Why is real estate so important to the banking industry? During the “Texas Bankers Association’s Annual Strategic Opportunities Conference” in November 2016, the hot North Texas single family housing market was a key topic. How can the CEO and President of NexBank explain the synergy of land and capital?
“Hot Housing Market in Texas”
With more than 5 million residents in 2000, the Dallas Fort Worth area added about 20% more people between 2000 and 2010. This placed a great deal of stress on the #4 metropolitan area in the United States. There were only two months’ supply of single family homes in North Texas, while six months’ is the norm.
In June 2016, the hot 2016 Dallas housing market had sales of 10,857 single family homes. Real estate agent Wanda Charles warned people, “What I explain to my clients is that it is fun to sell and it is not fun to buy.”
“Two Inputs for Production”
One of the many roles of banking is to “assist with economic production.” The Federal Reserve System keeps close track of the American banking system to ensure that certain targets are reached for inflation and growth rates. NexBank CEO and President spoke at the “Texas Bankers Association’s Annual Strategic Opportunities Conference,” laying out the focus for 2017.
Capital and land are two inputs for productivity. That is why the North Texas real estate market matters so much to NexBank. This growing firm offers financial products to help both individuals and companies get the land they need to be successful. When the Texas real estate market is hot, the bankers are happy.
The high demand for single family homes and the low supply have been the perfect storm for North Texas. Now, NexBank is hoping to continue the success into 2017 and beyond.