By Bryan Pope, Associate Editor, Real Estate Center
COLLEGE STATION, Tex. (Real Estate Center) — Texas’ economic recovery is strengthening, according to the latest monthly economic review from the Real Estate Center at Texas A&M University.

After 16 months of job losses, the state had its third month of positive annual employment growth.

Texas’ employment growth rate from July 2009 to July 2010 was 1.3 percent compared with a rate close to zero percent for the nation.

The state’s private sector posted a positive annual employment growth rate of 1.2 percent compared with a zero percent rate for the United States.

The seasonally adjusted unemployment rate in Texas rose from 7.9 percent in July 2009 to 8.2 percent in July 2010, while the U.S. rate increased from 9.4 to 9.5 percent over the same period.

All Texas industries except the construction and information industries had more jobs in July 2010 than in July 2009.

Nineteen Texas metro areas had positive employment growth rates from July 2009 to July 2010, up from 16 for the period from June 2009 to June 2010. San Angelo ranked first in job creation, followed by College Station-Bryan, Austin-Round Rock-San Marcos and McAllen-Edinburg-Mission.

The state’s actual unemployment rate in July 2010 was 8.5 percent. Midland had the lowest unemployment rate followed by Amarillo, San Angelo, and College Station-Bryan.

The complete economic review, written by Center Research Economist Dr. Ali Anari, is available on the Center’s website at http://recenter.tamu.edu/econ/.

TEXAS (The Atlantic) – Even in the middle of the Great Recession, Texas is faring well compared with the rest of the nation, racking up an ever-growing list of accomplishments.

 In addition to ranking fourth in the country with the least amount of state debt, Texas has four cities in the Milken Institute’s Top Five Best Performing Cities Index, four among Forbes’ list of top ten “Cities Where the Recession is Easing,” and four in last year’s Top Ten in Homebuilding.

 Texas is home to three of the top five most resilient major metro areas for employment, with McAllen first, Austin third, San Antonio fifth and El Paso and Houston not far behind in the top 15.

 The Lone Star State also claims 64 Fortune 500 companies — more than any other state — in addition to being dubbed Top State for Business for the second time in three years by CNBC.

 The Atlantic says these accomplishments are because Texas’ major cities have chosen comparatively stable industries — Houston is the nation’s energy hub, Austin leads in education and technology, and San Antonio dominates the health care and education sector in addition to military spending.

 “Our research shows that the more tax incentives and less regulation you have, and the less likely businesses are to get sued, the more likely it is they’ll want to come and prosper in your state,” said Brooke Rollins, president of the Texas Public Policy Foundation.

 These factors support Texas’ position as a global economic leader, having the 15th largest economy in the world.

FORT WORTH (Fort Worth Star-Telegram) – Residential foreclosures last month were down 2.9 percent in Texas and 10 percent nationwide compared with a year ago, according to the latest data from RealtyTrac.

 Some 11,727 postings were filed last month in Texas, which means one in every 819 housing units received a notice, RealtyTrac said.

 Nationwide, 325,229 postings were filed, or one in every 397 housing units. Although it’s a drop from a year ago, the number was up 3.6 percent from June, the firm said.

 July was the 17th straight month that U.S. foreclosure postings topped 300,000, RealtyTrac CEO James Saccacio said.

AUSTIN (Texas Association of Realtors) – Texas Department of Savings & Mortgage Lending Commissioner Doug Foster has issued a notice allowing the continuation of the de minimis exemption until further action is taken by the state legislature.

 This exemption, which was briefly repealed by the federal SAFE Act, means that a seller can once again finance up to five properties in a 12-month period without being licensed as a residential mortgage loan originator.

HOUSTON (Metrostudy, Houston Business Journal) – Houston’s economy is showing signs of recovery, according to a recent Metrostudy report.

 The annual 2009 Census Household survey showed that the Houston-Sugar Land-Baytown area added over 140,000 to its total population, a 2.5 percent increase over one year.

“The continued arrival of people in Texas fuels demand for housing markets,” said David Jarvis, director of Metrostudy’s Houston division. “This, coupled with a more optimistic employment outlook, signals continued stability in the Houston housing market.”

For the 12 months ending in June 2010, the Houston region lost 17,100 jobs. As recently as December, the 12-month loss exceeded 100,000 jobs. By year’s end, year-over-year comparisons are expected to show moderate gains.

Houston ranked tenth among major U.S. metros for high-salary jobs, according to employment website TheLadders.com.

“We’re seeing hiring in the energy (oil and gas) sector,” said TheLadders.com Editor-in-Chief Matthew Rothenberg. “Considering the makeup of the local economy, it is not a surprise that there are a large number of engineering and consulting positions opening in Houston as well.”

The Houston housing market has continued to show stability through 2nd quarter 2010. Home starts for the quarter were at 5,942, a more than 12 percent increase over the first quarter. And home closings have outpaced new supply, indicating a higher housing demand and reducing total inventories of homes. At current absorption rates, the level of housing supply stands at 6.1 months.

However, the New Home Buyer Tax Credit should be taken into consideration (see “Weak Home Sales Numbers Not Whole Story” in today’s RECON).