Galveston Area Median unit prices rose slightly for the period showing market strength and bode well for a good long term outlook. Texas has a strong economy, a growing population and steady property appreciation. The best market fundamentals in the country.  The predictions by many experts are very postive for the future. Read More	Market comparisons for Jan 2007 & Jan 2008 for the Galveston area reflect a general down turn in sales volume. MLS records reflect sales decreased by 24 units in Jan 2008, resulting in a dollar sales decrease of slightly over 7 1/2 million dollars. The downturn is most likely directly related to uncertainty in the economy, the Presidential race and tightening of the credit market.
also see the Galveston Area Year-end Market Analysis for more information click here for current sales analysis for the Galveston Area, (register to see more charts) click here to see the complete Texas Gulf Coast market analysis

The national credit issue has little effect on the second home market and it's buyers

The banking system is welcoming back many of the more creditworthy customers, but the process is expected to take some time. However, Texas coastal property is the land of second homes. The majority of second home purchasers can afford larger down payments; have above substantially above average credit and enough income to lead the industry to recovery once the mortgage situation corrects itself. Most important, while economic growth is expected to continue to slow, Texas is still expected to outpace the national average.

In the longer term, Texas’ location and cost advantages, fast-growing population and relatively buoyant economy put the state’s housing industry in a strong position to respond when demand turns the corner. Read More

Galveston Area Climate Report
	Texas's climate has always been variable and sometimes extreme—and climate change may intensify this historical pattern. Average state temperatures have varied substantially over the past century, with a warming trend since the late 1960s. Average rainfall has increased slightly, both in the summer and winter, and extreme rainfall events have become more frequent.

Risk Reduction and Adaptation - Improved Building Codes and Modern Systems Built Homes Helping to Reduce Risk for the Newer Homes 

Some climate change is inevitable. The U.S. needs to "climate proof" its domestic infrastructure including military installations, particularly along its coasts, to ensure it is prepared to withstand and respond to extreme weather events. As Hurricane Katrina showed, investments in risk reduction are likely to be much cheaper than disaster response. Substantial investment in risk reduction: coastal defenses, building codes, emergency response plans, and evacuation strategies. Learn More

Towards that end many coastal builders are building homes well beyond the established local building codes. The Insurance Industry has embraced these higher standards as the result in less likelihood of storm damage. These Systems Built hurricane resistant homes have added value for the homebuyer.

TexasGulfCoastOnline.com’s demographic data for February, 2008

Galveston’s Top Five Potential Buyers Demographic Graphs show that most potential buyers with interest in the Galveston area are United States Citizens from the Houston-Beaumont and Dallas areas.  With a surprising increase of interest from the McAllen Texas area this month.  We typically see Dallas or Beaumont in the interest level chart where you see McAllen this month. New Yorkers also expressed the highest interest in the Galveston area, followed by California, Louisiana and Georgia. Californian’s interest most likely is due to the recent real estate value crisis wrecking havoc on California coastal properties.  Read More States that are clearly in trouble: California with a 286% increase in foreclosure activity from 2006, Arizona up 168%, Nevada up 279% and Florida up 144%. Foreigner Buyers also made numerous inquiries about the Galveston area as a falling dollar produced bargains for foreign buyers. Canadians showed the most interest followed by the Netherlands England and Belize. The events of 2007 have made the United States much more affordable for international home buyers. Severe dollar declines against the euro and pound have made U.S. homes much cheaper for Europeans. But even foreign buyers without that sort of currency advantage are benefiting from sharp drops in housing prices at a time when problems in mortgage lending are keeping many Americans out of the market. At the same time, many foreign real estate markets, especially in Europe, have experienced sharp increases in home prices. Learn More

your comment that banks are welcoming back buyers with excellent credit, increased down payments and higher incomes is not 100% accurate. I have stellar credit (745 score), have put down 40% on an offer and I do make good money as my salary is based upon my company in New York and is above the salaries paid here in Texas. The bank turned me down flat! I have owned a total of 7 houses since 1998 and have paid every mortgage off. I am on my 8th home with a mortgage that is 39.4% of it's appraised value. The banks just don't want to take on any risk at all, even with someone like me! IF it were my primary residence it would be no problem, but they feel a second home is easier to walk away from should I become financially strapped.

Fantastic Comment and thank you for sharing that, we need to hear such information.

Indeed, tighter credit issues may just now be affecting second home loans.

My fear is that it could be bad news for second home sales, especially those under $300,000 - why that number - because anyone who can afford more than that for a second home will likely not need credit.