The Texas Association of REALTORS® provides media outlets with the Texas Quarterly Housing Report, which reflects what's going on in 47 of the state's markets.

The latest report shows that real estate prices during the second quarter of 2011 indicate strength in the Texas market:
The median price was $150,400, 1% higher than the same quarter of 2010. The average price in 2011-Q2 was $201,288, 4.6% higher than 2010-Q2.

The increase in the average price of Texas homes indicates more activity among higher priced homes. Buyers of higher priced homes have been less affected by tightened mortgage lending standards, and real estate has been an attractive investment vehicle due to instability in other investments, such as securities.

Another important market indicator is the inventory of homes available for sale compared with the demand to buy homes. Measured in months, Texas had 8.1 months of inventory in the second quarter of 2011 compared to 7.2 months in Q2-2010. This is still fairly balanced, with some of the additional inventory believed to be banks resuming foreclosure proceedings.

March saw another increase in pending home sales, with contract activity rising unevenly in six of the past nine months, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit.

The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

According to the National Association of Realtors, home sales rose in November marking the third gain in homes sales in the past four months. Existing sales grew 5.6 percent from October to November of 2010. Home buyers bought homes at a seasonally adjusted annual rate of 4.68 million. The realtor association predicts that sales for 2010 will be 4.8 million. The November growth was propelled by a 6.7 percent rise in single-family homes while sales of condominiums dropped 1.9 percent. Home sales were up all around the country particularly in the West where sales rose 11.7 percent, sales in the Midwest rose 6.4 percent, 2.9 percent in the South, and 2.7 percent in the Northeast.

Consumer spending grew at a 2.4 percent pace in November. This is the largest increase since the initial three months of 2007 yet less than the 2.8 percent estimate the previous month. During a December 20^th interview on Bloomberg Television, the chief executive officer of Saks Inc., Stephen Sadove mentioned “we’re clearly seeing an improved environment, especially as the markets have held strong”.  

X-Fab Texas and a Minnesota company are collaborating on a project that will lead to Lubbock’s having the world’s highest-volume solid state battery production facility, the Lubbock Economic Development Alliance said Monday.

LEDA’s board unanimously approved a $900,000 jobs and capital investment incentive package that’s expected to result in 77 new jobs with annual salaries of about $3.2 million. The first phase of the X-Fab project with El Elk River-based Cymbet would mean about $12 million in capital improvement expenditures.

Today’s announcement included incentive deals for two other companies.

B&J Welding Supply, which has offices in Amarillo, Lamesa and Snyder, is receiving a $105,000 jobs incentive deal to open its corporate headquarters here, creating 14 jobs and annual salaries of nearly $1.1 million along with capital investment of $1.5 million.

In addition, Jack in the Box franchisee Mo-Jack LLC is receiving a $50,000 job incentive deal to move its corporate headquarters here from Midland.

The incentives support six new jobs locally and an expected capital investment of $11 million.

“It’s a very exciting Christmas present for the entire city,” said John Osborne, LEDA’s chief executive officer.

The X-Fab deal took center stage as the first phase of a project that could create as many as 150 jobs here over five years.

Production of Cymbet’s EnerChip battery, about the size of a computer chip, is expected to begin in the second quarter of 2011.

“We’re very excited about working with Cymbet as a manufacturer,” said Lloyd Whetzel, president and chief executive officer of X-Fab Texas, adding the partnership is expected to “contribute to the long-term stability of X-Fab in Lubbock.”

“Cymbet aligns well with our long-term strategy,” Whetzel added.

Cymbet CEO Bill Priesmeyer had intended to be at Monday’s announcement, but last weekend’s snowstorm closed the Minneapolis-St. Paul airport.

In a statement delivered to reporters, Priesmeyer said the company had searched for about 18 months before selecting X-Fab Texas as the manufacturing partner.

“The proven expertise, capabilities, genuine partnership attitude and world class people we sought are right in Lubbock,” Priesmeyer said in the statement. “We have absolute confidence and commitment this will be a lasting relationship that will bring good job growth to Lubbock.”

Meanwhile, the head of B&J Welding said people in Lubbock might be familiar with the company name because of delivery vehicles passing through the city.

President Steve Hodges said the company’s plans for the site it has bought near 50th Street and Martin Luther King Boulevard include a warehouse, distribution, customer service and retail operations.