Odessa Market Report 2009

Page 1


2009 Texas Metro Market Overview

Odessa

Table of Contents Introduction.............................................................................................. 1 MSA Map................................................................................................. 2 Demographics......................................................................................... 3 Education................................................................................................ 8 Employment............................................................................................ 9 Economy............................................................................................... 16 Infrastructure......................................................................................... 17 Multifamily.............................................................................................. 19 Housing................................................................................................. 20 Hotel...................................................................................................... 26 Real Estate Center................................................................................ 27

Market reports are updated annually. The Real Estate Center also publishes market news, which is updated continuously throughout the year. It allows market analysts to access the most current information available. For more current information about this Metropolitan Statistical Area (MSA) or any of the other Texas MSAs, please go to http://recenter.tamu.edu/ mnews/. Note: In 2003, the U.S. Census Bureau revised its definition of counties included in some Texas Metropolitan Statistical Areas (MSAs). As a result, most information presented in this report reflects Texas’ 2003 MSA definition. However, some of the data reported to the Center continue to use the Bureau’s 1999 definition. Data using the1999 MSA definition are stated where applicable.

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2009 Texas Metro Market Overview Introduction

Odessa is at the industrial and commer-

Odessa

cial crossroads of West Texas. Neighbor to Midland, this city was named the fourth top city in America for doing business by Inc.com and newgeography.com in their 2008 survey of the “Best Cities for Doing Business.” The city is about halfway between Dallas– Fort Worth and El Paso and is the Ector County seat.

Quick Facts MSA Land Area (2003 definition)

901.68 square miles

2008 Population Density

146.3 people per square mile

Counties

Ector Area Cities and Towns

Gardendale, Goldsmith, Greenwood, Odessa, Notrees, Penwell, Pleasant Farms *This report's MSA data reflects either 1999 or 2003 MSA definitions based on data availability. Use of 1999 definition is noted where applicable.

The metropolitan area is within the Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University 100-mile–radius Permian Basin. The region is in the heart of the largest single source of oil and gas deposits in the United States. The local economy is heavily dependent on the oil and The La Entrada al Pacífico trade corridor is a route from the gas industry. Pacific Ocean port of Topolobampo in the Mexican state of Sinaloa to Texas and beyond by way of the Midland-OdesThe University of Texas of the Permian Basin (UTPB) sa area. Designated as “Trade Corridor 56” by the Interis home to Odessa’s Presidential Museum and Leadmodal Surface Transportation Efficiency Act, the corridor is ership Library. It is the only facility of its kind in the a joint project between Mexico and the United States. United States dedicated to the office of the Presidency, Sources: Odessa Convention & Visitors Bureau, Odessa Development not just a single president. Corporation and Midland Economic Development Corporation Odessa College boasts notable alumni including Ty Murray, seven-time all around world pro rodeo champion.

Microsoft product screen shot reprinted with permission from Microsoft Corp.

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2009 Texas Metro Market Overview

MSA Map

Odessa

Metropolitan Statistical Areas (MSAs) DALLAM

SHERMAN

HANSFORD

OCHILTREE

LIPSCOMB

HARTLEY

MOORE

HUTCHINSON

ROBERTS

HEMPHILL

GRAY

WHEELER

2

POTTER

CARSON

RANDALL

ARMSTRONG

OLDHAM

DONLEY

DEAF SMITH

PARMER

CASTRO

SWISHER

BAILEY

LAMB

HALE

BRISCOE

COLLINGSWORTH

HALL

CHILDRESS HARDEMAN

COCHRAN

LUBBOCK

TERRY

LYNN

COTTLE

MOTLEY

DICKENS

CROSBY

GARZA

KENT

STONEWALL

GAINES

ANDREWS

9

EL PASO

LOVING

WINKLER

DAWSON

HOWARD

MARTIN

17 16 ECTOR

SCURRY

BORDEN

MITCHELL

CULBERSON

WARD

CRANE

STERLING

MIDLAND

UPTON

NOLAN

REAGAN IRION

REEVES

COKE

RUNNELS

TARRANT

JOHNSON

18

COLEMAN

COLLIN

TOM GREEN

SAN SABA

DALLAS

KERR

EDWARDS

HAYS

REAL

BREWSTER

KENDALL BANDERA

KINNEY

UVALDE

MEDINA

ZAVALA

DIMMIT

19

Prepared by the Labor Market and Career Information Department, TWC Edited by Real Estate Center at Texas A&M University

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6

MADISON

GRIMES WASHINGTON AUSTIN

WALLER

FAYETTE

GOLIAD

BEE

REFUGIO ARANSAS

7

JIM WELLS

NUECES KLEBERG

JIM HOGG

STARR

10

BROOKS

15

HIDALGO

KENEDY

WILLACY

5

CAMERON

LIBERTY

CALHOUN

MATAGORDA

4

BRAZORIA

ORANGE

JEFFERSON

CHAMBERS

FORT BEND

JACKSON

VICTORIA

JASPER NEWTON

HARDIN MONTGOMERY

HARRIS

23

TYLER

SAN JACINTO

GALVESTON

SAN PATRICIO

DUVAL

POLK

WALKER

BURLESON

DE WITT

MCMULLEN

SABINE ANGELINA

BRAZOS

BASTROP

SAN AUGUSTINE

TRINITY

WHARTON

WEBB

ZAPATA

HOUSTON

LEON

LEE

LIVE OAK

14. Lubbock 15. McAllen-Edinburg-Mission 16. Midland 17. Odessa 18. San Angelo 19. San Antonio 20. Sherman-Denison 21. Texarkana 22. Tyler 23. Victoria 24. Waco 25. Wichita Falls

NACOGDOCHES

LAVACA

ATASCOSA

12

SHELBY

FREESTONE

ROBERTSON

KARNES

PANOLA

CHEROKEE

GONZALES

WILSON

HARRISON

RUSK

COLORADO GUADALUPE

GREGG

LIMESTONE

BELL

CALDWELL

FRIO

LA SALLE

3

MARION

22 13

ANDERSON

COMAL

BEXAR

MAVERICK

TRAVIS

BLANCO

UPSHUR

SMITH

VAN ZANDT

NAVARRO

WILLIAMSON

KIMBLE

WOOD

KAUFMAN

MILAM

LLANO

CASS

CAMP

RAINS

FALLS

BURNET MASON

GILLESPIE

VAL VERDE

11

LAMPASAS

MENARD

CROCKETT

HUNT

ELLIS

MCLENNAN

CORYELL

CONCHO

BOWIE

FRANKLIN TITUS HOPKINS MORRIS

ROCKWALL

24

BROWN

21

RED RIVER

DELTA

HENDERSON

BOSQUE HAMILTON

SUTTON

1. Abilene 2. Amarillo 3. Austin–Round Rock 4. Beaumont–Port Arthur 5. Brownsville-Harlingen 6. College Station–Bryan 7. Corpus Christi 8. Dallas–Fort Worth–Arlington 9. El Paso 10. Houston–Sugar Land–Baytown 11. Killeen–Temple–Fort Hood 12. Laredo 13. Longview

8

LAMAR

FANNIN

SOMERVELL

COMANCHE

TERRELL

PRESIDIO

ERATH

MILLS

SCHLEICHER PECOS

DENTON

PALO PINTO

EASTLAND

TAYLOR

MCCULLOCH

JEFF DAVIS

WISE

HOOD

CALLAHAN

COOKE

HILL

GLASSCOCK HUDSPETH

1

FISHER

MONTAGUE

PARKER

SHACKLEFORD STEPHENS

20

GRAYSON

CLAY

JACK

THROCKMORTON YOUNG

HASKELL

JONES

25

ARCHER

BAYLOR

KNOX

KING

WICHITA

WILBARGER

FOARD

14

HOCKLEY

YOAKUM

FLOYD


2009 Texas Metro Market Overview

Odessa

Demographics Area Cities With 10,000 or More Residents

Odessa MSA Population* Percent Change

City

1990 Population

2000 Population

Growth 1990–2000 (in percent)

89,699

90,943

1.4

Year

Population

1997

121,749

-

1998

123,544

1.5

1999

122,450

-0.9

2000

121,123

-1.1

2001

120,866

-0.2

2002

122,361

1.2

2003

122,948

0.5

2004

124,293

1.1

2005

125,339

0.8

2006

127,462

1.7

2007

129,570

1.7

Average household size (2000)

2.72

2.74

2008

131,941

1.8

Population younger than 18 (2000, in percent)

30.4

28.2

*July 1 population estimates

Population 65 and older (2000, in percent)

10.9

9.9

Source: U.S. Census Bureau

Source: U.S. Census Bureau (1999 definition)

Odessa

Source: U.S. Census Bureau

Household Composition Ector County

Distribution by Race and Hispanic or Latino Origin, 2000 (in percent) Ector County

Texas

White

73.7

71.0

Black

4.6

11.5

Asian

0.6

2.7

American Indian

0.8

0.6

17.4

11.7

2.8

2.5

42.4

32.0

Other Two or more races* Hispanic (of any race)

Source: U.S. Census Bureau (1999 definition)

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Texas


2009 Texas Metro Market Overview

Odessa

Texas Metropolitan Area Population Growth Forecast, 2000–2020 Texarkana Wichita Falls Beaumont–Port Arthur Abilene San Angelo Sherman-Denison Longview Lubbock Midland Tyler Waco Odessa Victoria College Station–Bryan Amarillo San Antonio Corpus Christi Texas Killeen–Temple–Fort Hood Houston–Sugar Land–Baytown El Paso Dallas–Fort Worth–Arlington Brownsville-Harlingen Austin–Round Rock McAllen-Edinburg-Mission Laredo 0%

10%

20%

30%

40%

50%

60%

Source: Texas State Data Center – Scenario 0.5 (2006 projection)

Odessa MSA Projected Population Year

Texas State Data Center (Scenario 0.5)

Texas Water Development Board

2000

121,123

121,123

2005

126,619

-

2010

132,773

132,759

2015

138,705

-

2020

143,904

144,073

2025

148,864

-

2030

153,887

154,160

2035

158,779

-

2040

163,099

163,141

Sources: Texas State Data Center (2006 projection) and Texas Water Development Board (2006 projection)

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70%

80%

90%


2009 Texas Metro Market Overview

Odessa

Interstate and Cross-Border

2008 Migration Patterns – traffic flow by state/province Based on 84,447 Interstate Household Goods Moves from January 1, 2008 through December 31, 2008

Texas Migration Patterns 2008 Data are based on Atlas Van Lines Interstate and Cross-Border Household Goods Moves per calendar year. Atlas analyzes data in January on the origins and destinations of the company’s interstate moves during the prior 12 months.

KOTA

OREGON

ound

Outbound

207 193 169 166 188 201 148 176 177 131

253 143 120 133 142 106 166 214 219 169

Year

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

SOUTH CAROLINA

Inbound

Outbound

987 1,026 1,239 1,421 1,298 1,118 1,198 1,504 1,768 1,418

682 818 721 799 994 967 937 1,227 1,440 1,279

Year

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

TEXAS

Inbound

Outbound

1,825 2,023 2,087 2,092 1,909 1,637 1,414 1,438 1,423 1,469

1,538 1,757 1,710 1,856 1,780 1,526 1,385 1,630 1,605 1,419

Year

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

Inbound

Outbound

8,629 8,831 9,714 9,525 8,644 8,075 7,723 9,030 10,063 8,718

6,442 6,665 6,812 7,210 7,442 6,920 6,778 7,584 8,659 7,945

Source: Atlas Van Lines Jan. 2009 http://www.atlasworldgroup.com/migration

PENNSYLVANIA

ound

Outbound

,131 2,345 2,677

3,339 3,841 3,755

Year

2008 2007 2006

SOUTH DAKOTA

Inbound

Outbound

2,328 2,652 2,890

2,800 2,866 3,103

Year

2008 2007 2006

Inbound

220 185 ~5~ 205

UTAH Outbound

238 214 244

Year

2008 2007 2006

Inbound

Outbound

512 596 733

552 630 658


2009 Texas Metro Market Overview

Odessa

Texas Metropolitan Area Population* Change 2008

Percent Change

1,155,579

1,652,602

43.0

McAllen-Edinburg-Mission

537,929

726,604

35.1

Laredo

182,994

236,941

29.5

Dallas–Fort Worth–Arlington

4,917,993

6,300,006

28.1

Houston–Sugar Land–Baytown

4,534,979

5,728,143

26.3

San Antonio

1,659,847

2,031,445

22.4

324,556

392,736

21.0

20,157,531

23,843,432

18.3

Tyler

171,033

201,277

17.7

Killeen–Temple–Fort Hood

325,335

378,935

16.5

College Station–Bryan

179,498

207,425

15.6

Sherman-Denison

107,020

118,804

11.0

El Paso

671,250

742,062

10.5

Amarillo

221,447

243,838

10.1

Waco

209,800

230,213

9.7

Lubbock

246,865

270,610

9.6

Midland

118,321

129,494

9.4

Odessa

123,544

131,941

6.8

Longview

193,114

204,746

6.0

Texarkana

128,718

135,509

5.3

San Angelo

105,787

109,563

3.6

Victoria

110,758

114,313

3.2

Corpus Christi

403,818

415,376

2.9

Abilene

158,264

159,521

0.8

Beaumont–Port Arthur

382,827

378,255

-1.2

Wichita Falls

151,206

147,328

-2.6

Metropolitan Area Austin–Round Rock

Brownsville-Harlingen Texas

1998

*July 1 population estimates Source: U.S. Census Bureau

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2009 Texas Metro Market Overview

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Odessa


2009 Texas Metro Market Overview

Odessa

Education Educational Attainment, Persons Age 25 and Older, 2000 (in percent) County

High school graduate

Some college, Associate’s Bachelor’s Master’s Doctorate no degree degree degree degree degree

Ector

26.8

23.8

5.4

8.6

2.3

0.2

Texas

24.8

22.4

5.2

15.6

5.2

0.8

Source: U.S. Census Bureau

Educational Level, Persons Age 25 and Older (in percent) Odessa-Midland MSA

Texas

High School Graduate or Higher

73.5

79.2

Bachelor’s Degree or Higher

18.4

23.9

Level of Education

Source: U.S. Census Bureau, 2000 (1999 definition)

Local College and University Enrollment, Fall Semester School

2004

2005

2006

2007

2008

Odessa College

4,569

4,788

4,571

4,580

4,687

University of Texas of the Permian Basin

3,291

3,406

3,462

3,559

3,496

Source: Texas Higher Education Coordinating Board

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2009 Texas Metro Market Overview

Odessa

Employment Distribution of Employment in Major Categories Odessa MSA 70,000

60,000

Total Annual Jobs

50,000

40,000

30,000

20,000

10,000

0 2004

2005

2006

2007

Natural Resources and Mining and Construction

Manufacturing

Trade, Transportation and Utilities

Information

Financial Activities

Professional and Business Services

Educational and Health Services

Leisure and Hospitality

Government Source: Texas Workforce Commission and Real Estate Center at Texas A&M University

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2008


2009 Texas Metro Market Overview

Odessa

Metropolitan Area Nonfarm Employment Change 1998–2008 Wichita Falls Beaumont–Port Arthur Abilene Waco Lubbock El Paso Corpus Christi Amarillo Texarkana Dallas–Fort Worth–Arlington Texas Odessa Houston–Sugar Land–Baytown Tyler San Antonio College Station–Bryan Longview Killeen–Temple–Fort Hood Brownsville-Harlingen Austin–Round Rock Laredo Midland McAllen-Edinburg-Mission 0%

10%

20%

30%

40%

Note: San Angelo, Sherman, Victoria MSAs no longer collect employment data Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

~10~

50%

60%


2009 Texas Metro Market Overview

Odessa

Texas Metropolitan Area Nonfarm Employment Change 1998

2008

Percent Change

140,000

218,600

56.1

63,500

90,300

42.2

600,700

777,400

29.4

Brownsville-Harlingen

99,700

126,300

26.7

Midland

56,000

70,200

25.4

103,600

126,900

22.5

Longview

81,000

98,400

21.5

College Station–Bryan

78,200

94,700

21.1

705,500

853,200

20.9

79,500

95,800

20.5

2,167,400

2,602,700

20.1

53,300

63,400

18.9

Texas

8,938,300

10,616,800

18.8

Dallas–Fort Worth–Arlington

2,569,000

2,986,300

16.2

51,100

58,100

13.7

Amarillo

100,000

113,400

13.4

Corpus Christi

161,700

183,100

13.2

El Paso

247,900

278,200

12.2

Lubbock

117,100

130,700

11.6

Waco

97,000

107,400

10.7

Abilene

62,900

67,900

7.9

160,700

164,600

2.4

61,500

61,700

0.3

San Angelo

n/a

n/a

n/a

Sherman-Denison

n/a

n/a

n/a

Victoria

n/a

n/a

n/a

Metropolitan Area McAllen-Edinburg-Mission Laredo Austin–Round Rock

Killeen–Temple–Fort Hood

San Antonio Tyler Houston–Sugar Land–Baytown Odessa

Texarkana

Beaumont–Port Arthur Wichita Falls

Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University *Note: San Angelo, Sherman and Victoria MSAs no longer collect employment data

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2009 Texas Metro Market Overview

Odessa

Nonfarm Employment Growth Odessa MSA 8.0 6.7

6.3

Perc cent Change from Previous Year

6.0

4.0 1.8

2.0

0.0

4.2

2.4

3.1 0.4

1.4

2003

2004

0.0 0.0

-2.0

-4.0

-6.0

-8.0 -8.1 -10.0 1998

1999

2000

2001

2002

2005

Source: Texas Workforce Commission and Real Estate Center at Texas A&M University

Odessa MSA Nonfarm Employment Percent Change

Year

Employment

1998

53,300

-

1999

49,000

-8.1

2000

49,900

1.8

2001

51,100

2.4

2002

51,100

0.0

2003

51,300

0.4

2004

52,000

1.4

2005

53,600

3.1

2006

57,000

6.3

2007

59,400

4.2

2008

63,400

6.7

Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

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2006

2007

2008


2009 Texas Metro Market Overview

Odessa

2007 Average Hourly Wage Dallas–Fort Worth–Arlington

19.98

Austin–Round Rock

19.87

Houston–Sugar Land–Baytown

19.72

Midland

19.54

College Station–Bryan

18.94

Texas

18.21

Beaumont–Port Arthur

16.91

Lubbock

16.75

San Antonio

16.64

Odessa

16.53

Amarillo

16.25

Tyler

16.02

Victoria

15.92

Corpus Christi

15.88

Waco

15.66

San Angelo

15.54

Sherman-Denison

15.5

Killeen–Temple–Fort Hood

15.43

Longview

15.41

El Paso

15.31

Wichita Falls

15.25

Texarkana

15.25

Abilene

14.67

Laredo

14.27

Brownsville-Harlingen

13.35

10

12

14

Note: Data reflect most recent year surveyed Source: Texas Workforce Commission

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16

18

20

22


2009 Texas Metro Market Overview

Odessa

Unemployment Rate Odessa MSA 12

10.6 10

Percent

8 6.6

6.8 5.9

6 5.4

5

4.7

4

3.9 3.4

3.4

2

0 1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: Texas Workforce Commission and Real Estate Center at Texas A&M University

Employment Growth by Industry Odessa MSA

Texas

Employment Growth 2008 (Percent Change)

6.7

2.1

Unemployment Rate 2008 (Percent Change)

3.4

4.9

4,000

221,700

Net Job Change in 2008

2008 Employment Growth by Sector (Percent Change) Natural Resources and Mining and Construction

15.9

5.4

Manufacturing

4.7

-1.1

Trade, Transportation and Utilities

4.6

3.1

Information

0.0

-1.7

Financial Activities

7.7

0.8

Professional and Business Services

7.3

2.8

Educational and Health Services

1.8

3.1

Leisure and Hospitality

5.4

2.8

Government

1.1

2.4

Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

~14~

2008


2009 Texas Metro Market Overview

Odessa

Odessa Top Ten Employers Employer

Sector

Employees

Ector County ISD

Education

3,430

Medical Center Hospital

Health care

1,786

Saulsbury Companies

Electrical, computers & construction

1,165

Holloman Companies

Oil field construction

1,000

Walmart

Retail

923

City of Odessa

Government

867

Odessa Regional Hospital

Health care

740

Odessa College

Education

710

Haliburton Services

Oil and gas

685

University of Texas of the Permian Basin

Education

659

Source: Odessa Development Corporation, Sept. 2008

Odessa Top Ten Private Employers Employer

Sector

Saulsbury Companies

Electrical, computers & construction

1,165

Holloman Companies

Oil field construction

1000

Walmart

Retail

923

Odessa Regional Hospital

Health care

740

Haliburton Services

Oil and gas

685

Nurses Unlimited Inc.

Health care

582

Weatherford CPS

Oil and gas

553

Telvisa Inc.

Customer service

550

Bobby Cox Companies Inc.

Retail-restaurants

457

Investment Corp. of America

Financial

447

Source: Odessa Development Corporation, Sept. 2008

~15~

Employees


2009 Texas Metro Market Overview

Odessa

Economy 2008 Gross Retail Sales Per Capita Brownsville-Harlingen Texarkana McAllen-Edinburg-Mission Corpus Christi El Paso Wichita Falls College Station–Bryan Sherman-Denison Beaumont–Port Arthur Waco San Antonio San Angelo Victoria Laredo Abilene Fort Worth–Arlington MD Killeen–Temple–Fort Hood Austin–Round Rock Texas Houston–Sugar Land–Baytown Longview Tyler Lubbock Amarillo Midland Odessa Dallas-Plano-Irving MD 5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

Note: Data reflect most recent year surveyed; MD = subset of an MSA Source: Texas Comptroller's Office

Odessa MSA Gross Retail Sales Year

Total Sales

Sales per Capita

1998

$1,335,075,505

$10,806

1999

$1,305,096,621

$10,658

2000

$1,425,344,239

$11,768

2001

$1,576,728,511

$13,045

2002

$1,410,034,999

$11,524

2003

$1,507,156,839

$12,258

2004

$1,560,547,775

$12,555

2005

$1,867,146,500

$14,897

2006

$2,218,178,344

$17,403

2007

$2,464,029,695

$19,017

2008

$2,705,404,820

$20,505

State Average 2008:

$16,904

Source: Texas Comptroller’s Office

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2009 Texas Metro Market Overview

Odessa

Infrastructure Midland Airline Boardings Airport

2004

2005

2006

2007

2008 487,403

Midland International Airport Enplaned

414,522

446,937

473,851

491,321

Deplaned

415,965

445,893

469,207

486,010

481,961

Total

830,487

892,830

943,058

977,331

969,364

Source: Midland International Airport

`

Midland Airport Cargo Statistics (in pounds) Airport

2004

2005

2006

2007

2008

Enplaned

2,453,540

2,757,216

3,122,293

3,181,692

3,194,802

Deplaned

3,221,278

3,834,982

4,484,639

4,596,756

4,616,503

Total

5,674,818

6,592,198

7,606,932

7,778,448

7,811,305

Midland International Airport

Source: Midland International Airport

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2009 Texas Metro Market Overview

Odessa

Midland Airline Boardings and Cargo Statistics Totals 1,000,000

9,000,000

8,000,000 950,000

7,000,000

6,000,000

Passengers

5,000,000

4,000,000 850,000 3,000,000

2,000,000

800,000

1,000,000

750,000

0 2004

2005

2006 Passengers

Source: Midland International Airport

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2007 Cargo

2008

Cargo (in lbs)

900,000


2009 Texas Metro Market Overview

Odessa

Multifamily Odessa–Permian Basin Apartment Statistics 2008 Texas Metro Odessa– Average Permian Basin Average rent per square foot

$0.68

$0.83

Average rent for units built since 2000

$0.52

$0.90

Average occupancy

98.3%

93.9%

Average occupancy for units built since 2000

97.2%

94.9%

Source: Apartment MarketData Research

5+ Multifamily Building Permits Odessa-Midland MSA 500 450 400 350

Units

300 250 200 150 100 50

Data reflects years in which data is available.

0

Source: U.S. Census Bureau and Real Estate Center at Texas A&M University

~19~

1999 MSA definition


2009 Texas Metro Market Overview

Odessa

Housing Home Price Appreciation Odessa MSA The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 25.0%

Change from Previous Year

20.0%

15.0%

10.0%

5.0%

0.0%

Odessa

Texas

4Q-08

2Q-08

4Q-07

2Q-07

4Q-06

2Q-06

4Q-05

2Q-05

4Q-04

2Q-04

4Q-03

2Q-03

4Q-02

2Q-02

4Q-01

2Q-01

4Q-00

2Q-00

4Q-99

2Q-99

4Q-98

-5.0%

USA

Source: Office of Federal Housing Enterprise Oversight

National Home Price Appreciation The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 12% 10%

6% 4% 2% 0% -2% -4% -6% -8%

California

Florida

Source: Office of Federal Housing Financing Agency

~20~

Texas

USA

4Q-08

2Q-08

4Q-07

2Q-07

4Q-06

2Q-06

4Q-05

2Q-05

4Q-04

2Q-04

4Q-03

2Q-03

4Q-02

2Q-02

4Q-01

2Q-01

4Q-00

2Q-00

4Q-99

2Q-99

-10% 4Q-98

Change from Previous Year

8%


2009 Texas Metro Market Overview

Odessa

2008 Housing Affordability Index MLS Odessa Texas United States

2008 MedianPriced Home

Required Income to Qualify

Median Family Income

HAI*

HAI for First-Time Homebuyers**

$166,200

$39,140

$47,000

1.20

0.72

$97,600

$22,985

$55,000

2.39

1.55

$196,600

$46,152

$61,500

1.33

0.66

*The HAI is the ratio of the median family income to the income required to buy the median-priced house using standard mortgage financing at the current interest rate. Standard financing is a fixed-rate, 30-year loan covering 80 percent of the cost of the home. A HAI of 1.00 indicates that the median family income is exactly equal to the required income to qualify for the standard loan to purchase the median-priced house. **First-time home buyer is assumed to purchase a home equal to the first quartile home price using a 90 percent home loan at an interest rate 0.5 percent greater than the standard current rate. Source: Real Estate Center at Texas A&M University

Price Distribution of MLS Homes Sold Odessa-Midland Area 14.0

12.0

Percent

10.0

8.0

6.0

4.0

2.0

0.0

2006

2007

Source: Real Estate Center at Texas A&M University

~21~

2008


2009 Texas Metro Market Overview

Odessa

Price Distribution of MLS Homes Sold, Odessa-Midland Area (in percent) Price Range

2002

2003

2004

2005

2006

2007

2008

$29,999 or less

-

-

-

-

5.8

3.3

2.4

30,000–39,999

-

-

-

-

5.4

3.2

2.3

40,000–49,999

-

-

-

-

6.0

3.6

3.0

50,000–59,999

-

-

-

-

7.5

5.1

2.9

60,000–69,999

-

-

-

-

10.8

5.3

4.4

70,000–79,999

-

-

-

-

8.6

7.7

6.6

80,000–89,999

-

-

-

-

8.6

8.4

6.7

90,000–99,999

-

-

-

-

6.3

6.4

8.7

100,000–119,999

-

-

-

-

9.3

10.0

11.7

120,000–139,999

-

-

-

-

10.1

12.7

11.5

140,000–159,999

-

-

-

-

4.3

8.4

9.5

160,000–179,999

-

-

-

-

4.3

4.9

6.4

180,000–199,999

-

-

-

-

2.8

4.7

5.8

200,000–249,999

-

-

-

-

5.1

7.4

6.8

250,000–299,999

-

-

-

-

2.3

4.6

5.2

300,000–399,999

-

-

-

-

1.7

2.7

3.9

400,000–499,999

-

-

-

-

0.3

0.7

1.3

500,000 and more

-

-

-

-

0.7

1.0

0.9

“-” represents unreported data or nonparticipation in Real Estate Center’s survey. Source: Real Estate Center at Texas A&M University

Property Tax Rate 2008 Tax Rate per $100 Valuation

Taxing Entity* City of Odessa

0.562

Ector County ISD

1.129

Ector County

0.358

Total

$2.05

*Only the typical taxing entities are listed. However, there are numerous taxing entities that need to be taken into account for an actual tax rate calculation. See following link for a more complete list: http://www.ectorcad.org/dis.php?p=taxrates Source: Ector County Appraisal District

~22~


2009 Texas Metro Market Overview

Odessa

Average Sales Price Odessa-Midland MLS $160,000 $144,200 $140,000

$133,300

$120,000 $108,600

$100,000

$80,000

$60,000 $60 000

$40,000

$20,000 Data not available through 2005 $0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Source: Real Estate Center at Texas A&M University

Yearly Home Sales and Months Inventory Odessa-Midland MLS 1,800

1

1,600

0.9 0.8

1,400

0.7

Sales

0.6 1,000 0.5 800 0.4 600

400

200

0.3 Months Inventory measures the current absorption rate and how long it would take for current supply to be depleted if no other listings came on the market. Data not available through 2005.

0.2 0.1

0

0 1999

2000

2001

2002

2003 Sales

Source: Real Estate Center at Texas A&M University

~23~

2004 Supply

2005

2006

2007

2008

Months Inventory

1,200


2009 Texas Metro Market Overview

Odessa

Single-Family Home Sales Volume Odessa-Midland 180

160

140

Units

120

100

80

60

40

20

0 Jan

Feb

Mar

Apr

May

Jun 2006

Jul 2007

Aug

Sep

Oct

Nov

Dec

2008

Source: Real Estate Center at Texas A&M University

800

$160,000

700

$140,000

600

$120,000

500

$100,000

400

$80,000

300

$60,000

200

$40,000

100

$20,000

0

$0 1999

2000

2001

2002

2003 Units

2004

2005

2006

2007

2008

Average Value

Source: U.S. Census Bureau and Real Estate Center at Texas A&M University

~24~

1999 MSA definition

Average Value

Units

Single-Family Building Permits and Average Value Odessa-Midland


2009 Texas Metro Market Overview

Mortgage Rates 30-Year Fixed

18.00 16.00

3.0

2.5

14.00 12.00

2.0

10.00

1.5

8.00 6.00

Points

Rate

Odessa

1.0

4.00

0.5

2.00 0.00

0.0

Annual Average Rate

Annual Average Points

Source: Federal Home Loan Mortgage Corporation

Mortgage Rates 15-Year Fixed

9.00

1.8

8.00

1.6

7.00

1.4

6.00

1.2

5.00

1.0 4.00

0.8

3.00

0.6

2.00

0.4

1.00

0.2

0.00

0.0

Annual Average Rate Source: Federal Home Loan Mortgage Corporation

~25~

Annual Average Points

Points

Rate

2.0


2009 Texas Metro Market Overview

Odessa

Hotel Hotel* Occupancy and Rental Rates 2007 Odessa # Rooms (in thousands) Average daily rate Occupancy rate (in percent)

2008

Texas

Odessa

Texas

1.8

349.7

1.9

360.4

$73.52

$85.28

$88.10

$89.78

71.6

61.4

76.4

61.4

*Only properties exceeding $18,000 in the current quarter are included; those units below $18,000 only result in 1.5 percent of the total state revenues, and have been excluded from this database. Sources: Office of the Governor Economic Development and Tourism and Source Strategies Inc. of San Antonio

~26~


Real Estate Center This annual report is provided free by the Real Estate Center at Texas A&M University. We strive to provide the most accurate and up-to-date data to paint a detailed picture of Texas’ Metropolitan Statistical Areas. However, links contained in this report may change or become obsolete. The Real Estate Center advises contacting the original source regarding broken links. The Center also provides numerous publications, resource and data on building permits, employment, population and home sales. Click on icons below to visit our website.

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AT TEXAS A&M UNIVERSITY

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REPORT COMPILED BY:

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