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Bank and HUD Foreclosures Remain a Major Problem for Houston

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By : John Cutts    99 or more times read
Economists stated that huge supplies of bank and HUD foreclosures will remain a major concern for the city of Houston, Texas. However, most of them claimed that a gradual improvement is happening in the city's economy, buoyed by a more active tourism industry and steady energy rates.

The number of Houston foreclosed homes is expected to continue to increase in 2011. This, economists have stated, will remain a major factor that will weigh the city's economy down. However, they did claim that rising hotel occupancy rates will help balance the economy, with the whole tourism sector showing signs of more activities, particularly the restaurant businesses.

Another factor cited by economists that can help revive the area's economy is the energy industry. So far, they stated that prices of energy products are holding steady, which is good news for the overall economy of the region. In addition, increased number of deals, including mergers and acquisitions, are happening in the industry. Economists are hopeful that more business deals within the energy industries will lead to further interest from outside travelers and companies which can help rally the housing market, just like what is happening to foreclosures in Indiana.

Other sectors that can play a big role in cutting down the number of bank and HUD foreclosures cited by economists are manufacturing and the trucking industry. According to them, improvements in these businesses will help attract more people into the city and will provide potential homebuyers to Houston in the coming months.

The main threat to the metro area's economy, aside from foreclosures, is the job market. Economists stated that private business hiring is still low, although there have been some improvements compared with previous periods. At the public sector, unemployment may increase if news of coming government cutbacks is true. They also stated that overall productivity should improve before companies can add more jobs. So far, the manufacturing sector is doing just that, although help from other industries are needed as well.

Although most economists agree that the oversupply of bank and HUD foreclosures will continue to weigh down the housing market and the economy in general, they also agree that the city is showing some positive developments. They stated though, that any improvement will be gradual and will not pick up pace until next year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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