fears, economists say

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Economists at Texas A & M University's Real Estate Center say the real estate market should give a boost to the Lone Star State's economy this year. David S. Jones, senior editor for the Real Estate Center, stated in an announcement today that "real estate can take a lot of credit for getting the New Year off to a strong start" in Texas. And James Gaines, research economist with the Real Estate Center at Texas A&M University, stated, "Soaring energy prices, devastation from hurricanes and the financial burden of the Iraq war dealt powerful blows to the U.S. economy in 2005," says. "But thanks to consumers and historically low long-term interest rates, the economy continues to grow steadily. And the real estate market, particularly the residential market, is one of the reasons." Among the contributors to a favorable 2006 forecast: Home prices – "While Texas has an active, record-setting housing market, prices are increasing much more slowly than in the rest of the countr...