Pandemic or not, homeownership in Houston has broken some records recently.Photo by Ariel Skelley/Getty

Propelled in large part by rock-bottom interest rates for mortgages, the homeownership rate in Houston is knocking on the door of its highest level in at least 10 years.

An August 12 report from the Texas A&M Real Estate Center shows that in the second quarter of 2020, the Houston metro area experienced its highest homeownership rate since the center started recording the regional rate in 2005. The area's homeownership rate was 68.2 percent in the second quarter of this year, up from 65.5 percent in the previous quarter and up from a low of 57.6 percent in the fourth quarter of 2017.

The upward trend mirrors what's happening statewide. In June, Texas' homeownership rate hit a new high mark.

According to the report, a record 67.5 percent of Texans owned their homes in the second quarter of this year, up from 64.5 percent in the first quarter and from the record low of 60.8 percent in the fourth quarter of 1997.

"Despite falling sales in April and May, Texas' second-quarter homeownership rate was the highest since recordkeeping began in 1996. Texas now lags the national rate by only half a percent, the smallest in eight years," James Gaines, the center's chief economist, says in an August 12 release.

Here's how the numbers break down in the state's other large cities:

Among the state's four major metro areas, Austin saw the steepest climb in the homeownership rate. The rate jumped to 65.3 percent during the second quarter of 2020 from 59.4 percent in the previous quarter. Since the real estate center began tracking Austin's homeownership rate in 1996, the highest rate was 69.3 percent in the third quarter of 2006 and the lowest rate was 49.2 percent in the fourth quarter of 1996.

The homeownership rate in DFW hit 64.7 percent in the second quarter of this year. That's up from 62.7 percent in the first quarter of 2020 and slightly below the high mark of 65 percent in the first quarter of 2010. The real estate center started tracking DFW's homeownership rate in 2005.

In the San Antonio area, the second-quarter homeownership rate was sandwiched between its highest-ever and lowest-ever rates since 1996. The rate for this year's second quarter stood at 66.2 percent, up from 66 percent in the previous quarter. Since 1996, the highest rate was 76 percent the fourth quarter of 2004 and the lowest rate was 56.3 percent in the first quarter of 1996.

Spikes in homeownership rates across the state's four major metro areas came despite a recent jump in median sale prices. Real estate platform Zillow reports that as of the end of June, the median sale price of a single-family home was:

  • $256,400 in Houston, up 1.7 percent from the same time a year ago.
  • $246,753 in San Antonio, up 3.8 percent from the same time a year ago.
  • $289,000 in DFW, up 2.3 percent from the same time a year ago.
  • $342,345 in Austin, up 3.7 percent from the same time a year ago.

Gaines says pent-up demand and record-low mortgage rates pushed statewide home sales up 29.4 percent in June.

"Texas homes are selling at a record pace. A dwindling supply of active listings and a resurgence in home sales pulled Texas' months of inventory down to an all-time low of 2.8 months," according to the real estate center's report.

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This article originally ran on CultureMap.

For better or for worse, COVID-19 has increased the need for technology in real estate. Getty Images

Houston expert: How COVID-19 fast-tracked real estate technology

Guest column

COVID-19 has impacted every facet of our lives, and the housing market is no exception. The majority of real estate, for better or worse, relies on in-person interactions.

Things like wet signatures, home tours, inspections, and appraisals all require physical attendance — making it difficult to create digital alternatives.

Although many of these disruptions are a hindrance this unique time also presents an opportunity for the real estate industry to showcase its ability to grow and adapt to the digital age.

Technology's grand entrance into real estate

As a people-first business, real estate has always been based on relationships and face to face interactions which make transactions amid a pandemic excruciatingly difficult. Although technology and real estate are not completely foreign with companies such as Zillow and OpenDoor having established their niche, many of the more traditional real estate companies had yet to fully embrace the reality of technology's arrival. The thought was a real estate transaction must be sealed with a handshake, a wet signature, and a bottle of champagne.

Upon the onset of COVID-19, many quickly realized that technology was no longer an option but in order to endure this crisis adoption of disruptive innovations was a necessity. Moreover, with millennial homebuyers being the most active clientele the industry needed to meet them where they are — online.

Although there is nothing like the personal touch of a guided tour, home showings had to adjust to adapt to COVID-19 by embracing and utilizing 21st century technology. This was achieved through videos, high quality images, and innovative staging posted online for potential buyers to take 360-degree tours. Rather than sacrificing nuances such as a well-staged home, which has shown to have the potential to increase a home's sale price by up to 6 percent, real estate agents crafted innovative ways to digitally put a home's possibilities on display for buyers to see.

Another impediment created by COVID-19 was the way people close. Many documents require wet signatures. Fortunately, remote closing technology has improved over the last decade and COVID-19 increased the adoption rate of these platforms by individual states and lending institutions at a much quicker rate than would have been otherwise.

Some examples of these useful tools are remote online notarizations (RONS), mobile closings, and electronic signatures. While these tools are extremely helpful there is still much in the way of mass adoption before the industry can be as nimble and adaptive to not experience large stalls in the face of this sort of unprecedented pandemic. In time, as we dive deeper into the digital age, it would seem that these options would become more widely accepted throughout the industry.

The dangers of tech and real estate

As new digital adaptations increase, so do the risks. Although the introduction of new technology has enabled the industry to continue operating, it also increases the already prevalent risk of cyber security threats.

Phishing attempts and cyber-attacks are on the rise. Hackers are trying to capitalize on increased exposure from employees connecting on home devices. Simply educating employees and clients of the dangers associated is the first line of defense. Internally and throughout the industry, we have seen companies who are committed to ensuring each transaction is done safely and securely through VPNs, and other programs that guarantee the protected transfer of funds.

As a company, we have made cyber security a top priority by requiring multi-factor authentications, third party wire verification services through a company named CertifID and implementing consistent training on how to spot malicious phishing attempts.

What's next for the Houston housing market?

Consumer confidence is key to the success of the housing market. As Houston's economy begins to reopen, we have seen a substantial increase in transactions being finalized and consummated through closings. Both refinances and purchase transactions are on the uptick at the moment and that is encouraging. However, as new waves of the virus roll in there is always the chance that business slows, and the idea of buying a house fades.

As we wait for consumer behaviors to stabilize to the new normal, savvy buyers and borrowers have the opportunity to capitalize on a unique opportunity by taking advantage of low mortgage rates for increased buying power or to lower payments on existing mortgages. Transactions beget transactions and the more movement there is the better for the industry.

Lastly, as with all disruption comes opportunity and opportunity abounds because of COVID-19. With so many companies being forced to adopt new ways of operating due to the pandemic the real estate industry has a chance to adopt a more advanced foundation based on available technology which will help insulate it from future disruptions. With some innovation, a simpler, more efficient overall experience can be created for customers.

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Eric Fontanot is president of Patten Title a full-service closing company with locations in Houston, Austin, and Dallas. Patten Title's technology-enabled team of title and escrow professionals continue to provide real title solutions for customers in Texas.

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Axiom Space-tested cancer drug advances to clinical trials

mission critical

A cancer-fighting drug tested aboard several Axiom Space missions is moving forward to clinical trials.

Rebecsinib, which targets a cancer cloning and immune evasion gene, ADAR1, has received FDA approval to enter clinical trials under active Investigational New Drug (IND) status, according to a news release. The drug was tested aboard Axiom Mission 2 (Ax-2) and Axiom Mission 3 (Ax-3). It was developed by Aspera Biomedicine, led by Dr. Catriona Jamieson, director of the UC San Diego Sanford Stem Cell Institute (SSCI).

The San Diego-based Aspera team and Houston-based Axiom partnered to allow Rebecsinib to be tested in microgravity. Tumors have been shown to grow more rapidly in microgravity and even mimic how aggressive cancers can develop in patients.

“In terms of tumor growth, we see a doubling in growth of these little mini-tumors in just 10 days,” Jamieson explained in the release.

Rebecsinib took part in the patient-derived tumor organoid testing aboard the International Space Station. Similar testing is planned to continue on Axiom Station, the company's commercial space station that's currently under development.

Additionally, the drug will be tested aboard Ax-4 under its active IND status, which was targeted to launch June 25.

“We anticipate that this monumental mission will inform the expanded development of the first ADAR1 inhibitory cancer stem cell targeting drug for a broad array of cancers," Jamieson added.

According to Axiom, the milestone represents the potential for commercial space collaborations.

“We’re proud to work with Aspera Biomedicines and the UC San Diego Sanford Stem Cell Institute, as together we have achieved a historic milestone, and we’re even more excited for what’s to come,” Tejpaul Bhatia, the new CEO of Axiom Space, said in the release. “This is how we crack the code of the space economy – uniting public and private partners to turn microgravity into a launchpad for breakthroughs.”

Chevron enters the lithium market with major Texas land acquisition

to market

Chevron U.S.A., a subsidiary of Houston-based energy company Chevron, has taken its first big step toward establishing a commercial-scale lithium business.

Chevron acquired leaseholds totaling about 125,000 acres in Northeast Texas and southwest Arkansas from TerraVolta Resources and East Texas Natural Resources. The acreage contains a high amount of lithium, which Chevron plans to extract from brines produced from the subsurface.

Lithium-ion batteries are used in an array of technologies, such as smartwatches, e-bikes, pacemakers, and batteries for electric vehicles, according to Chevron. The International Energy Agency estimates lithium demand could grow more than 400 percent by 2040.

“This acquisition represents a strategic investment to support energy manufacturing and expand U.S.-based critical mineral supplies,” Jeff Gustavson, president of Chevron New Energies, said in a news release. “Establishing domestic and resilient lithium supply chains is essential not only to maintaining U.S. energy leadership but also to meeting the growing demand from customers.”

Rania Yacoub, corporate business development manager at Chevron New Energies, said that amid heightening demand, lithium is “one of the world’s most sought-after natural resources.”

“Chevron is looking to help meet that demand and drive U.S. energy competitiveness by sourcing lithium domestically,” Yacoub said.

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This article originally appeared on EnergyCapital.