The Houston Chronicle's Michelle Sandlin sat down with Ted Nelson, the president of Newland's central region, to discuss what was going on with Newland and the Houston market in general. Here are some highlights:
Nelson on the inventory situation in Houston:
Over the last 12 months, both builders and developers have become more cautious, because of the ongoing energy situation, but I think that inventory is a bit more in balance. I just read an article about the retail inventory, which is only at a 3.6-month supply. A normal housing market would be a six-month supply of inventory, so if you go with that theory of a normal market, then we are still under-supplied in terms of inventory.
The impact of energy woes on the Houston market:
I think that there has clearly been an expectation that Houston is going to fall, but despite all of the bearish news, the Houston real estate market has been extremely resilient. Some of that is because the new-home market has been operating at about 50 percent of total demand since the recession. So, we've been selling about 50 percent of what has been the long-term norm in terms of new housing.