Looking back to early 2008, the year actually got off to a decent start. But sales wilted during the summer, which is typically a brisk season. September saw a brief recovery, but sales again dwindled in November and December.
John Morrison, president of Temple-Belton Board of Realtors, said December numbers mirror 2004. With that in mind, he says, the area is still in good shape. It’s hard to continue topping the previous year’s numbers. In other words, what goes up must come down.
Morrison said the diversity of jobs in the area, with health care carrying the bulk of the load, helped Bell County avoid layoffs seen in cities like Detroit, where if one segment suffers, the whole area is affected. Steady jobs, of course, are paramount to a healthy housing industry.
Troy Glasson, director of government affairs for the Temple Area Builders Association, said housing starts in Temple are down 21 percent, comparing 2008 to 2007. Builders are taking a cautious approach.
By keeping housing inventory low, prices remain strong, Glasson said. As of October, the area’s current inventory of homes is 6½ months. This compares favorably to the national average of 11.2 months, according to the National Association of Realtors figures from last November.
“In these uncertain times this is a sign that our area builders are being prudent,” Glasson said. “This is a similar trend as we saw between record years of 2006 and 2007. Their conservative approach is what helps keep housing prices in check.”
The building industry is important to Bell County’s economy, Glasson said. It’s one of the largest employers in the area.
“In Temple alone, it contributes about 1,700 jobs - as mentioned in a 2007 housing analysis of the Temple-Belton area,” Glasson said.
Mark Sprague, an Austin partner with Residential Strategies, a market research firm, agrees with Glasson. By cutting back on new home starts, prices hold steady.
“You haven’t got a lot of conceptual deals out there” in Bell County, Sprague said. “Unlike Austin, you don’t have a bunch of communities that could go on the market should the market turn hot. And that will protect everybody’s equity. If you see a bunch of homes that come on line at the same time, obviously that deteriorates pricing because you have more supply than need.”
