Texas is known for being stubbornly different. Rightfully so. As it turns out, this reputation holds true for real estate, too.

For some time now, headlines have spelled doom and gloom for real estate and the economy. The housing bubble. The subprime mess. We’ve all had a steady dose of extreme examples from the left and right coasts. Meanwhile, though, Texas has been quietly chugging along, in many cases running counter to national trends and even defying conventional logic.

Just take a look at central Texas. May 2008 statistics show that while existing-home sales fell from the same month last year, median home prices were actually up 2% from 2007.

In fact, 2006 and 2007 were the two strongest years for central Texas home sales – even while much of the rest of the country was experiencing big declines. And active listings are up 20% from a year ago.

The same story continues in other Texas metro areas. For example, at the end of May, overall housing prices in the Dallas area rose by 3.76% in the first quarter – not bad compared to a 3.1% nationwide decline. That’s nearly a 7-point swing.

And in Houston, it’s a modern boom town. While sales of single-family homes across the area fell in April, the average price of those homes increased for a third straight month to the highest level ever for the month of April and thus far in 2008. Perhaps more stunning is that the average price surpassed those from April 2007, the second best year on record.

Making the American Dream a reality here
That’s a lot of good news to celebrate as we recognize National Homeownership Month in June – whether you’re currently a homeowner, or you’re thinking about buying a home this summer. There’s no doubt that homeownership offers significant advantages for consumers, including the ability to deduct mortgage interest and local and state property taxes from your federal income taxes.

Even so, we have lots of room for improvement. Though we’ve made great strides over the years, the Texas homeownership rate is only 66%, while the national average is nearly 69%, according to 2006 U.S. Census data. That puts us at a disappointing 42nd out of 50 states in homeownership. Texas pride demands that we do better.

Keeping homeownership affordable
While many Texans were able to purchase a home during the height of the housing boom because of relaxed loan qualifying standards, the ability to stay in that home is becoming more and more of a challenge.

Financial experts advise that no more than 30% of a family’s gross income should go toward shelter. Those costs include mortgage, taxes and insurance, and utilities. Any more than 35%, and the balance shifts from homeowners who are “house rich” with money left over for bills and recreation to “house poor” where they’re struggling every month to make ends meet.

Unfortunately, that scenario became a reality for many. Consider that, nationally, the median household income grew by about 60% from 1990 to 2006 – just about on par with the rate of inflation. But at the same time, the median home value more than doubled in many large cities.

While Texas didn’t experience quite the extremes of such dizzying highs and lows (that’s why places like California have experienced a housing bubble), we’re not immune to pressures on homeowners. Rising prices for everything from gas to groceries and high property taxes are making things tougher on Texas families. Texas REALTORS® are committed long-term to advancing public policies that make homeownership more affordable and to providing education and information so consumers make smart choices when it comes to housing.

Luckily, consumer confidence remains very much alive and well among Texans. With low interest rates, stable employment and income, and finding the right Texas REALTOR® to help you through the process, the summer of 2008 is a great time to buy a home in the Lone Star State. Here in Texas, we’re still different and we’re still better.