Buying an El Paso HomeThe market for El Paso homes has remained fairly steady despite the credit crunch and the subsequent downturn in the residential markets of many other parts of the country. From 2004 to 2005, the median price of an El Paso home increased 25 percent. Average 2006 home valuations from the local appraisal district went up roughly 20 percent from the previous year. And although home sales were down in El Paso during 2007, the average El Paso house still increased in value by about 4 percent. The forces acting on the El Paso home market seem to indicate that this trend will continue for a few more years to come... ...The influx of troopsThe Defense Department's Base Realignment and Closure process will expand operations at Fort Bliss as the U.S. Army switches gears to emphasize training in desert operations. By some estimates, the next few years will bring as many as 46,000 new soldiers to El Paso. Home prices--especially in the Northeast and Central parts of town--have already begun to reflect the expected 5 percent increase in population....The "sleeper" marketThe El Paso real estate market, like many in the Southwest, has long been ignored in favor of more lucrative sections of the country. This sleeper market with its low cost of living has an average home value of $129,900....Enter the savvy investorThe recent bull market in housing left prices rather high in many parts of the country. This lead many to seek out the bargains available in the El Paso area. In previous years, this investor demand has been great for long time home owners wishing to sell or upgrade. The flip side is that locals interested in buying their first homes have found it hard to compete with the out of town investor.What does this all mean?Once you factor in falling interest rates and housing demand that exceeds new construction by an estimated 2500 homes per year, the 4 to 6 year outlook for El Paso real estate is good. The danger, of course, is that the real estate market might drop a bit in 2009. But El Paso has very low exposure to the sub-prime loans, and foreclosure is much less common here than in other parts of the country.
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