MIDLAND, TX (KWES) - Home sales are on the rise in Midland and so far this year, there's been record numbers. Even homes over a million dollars are getting sold. It's something that's leaving the real estate market puzzled because oil isn't exactly booming.
"Oil and gas prices aren't having as much of an effect on our real estate market as compared to the past," said Bill Lanier, Real Estate Agent and Broker.
The real estate market is having a good year and they're giving a lot of credit to the stable oil prices.
"Midland's past real estate history is either extremely robust or extremely in the tank and it's been the good thing about shell," said Lanier. "It's made the real estate market constant, not the big swings that we used to see."
A $935,000 home was sold before it even hit the market. Lanier said the homeowners saw it in 2015 but didn't feel comfortable buying it. With the more stable market, once they heard it would become available they took the plunge.
"I believe our real estate market and general economy is still very dependent upon the oil and gas sector," said Lanier. "Pricing of oil and gas isn't that much of an impact as it used to be, from what I'm seeing."
Oil experts said companies aren't going anywhere, many have faith in the area and have made long term investments.
"They know how valuable the resources are here so people are committing time, effort, money and employees to this region," said Stephen Robertson, Executive Vice President of the Permian Basin Petroleum Association. "Not just for tomorrow, not just for next week but for hopefully years down the road."
Higher end neighborhoods didn't see many sales the past couple of years. This year, homes over $1 million are starting to sell.
"My foggy crystal ball says that the market is going to remain fairly stable," said Lanier. "I don't see any signs of any dramatic increases or downturns at this point."
Lanier said having an inventory of 500-550 homes is ideal to give buyers enough options. We've already dipped under that this year but said developers are ready to start building if they see the need.