NORTH PADRE ISLAND HOUSING REPORT – JANUARY 2024

Corpus Christi Association of Realtors has posted the North Padre Island Housing Report for January 2024.

Our active listing median prices have dipped the past month to $356,000 this past month which is an 8.5% decrease from where it was compared to last January at this time! CCAR shows us the data that is increasing for active listings by 77.9% with a total of 233 properties this past month while inventory Has risen at 7.5 compared to 2.5 last year at this time.

Days on the market for sale increased this past month with an average of 84 days and the highest categories for sales with 31.3% of all the sales being priced between $300,000 – $399,999. The market is still holding quite well moving into 2024 with properties available across many pricing areas. North Padre Island’s newest development Whitecap NPI is open for sales of their lots in Phase 1, Contact Coastline Properties Agent Ms. Amber Spicak at their office for all pre-sales. amber@coastline-properties.com

The Consumer Price Index (CPI) rose 2.9% on a year-over-year basis in January, following a 3.4% gain in December. The largest contributor to headline deceleration was lower year-over-year prices for gasoline in January (-4.0%) compared with December (+1.4%)

Cheri Sperling is the owner of Coastline Properties with a dedicated team of agents specializing in residential listings, sales, and property management in the Padre Island real estate market. Coastline’s team is the most knowledgeable real estate office on Padre Island. No pressure style, patience, and an intimate understanding of the local market. They go to work for you!

 

North Padre Island November 2023 Data (Click Pic below for Larger Image)

north-padre-island-housing-report-december-2023

February 2024 Heart Health Month

The month of February is designated as Heart Month. This month strives to educate the
public about the importance of improving heart health. This endeavor aims to help people
identify and understand helpful adjustments that can be made to increase heart health. The term
“heart disease” refers to several types of heart conditions. In the United States, the most common
type of heart disease is coronary artery disease, which can lead to heart attack. You can greatly
reduce your risk for heart disease through lifestyle changes and, in some cases, medicine. There
are several everyday things that we can do in achieving healthier lives for 2024. With this
designation, both the American Heart Association along with the US Centers for Disease Control
and Prevention (CDC) have put out some great information.

Heart disease is the leading cause of death for men and women in the United States.
Every year, 1 in 4 deaths are caused by heart disease. The good news is that heart disease can
often be prevented when people make healthy choices and manage their health conditions.
Communities, health professionals, and families can work together to create opportunities for
people to make healthier choices. National trends show heart disease death rates are declining
more slowly than they have in the past, especially among adults ages 35 to 64. The CDC
Division of Heart Disease and Stroke Prevention and Million Hearts is focused on letting
younger adults know they are not immune to heart disease, but that they can reduce their risk—at
any age—through lifestyle changes and by managing medical conditions. For more information
and statistics about heart disease visit https://www.cdc.gov/heartdisease/index.htm.

Here are some tips from the CDC to take control of your heart health:
 Find time to be active. Aim for at least 150 minutes of physical activity per week.
 Make healthy eating a habit. Small changes in your eating habits can make a big
difference. Try making healthier versions of your favorite recipes by looking for ways to
lower sodium and trans-fat. Additionally, try to incorporate more fruits and vegetables.

 Quit tobacco. Smoking cigarettes and using other tobacco products affects nearly every
organ in your body, including your heart. Visit the CDC website for great tips on how to
quit. https://www.cdc.gov/tobacco/campaign/tips/quit-
smoking/index.html?s_cid=OSH_tips_D9385

 Know your numbers. High blood pressure and high cholesterol are major risk factors for
heart disease. Ask your health care team to check your blood pressure and blood
cholesterol levels regularly and help you take steps to control your levels.
 Stick to the “script”. Taking your medications can be tough, especially if you feel fine.
However, focusing on your medication routine is important for managing and controlling
conditions that could put your heart at risk.

The American Heart Association (AHA) is an organization that helps bring heart health
knowledge, leadership, and resources to all levels of government. Whether it is the federal, state,
or local level, the AHA identifies ways of educating the public and develops systems of care that
work to help acute conditions, which will result in helping to improve the patient’s outcomes.
Many of these systems coordinate impacted people to help them recover, while also improving
the cost-effectiveness of their care. These systems of care generally are tailored by more
localized methods that focus on certain regions of the nation and individual states. The
Association uses collected data that helps a seamless transition from each stage of care. It is with
these types of awareness and outreach that they hope will save lives. If you would like to learn
more information about healthy tips on cardiovascular health, you can visit the American Heart
Association’s website at www.heart.org .

If you have questions regarding any of the information mentioned in this week's article,
please do not hesitate to call my Capitol or District Office. Please always feel free to contact my
office if you have any questions or issues regarding a Texas state agency, or if you would like to
contact my office regarding constituent services. As always, my offices are available at any time
to assist with questions, concerns, or comments (Capitol Office, 512-463-0672; District Office,
361-949-4603).

– State Representative Todd Hunter, District 32

Rep. Hunter represents Aransas County and Nueces County (Part). He can be contacted
at todd.hunter@house.texas.gov or at 512-463-0672.

TEXAS HOUSING REPORT – AUGUST 2023

The residential real estate market in Texas had a successful month in August. Total home sales increased by 9.5 percent on the consumer side and construction permits increased by 5.3 percent on the supplier side despite continuously high loan rates. After seven straight increases, the median price fell amid the growth for the first time. Although the price decline appeared significant, it was just $800 and might be an indication of a balanced market. The housing market does not indicate any big turbulence anytime soon because many sellers are trapped with pandemic-era low rates and many purchasers are finding it difficult to keep up with rising costs. Rebounded Home Sales Speed up Market Time by Two Days Amid a slowdown in the real estate industry, Texas’ total home sales improved from last month’s
three-year low after reaching over 27,000 transactions in August. The sales activity picked up at an impressive rate of 9.5 percent month-over-month (MOM), albeit the activity level was still 8 percent lower than last year’s reading. Sales ticked up uniformly this month in all four major metros, growing between 0.8 percent to 9.7 percent.

READ FULL REPORT HERE FROM TEXAS A&M UNIVERSITY (CLICK HERE)

BBB Tip: Maintaining and servicing your HVAC System

Texas residents are no strangers to triple-digit temperatures during the summer months and
understand the importance of keeping cool during heatwaves. However, when the heat
arrives in force, many residents learn their current air conditioning systems cannot keep up
with demand. When indoor temperatures reach unbearable levels, consumers turn to
reputable HVAC contractors to help service their system or install a new one. Similarly to
hiring any other contractor to work on your home, Better Business Bureau (BBB) reminds
consumers to research a chosen company before providing payment or signing a contract.

Purchasing and installing a new HVAC system

HVAC systems are one of the most significant energy consumers in a typical home, making
it important to ensure they work as efficiently as possible. Although the average HVAC
system should last 10-25 years, many must be replaced sooner if they have been
overworked by insufficient insulation and unsealed air leaks. Like other major household
appliances, the cost of an HVAC system includes three elements – the purchase price, the
cost of repairs and maintenance, and the cost to operate it.

Before purchasing a new unit, conduct an energy audit to help you detect energy waste,
gauge the efficiency of your current system, and determine if conditioned air is moving
correctly. Many utility companies offer free or low-cost energy audits, but you can hire a
specialist to do a more comprehensive audit. Hiring a specialist will most likely cost more
money, but their experience is often invaluable when purchasing new systems.

Take steps to weatherize your home to keep cold air in and hot air out, or vice versa in the
winter. Check the caulking, weather stripping around doors and windows, and wall and
ceiling insulation. Weatherizing your home may be all you need to help your air conditioning
unit maintain a cool temperature indoors and will help reduce energy demands. An
adequately weatherized home may also enable you to install a smaller, less expensive
system to achieve the same results.

Consider energy efficiency from the start of your decision-making process. All air
conditioning units must meet minimum energy efficiency standards set by the Department
of Energy, but many products exceed the standard resulting in less energy used to operate
and run the system. Check if your energy provider offers a cash rebate or tax break for
buying and using energy-efficient products and consider it when comparing the operating
costs of different systems.

After installing your new system, the contractor should provide at least one call-back service
free of charge to check it is operating correctly. Double-check that this service is included in
the written agreement. Many contractors also offer service contracts which often contain a
limited number of service calls per year and emergency repair service. If you decide to
participate in a service contract, be sure that it describes what parts and services are
provided. Compare the service contract with the manufacturer's warranty so you aren't
simply duplicating the coverage you already have.
 
HVAC maintenance and repair tips 

Keeping your system well-maintained will prolong its life and save you money. Spring or
early summer is the best time for servicing cooling systems, while summer or fall are the
ideal times for servicing your furnace. You can also do routine maintenance by replacing
disposable filters or cleaning permanent ones. Before calling an HVAC contractor, check your

system’s model and spend the time to understand the license and insurance requirements
for contractors. Find more information about licensing requirements and verify your
contractor has a valid license, as recognized by the Texas Department of Licensing and
Regulation, by searching the contractor’s name or license number at TDLR.Texas.gov.
Contractors that do not readily provide this information should be treated with caution.

If you need repairs, be sure to get multiple written estimates for the job. BBB recommends
obtaining an estimate from a minimum of three contractors before settling on a final
decision to help understand the standard price for the project and have an informed
discussion with a chosen contractor. Estimates should include a complete description of
additional work required to install or repair a system, including installing ducts, registers,
electric wiring, and any other work needed.

Find a trusted HVAC contractor near you at BBB.org and review more home maintenance
tips at BBB.org/HomeHQ.

Real Estate Scammers on Social Media

In the news A Coastal Bend real estate agent spoke about a recent scam on social media.

There are criminals targeting renters and future homeowners through Facebook Marketplace.

We are seeing sales listings that they are scraping from zillow, trulia and personal websites being targeted by a scammer claiming to be the homeowner.

When realtors list home photos and details about the house become public, so it’s easy for scammers to steal them and put them on Craigslist or Facebook Marketplace.

The scammer has the tendency to attract interested people by posting the property with a very attractive rate where people will see it and be very eager to take action and contact the poster. They use very persuasive language creating urgency for buyers to act fast.

Its prime season for scammers, so if you are in the market for a new home, make sure to look out for red flags and double check a listing you may see on Facebook or Craigslist with other sites before you inquire about it.

The scammer usually does not answer phone calls, they push you to contact them through email or text.  They are very aggressive with trying to get deposits from you as well. They don’t want to let you see the house, which is a super red flag. So please report incidents like this directly when you see it taking place.

It’s always best to do your homework before renting or buying, ask the right questions, and if it’s too good to be true, it probably is. He suggests if you do see an ad like this, don’t hesitate to contact us so we can check the legitimacy for you.  Let’s all look out for each other!

TIPS FOR WHEN A HOMEOWNER PASSES AWAY

The home changes hands.  It could pass to a surviving spouse or child whose name is on the deed, or be bequeathed to the family as part of the homeowner’s estate.  Often  times, the family simply wants to sell the property.

  1. Talk to the Executor:  The deceased homeowner’s will should name an executor.  Only that person can make financial decisions for the estate, including setting the asking price.
  2. If No Will….if the homeowner died without a will, the estate may go to probate court.  The purpose of court involvement is to protect the rights of the family, those entitle to receive property, and the creditors of the deceased person’s estate, according to the Texas Bar Association.  State law governs who inherits what if the estate has no will.
  3. Bill to Pay?….The estate is required to pay outstanding debts.  The executor must make sure the estate has enough money to cover them.  Texas is one of nine community property states, meaning relatives may be required to pay off the deceased person’s debt.  One will want to make sure there is nothing preventing the sale of the property.

It is stressful to handle the paperwork and make decisions while mourning.  Always be understanding and sympathetic.

~ Cheri Sperling, Owner Coastline Properties

 

BBB Business Tip: 7 ways small business owners can cope with inflation

U.S. consumers are experiencing the most significant 12-month increase in prices since
1981, and many small business owners are feeling the pressure. With the inflation rate
hovering around 8%, according to the Bureau of Labor Statistic’s Consumer Price Index,
many small business owners are experiencing increased costs to conduct business and
shrinking profit margins. Desperate to remain profitable, entrepreneurs are looking at how
they can cut costs or raise prices without scaring off their customers.
High inflation rates are driven mainly by significant increases in food, shelter and gas prices.
Increased energy prices, supply chain disruptions, and labor shortages add to a business
owner’s expenses. With so many cost increases, what can small businesses do? BBB
recommends the following to minimize the impact of inflation on your business.
Ways your small business can cope with inflation.

  1. Reduce your expenses. Be intentional about where your business is spending its
    money. This means reviewing your current spending and determining if it aligns with
    your strategy. If employees are wasting office supplies or delivery drivers are taking
    the scenic route, address the issue. Be sure to assess the revenue being brought in
    by your online advertising strategy and make adjustments if it isn’t providing value.
  2. Stock up on necessary supplies. If there are items you know you’ll use in the
    year ahead, buy as much as you can now. You may get bulk discounts, and you can
    minimize the impact of future price increases. Stocking up on supplies will allow you
    to avoid passing on increased costs to your customers in case prices continue to
    grow.
  3. Have multiple suppliers. Having one supplier for every item your company needs
    makes sourcing simple and helps develop strong relationships with vendors.
    However, if you have numerous suppliers, you’ll have options if one can’t get you
    what you need or their prices increase.
  4. Evaluate your products and services. Identify what products and services are the
    most profitable. Remember that consumers might be open to lower-priced options to
    maintain their own budget. They also may be interested in paying more for items
    and services that make a stressful time more manageable. Consider temporarily
    cutting services or expenses to better focus on what generates the best results.
  5. Raise prices wisely. If you must raise your prices to compensate for inflation, do
    so wisely. Don’t increase your prices so much that it causes many of your customers
    to purchase from your competitors. Instead, raise your prices just enough to offset
    the impact of inflation and ensure that you can keep your small business profitable.
    Also, don’t be sneaky about pricing by resorting to drip pricing or hidden fees.
    Instead, be transparent. Let customers know about the increase and help them
    understand why.
  6. Prioritize customer service. When consumers know you care about their
    satisfaction, they’re more likely to do business with you, even if you must raise
    prices. Don’t skimp on service by being understaffed. If you don’t have the budget
    for a full-time employee, look into freelancers and part-time staff.
  7. Use technology. Artificial intelligence, automation and self-serve customer options
    can reduce costs and take pressure off existing staff in an already tight labor market.
    Take the time to research technology that you could implement in your business to
    help reduce costs and maximize efficiency.

3 Things To Think About Before You Sell

It’s exciting to put your house on the market. It can also be nerve-wracking. How do you make sense of all the options and decisions? There are a few things to bear in mind:

Is it Time and Money Well Spent?

Be aware that you may not be able to recoup all of your remodeling costs when you sell your home with a remodeled 1970’s style bathroom for exampe. Some remodeling decisions, such as using out-of-style materials, make it more difficult to sell a home. Other improvements may be required to attract any reasonable offers. Additional considerations include the condition of surrounding homes for sale, the home’s price range, and whether current market conditions favor buyers or sellers.

What Benefits Every Household

It pays to keep your home clean, uncluttered, appealing, and free of small annoyances, regardless of its size, age, price, or location. A fresh coat of paint and a few potted plants go a long way toward making a good first impression. Sticking doors, an overgrown yard, or dripping faucets, on the other hand, can turn buyers off before they ever give your property a chance.

Don’t Mistake the Importance of This

Your asking price is perhaps the most crucial issue. A figure that is too high may discourage offers and leave the property unsold, while a number that is too low may create a bidding battle that drives offers higher than you ever imagined. Elements outside your control may also dictate price, such as market conditions and time constraints to sell.

Your REALTOR® is the trusted professional who can guide you through the entire process of selling your home.

Padre Island Housing Data – Dec 2021

WHAT DO SUPPLY AND DEMAND TELL US ABOUT TODAY’S HOUSING MARKET?

There’s a well-known economic theory – the law of supply and demand. Elevated demand persisted as homes averaged roughly one month on the market and after multiple offers coming in. When demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is VERY HIGH and supply is VERY LOW, prices can rise significantly.

If you’re waiting to enter the market because you’re expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate this coming year, prices are still projected to rise. That means the property of your dreams will likely cost even more in 2022.
The bottom line is, high demand and very low supply on Padre Island are what’s driving property prices in today’s real estate market. And while prices may increase at a slower pace in the coming months, experts still expect them to rise.

If you’re a potential real estate buyer, connect with your trusted REALTOR today to discuss what that could mean for you if you wait even longer. It’s a seller’s market and they feel if you don’t buy their property, the next one will.

Cheri Sperling is the owner of Coastline Properties with a dedicated team of agents specializing in residential listings, sales, and property management in the Padre Island real estate market. Coastline’s team is the most knowledgeable real estate office on Padre Island. No pressure style, patience, and an intimate understanding of the local market. They go to work for you!

Padre Island December 2021 Data (Click Pic below for Larger Image)

padre-island-housing-report-dec-2021

HOW TO APPROACH FALL SALE’S SEASON!

It’s hot here on the Island…is an 80-degree day too much to ask for? Although it is nearing the end of what most may consider real estate’s “busy” season, that doesn’t mean buyers are going anywhere, and it doesn’t mean owners will stop listing their homes. The show must go ON! As the market is still quite active, it’s critical to take a look at your spending, whether you are the buyer OR the seller. Here are some smart tips on how to save and spend this season to continue to get the most out of the current market.

BUYERS:

DO NOT overpay. Unless you find yourself in a bidding war for the home of your absolute dreams, there is not a single home like it, and you do not plan to leave…ever. Note: Do not fall victim to the county appraisal district’s “appraised value” on the property. They have not visited the property, know the amenities, comparables, etc. If you want a far more accurate value, hire a reputable appraiser who actually visits the home and runs their own detailed determination of real value.

DO get an inspection. It’s worth the couple hundred dollars. Do your due diligence and know what you’re buying. If there is a deficiency on a large ticket item, it’s best to find out ahead of time so you can budget for it in the future or you can ask the seller to help right the wrong. You do not want to find these deficiencies later, once the sale is over, and you haven’t budgeted for them.

DO NOT make a lowball offer. Negotiating is normal, and it’s okay to not offer full price. But if you’re interested enough to make an offer, make sure it’s worth your time and the seller’s time. Your agent will be able to give their best advice as to what a good offer price would be, based on comparables and their knowledge of the market and area.

DO lender shop if you are not paying cash. Different lenders can offer different rates. Shop around, see with whom you can save and where.

DO NOT make large purchases prior to closing if you’re obtaining a loan. This is a huge expensive mistake, as it can alter your credit score and can actually take you from having loan approval to not. You can lose your property and in turn gain something of expense (whatever it was that you bought, albeit a car, boat, etc.).

SELLERS:

DO NOT remodel what won’t pay off. If you’re going to do some upgrading prior to listing your property, spend money in the kitchen. This is a room that’s important. Otherwise, less expensive updates you can do include painting, new hardware, fixtures and carpet. Gutting bathrooms and shellacking your garage floor is likely not worth the pay off.

DO price properly. Your listing agent will be able to guide you to a proper sales price, so use their knowledge! You’re paying them, after all. If your property is priced too high, it’s likely to not sell as quickly, wasting your money on months of bills, taxes, mortgage payments, etc., and likely not attracting the desired buyers who would be making offers.

DO NOT reject reasonable offers. Letting your emotions get in the way of your sale can be tough, but you do not want to push qualified buyers away because you’re not remembering that this is in fact business. At the very least, provide a counter offer.

DO disclose. If there are issues that you do know about, it’s the law to disclose known deficiencies. If you do not, this could turn in to a lawsuit. Now THAT is expensive!

Try to keep these Dos and Don’ts in mind while the summer comes to a close and the fruitful fall approaches, and you will be free from the most pricey mistakes that buyers and sellers tend to make. You work hard for your money, so keep your dollars where they will work for YOU!

 

WE LOVE MAILBOX MONEY

Anyone else sit at home and blast Jimmy Buffet radio through the surround sound? Mailbox Money is one of my personal favorites. He’s got the right idea: Invest in a piece of paradise, rent it, make (more than) a few bucks! With the housing market being as strong as it is right now, most buyers are losing out on the rat race – they WANT to be here, but (1) cannot afford to buy in this high seller’s market; (2) are attempting to purchase but continue to not be “the chosen one” in the multiple offer scenarios presenting with most properties for sale; (3) are unsure as to how long they’ll be able to spend away from their homestead; or (4) just want to get a feel for the Island before purchasing themselves.

These folks want to RENT! They want to give YOU their MONEY!

Spring and Summer are often pique times to consider selling and buying, especially now with the population AND popularity of the Coastal Bend rapidly increasing. Demand is HIGH and for good reason. Travel is becoming increasingly more accessible, and many are still working remotely and want to do so from our Island. Two really huge reasons to jump in and both buy and sell while the flocks are flocking.

So WHAT makes real estate such a powerful investment, not only now in the current market, but long-term?

WHAT:

If checking that mailbox for a monthly check is what has your face morphing into the heart eye emoji, then you’re asking yourself, “what are the elements of value to an investor?” Well, that depends on commitment: Do you intend on having a long-term or short-term investment? You also need to do your due diligence on rental rules – single-family homes must have a 30+ day minimum; however, most condos will allow vacation rentals. Ask your agent for the specifics on each property you have your eye on to ensure it aligns with your goals.

Property values and their projected appreciation may play a large role in your (a buyer’s) intentions. This past year is a prime example of how quickly appreciation can happen – and may likely continue on that upward trajectory. Tax depreciation, capital gains, and inflation hedge may also play a role in values. As important as these matters are, they may be a little snooze-worthy. So let’s make it quick.

Let’s take a look at each of these potential advantages:

Projected Appreciation: This is a percentage that estimates what your property will be worth in the future. Of course, nothing is ever promised, but the numbers could aid in the decision process.

Tax Depreciation: COULD help you maximize your tax savings. This is the depreciation that can be listed as an expense on a tax return, the gradual charging to expense of a fixed asset’s cost over its useful life.

Capital Gains: Another key tax advantage of owning an investment property. Capital gains on investment real estate is the difference between the sales price and the cost of purchase and improvements. They’re taxed at either a short-term rate or a long-term or reduced rate.

Inflation Hedge: This has to do with the rent that’s charged to the tenant. Some leases have provisions for rent increases to be indexed to inflation. In other cases, rental rates are increased whenever a lease term expires and the tenant is renewed. Either way, real estate income tends to increase faster in inflationary environments, allowing an investor to maintain its real returns.

Selling: When rental properties are sold, the proceeds can be rolled into other rental properties without paying capital gains taxes. This is called a 1031-Tax Exchange.

Now, most of you are probably thinking “This sounds great, but I can’t afford that…” Fortunately for many of us, you don’t have to be a part of the ultra-rich to own an investment property! After all is said and sold, as long as your rental income exceeds your monthly expenses, you WIN!

Here are some helpful tips that may guide you in the right direction:

  1. Work with an agent who is knowledgeable about the area. Here in our Coastal Bend, most agents are accustomed to working with investors/second home buyers.
  2. Know what the seller’s main goals are. That alone will give you a leg up on any offer you send their way. If they’re money-driven, offer over the asking price. If they need a long close and a lease-back, offer that. Extra Earnest Money? You get the idea.
  3. Spend time doing your research and asking your agent the property questions. Which is the right neighborhood for your needs, the costs of maintenance, HOA dues, taxes, insurance, etc.
  4. Have money. This may seem obvious but daunting, so let me explain that it doesn’t mean millions in the bank. Paying cash may give you a leg up, but many buyers will need a loan – your lender’s underwriter needs to see that you have adequate reserves (as often your down payment will be larger for a second property).
  5. Consider your debt-to-income ratio. It cannot be too high.

If you are at all capable, dive in. The options and advantages can far outweigh the fear of dabbling in real estate investing. If you live here, you know the magic of the Island – now is the time to capitalize on the growing rental market. Let not “checking the mail” be a chore – Cash in!

North Padre Island Housing Report – August 2018

If you are looking to Purchase or List a home on Padre Island…Ask for the ONLY Padre Island EXPERTS!

* The Median Priced home is down to $254,050 – down 16.4% compared to August 2017.
* The Active – Homes For Sale is down to 329 – down 7.6%.
Days on the Market: 110
Days to Close: 30
TOTAL 140 Days on the Market in 2018
16 days less than August 2017

Our Coastline team lists and sells throughout the Texas Coastal Bend – but we Specialize and are considered the area Experts on Padre Island. When you think about Real Estate on Padre Island, everyone thinks about Coastline Properties. Come Coast Awhile….with us!!

north-padre-housing-report-oct-2017

Oil prices drop, Corpus Christi’s rent prices don’t

corpus-christi-rentalsCORPUS CHRISTI – Plunging oil prices may be a relief for Coastal Bend residents at the pumps, but they’re having little influence on rents or mortgage payments.

Experts predict the falling price of crude will force housing costs in energy-dependent Corpus Christi to drop at some point.

That day won’t come in 2015, they say.

The housing market in Corpus Christi is perhaps the tightest it has ever been for both potential renters and those looking to buy a home. Things won’t change for the rest of the year, despite a rush on home and apartment construction, said Jim Lee, the chief economist at Texas A&M University-Corpus Christi.

Oil field workers who lived in apartments in Corpus Christi are moving to Alice, Cotulla and other small towns within the energy play to be closer to work, said Melissa Gomez, a broker for AAA Apartment Locating in Corpus Christi. Others have been moving out of higher-end luxury apartments and into older, more-affordable complexes to cut costs.

The exodus has created hundreds of apartment vacancies since November, but rent prices remain unchanged. Instead of lowering rents, property managers have eased move-in criteria to insure occupancy. Applicants with credit and rental-history blemishes and those whose income is less than three times the cost of rent are no longer being disqualified for apartments.

“We’ll see a decline in occupancy rates here and there … but they (complexes) won’t empty out,” Gomez said.

The average price of homes in Corpus Christi hit a record high of $207,700 in December, according to the latest data from the Real Estate Center at Texas A&M University. That same month, the asking rent for a typical apartment in the city was 25 percent higher than it was just four years ago.

Five recently completed apartment complexes have been cleared since March to take in tenants. Another dozen are in various stages of construction and are due to open in coming months.

The Corpus Christi area’s apartment occupancy rate was 92.5 percent in December, according to ALN Apartment Data, a Carrollton-based firm that tracks rental property trends. That’s down from 94.3 percent in November and the record months of December and April, when occupancy hit 95.2 percent.

Average rent in Corpus Christi in December was between $842 and $880, an ALN report said, though it’s not uncommon for newer complexes to ask for more than $1,100 for a one-bedroom home.

Corpus Christi’s low unemployment has been a magnet for thousands of job seekers in the past three years, most of them eyeing work in the Eagle Ford Shale energy play. The trend has slowed recently as energy companies have scaled back shale production, even shaved jobs, trying to remain profitable.

Falling oil prices and cutbacks in shale oil production by energy companies will put “downward pressure” on the local housing market, Lee said. However, the majority of newly constructed apartments are likely to be absorbed by students at Texas A&M University-Corpus Christi and personnel from the nearby Naval air station.

“The overall housing market in Corpus Christi, including single-family rental houses, will likely soften up after reaching its current peak, but the market for apartments might continue to be tight at least the rest of the year,” Lee said.

Apartment occupancy in Corpus Christi in January 2010 was 89 percent, and average rent was about $700.

Warren Andrich, CEO of the Corpus Christi Association of Realtors, was optimistic about the home sales market, while conceding more rental property was needed in the city.

The Real Estate Center reported that 375 homes were sold in Corpus Christi in December, typically a slow sales month.

The Coastal Bend’s economy, though heavily influenced by the energy industry, is diverse enough to support an increase in housing, Andrich said.

Although homes values are increasing and are being sold at or near their asking prices, Corpus Christi’s inventory of affordable homes — those priced between $125,000-$165,000 — is less than 300 units.

“These are all indicators that we were in need of the additional rentals coming on the market,” Andrich said.

Twitter: @Caller_ChrisRam

Corpus Christi Apartment Market (December 2014)

Occupancy Rate: 92.5 percent

Asking Rent: $880

Effective Rent: $873

Average Apt. Size: 850 square feet

Average Market Rent Breakdown By Floor Plan

Efficiency, $671

1 Bedroom, $753

2 Bedroom, $944

3 Bedroom, $1,084

4 Bedrooms +, $2,181

Source: ALN Apartment Data

Housing Activity (Annual figures)

Year No. of sales Average price Median Price Months of inventory

2004 4,745 $132,100 $113,800 4.6

2005 4,894 $147,300 $125,200 5.0

2006 5,192 $153,300 $130,400 6.2

2007 4,510 $162,000 $136,500 7.4

2008 3,773 $162,200 $138,900 9.0

2009 3,444 $155,500 $134,800 10.2

2010 3,445 $152,300 $136,500 10.3

2011 3,396 $157,500 $135,700 9.5

2012 4,058 $169,900 $142,300 7.1

2013 4,589 $180,700 $152,200 5.3

2014 4,721 $197,100 $168,600 4.5

Source: Real Estate Center, Texas A&M University.

via @callertimes