Those transferring to Midland before the first of the year
likely won’t find the quiet housing market that typically exists
during the holiday season.

With just more than 300 homes for sale and only seven listed for
rent last week in the Multiple Listing Service database, those in
the real estate industry say the best homes and rental properties
are moving fast.

“The good houses go quick,” said Deborah Pierce, who will this
month completes her service as president of the Permian Basin Board
of Realtors. “The rental situation is pretty tough.”

Pierce said typically Thanksgiving and Christmas bring a bit of
a slowdown to the housing market but that this year they’re still
seeing serious home seekers looking for a place to land.

“Midland’s just not like the rest of the state,” she said.

Last week, there were 309 homes on the market, according to data
from the Permian Basin Board of Realtors. That’s down slightly from
October when 324 homes were listed, but according to those in the
industry is consistent with what’s been a trend over the last
several months: Inventory is low.

In October of 2010, 508 homes were listed for sale.

Carroll Nall, member services director at the Permian Basin
Board of Realtors, said numbers are in line with 2007 when oil
prices were at more than $100 and, as is occurring now, rental
properties were at nearly full occupancy.

“We don’t like having this few houses but our growth has been
steady,” Nall said.

Jim Gaines, a research economist at the Real Estate Center at
Texas AM University, said limited rental options and a booming
housing market are characteristic of most oil and gas-based towns
throughout the state.

Generally November and December are slower months. But, he said,
in areas where the inventory is low and people still are
transferring in for work, it can be an active time.

“The oil and gas industry has been going hot and heavy,” he
said.

Because many of those moving to Midland assume they won’t be in
the Permian Basin for more than a few years, Gaines said renting
often is the preferred method of housing.

When homes are limited and apartments at more than 95 percent
occupancy, though, those who can qualify may turn to
purchasing.

“A lot of the people who are coming in may know they’re not
going to be there forever,” he said.

Pierce said young couples moving to Midland also are looking to
rent because the terms for qualifying for a mortgage have tightened
and they may not be in the position to buy just yet.

“It’s a little harder to get a loan,” she said.

With more individuals renting and buying, prices have continued
to climb, as well.

In October, the most recent data available, the average sale
price for a home was at $211,483, according to the Permian Basin
Board of Realtors. That number has dropped from September when the
average sale price hit $218,314. However, it still represents a
nearly 9 percent increase when compared with sale prices in October
of last year.

Rental rates, too, are up.

Several complexes require potential leasees to reserve a spot
more than a month in advance if they want to move in and others are
simply telling renters to call back later as they have no
availability.

Rent for one bedrooms in some of the older complexes can range
from $700 to $900 per month while the rate at newer apartments is
well over $1,000, according to apartment complex staff. In some
complexes, the market rate has increased by more than 25 percent
from last year.

Gaines said Midland, Victoria and other oil and gas towns likely
will see this trend continue as long as oil prices don’t take a
drastic dip.

“They’re relatively small markets that don’t have an
overabundance of products,” he said. “It’s been a very active time
period.”

Kathleen Thurber can be reached at kthurber@mrt.com.

Housing stats:

September 2011:

383 properties on market

154 sold

$218,314 average sale price

September 2010:

548 properties on market

115 sold

$211,264 average sale price

October 2011:

324 properties on market

124 sold

$211,483 average sale price

October 2010:

508 properties on market

107 sold

$194,378 average sale price

Source: Permian Basin Board of Realtors