The Real Estate Report for South Padre Island

South Padre Island, Texas, is well known for its beautiful beaches and mild sub-tropical climates. It is a popular vacation destination and great place to escape the cold of winter. Despite the reputation as a spring break Mecca, the local economy is dependant on families and couples for most of the year. Waterfront properties, especially condominiums, both on the beach and on Laguna Madre Bay, are most in demand, with beachfront homes typically priced in the $2 million. Beachfront condos generally range from $300,000 to $600,000.

Acoording to Lawrence Yun, NAR chief economist, "Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas," he said. "As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available."

Existing-home sales are projected to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter. For all of 2008, existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year.

The 30-year fixed-rate mortgage is likely to rise gradually to 6.2 percent by the end of the year, and then average 6.3 percent in 2009. NAR's housing affordability index is expected to rise 10 percentage points to 127.0 for all of 2008.

Foreclosures spike 112% nationally in April 2008 and has slowed down the real estate market recovery, however South Padre Island is starting to see more activity this spring then last year. Many people feel that we have reached the bottom of the market and are actively searching for good deals on condos and beach houses.