2016 was a good year for Texas bankers and the local economy. Jobs were aplenty, home prices were soaring and local Texas banks were making healthy profits. During their Texas Bankers Association’s Annual Strategic Opportunities Conference in November 2016, they might have had some concerns about oil prices though.
Will Oil Prices Recover?
Dallas Texas is a key energy center for the world. This explains some of the success of the region. With Detroit having lost so many automobile jobs and Illinois following suit with a possible bankruptcy in July 2017, there are many people looking for high-paying jobs. Dallas Texas still has many great middle class jobs for the enterprising.
This has led to a housing boom, setting new records. Dallas used to offer low prices on very spacious homes, but now the average house price in the area is rising. Affordable Dallas housing is becoming scarce.
The median home price for Dallas was $274,000 in 2016, which had increased dramatically over the years putting it in the Top Ten for American real estate markets. It has gotten to a point were affordable houses are hard to find. More low income housing development builders are turning to banks, like NexBank for construction loans.
NexBank CEO John Holt Speaks
Unfortunately, oil prices do remain dangerously low. NexBank CEO John Holt discussed potential avenues of growth during the Texas Bankers Association’s Annual Strategic Opportunities Conference. Mr. Holt was a speaker of the “Reinventing Community Banking: Perspectives on Competing by Innovation” committee.
NexBank offers a well-rounded portfolio of mortgages, business loans, student loans and institutional investor services. All are hoping that oil prices recover, so the job market in Dallas remains strong. This could lead to more housing construction loans for NexBank.