Median unit prices decreased sharply for the period. The decline is most likely directly related to uncertainty in the economy, the Presidential race and tightening of the credit market. Market comparisons for Jan 2007 & Jan 2008 for the McAllen area reflect a general down turn. MLS records reflect sales decreased by 11 units in Jan 2008, resulting in a dollar sales decrease of slightly over two million dollars.

A Large Number of Forclosures has taken a toll on the McAllen area Market

The banking system is welcoming back many of the more creditworthy customers, but the process is expected to take some time. However, Texas coastal property is the land of second homes. The majority of second home purchasers can afford larger down payments; have above substantially above average credit and enough income to lead the industry to recovery once the mortgage situation corrects itself. Most important, while economic growth is expected to continue to slow, Texas is still expected to outpace the national average.

In the longer terms, Texas’ location and cost advantages, fast-growing population and relatively buoyant economy put the state’s housing industry in a strong position to respond when demand turns the corner. Read More

Matagorda Area Climate Report
	Texas's climate has always been variable and sometimes extreme—and climate change may intensify this historical pattern. Average state temperatures have varied substantially over the past century, with a warming trend since the late 1960s. Average rainfall has increased slightly, both in the summer and winter, and extreme rainfall events have become more frequent.

Some climate change is inevitable. The U.S. needs to "climate proof" its domestic infrastructure including military installations, particularly along its coasts, to ensure it is prepared to withstand and respond to extreme weather events. As Hurricane Katrina showed, investments in risk reduction are likely to be much cheaper than disaster response. Substantial investment in risk reduction: coastal defenses, building codes, emergency response plans, and evacuation strategies. Learn More

Towards that end many coastal builders are building homes well beyond the established local building codes. The Insurance Industry has embraced these higher standards as the result in less likelihood of storm damage. These Systems Built hurricane resistant homes have added value for the homebuyer. 

TexasGulfCoastOnline.com’s demographic calculations for February, 2008

McAllen’s Top Five Potential Buyers Demographic Graphs for Feb 2008 show that most potential buyers with interest in the Matagorda area are United States Citizens from the McAllen/Alamo/Mission area followed by San Juan. Local real estate professionals would be well advised to concentrate marketing in these areas. Coloradoans and New Yorkers also expressed high interest in the McAllen area, followed by Illinois and California. Foreigner buyers made a few inquiries about the McAllen area as a falling dollar produced bargains for foreign buyers. Mexico showed the most interest followed by Canada, England, and Belgium. The events of 2007 have made the United States much more affordable for international home buyers. Severe dollar declines against the euro and pound have made U.S. homes much cheaper for Europeans. But even foreign buyers without that sort of currency advantage are benefiting from sharp drops in housing prices at a time when problems in mortgage lending are keeping many Americans out of the market. At the same time, many foreign real estate markets, especially in Europe, have experienced sharp increases in home prices. Read More