April 21, 2014
Economic conditions in Texas are strong and improving, and this situation could help support loan sales by increasing both the supply and demand for credit.
As the business climate gets better, individuals and businesses might seek debt more actively, and banks could become more willing to provide loans.
Texas has recovered from economic downturn
The Lone Star State has recovered completely in the several years following the Great Recession, economists working for both the private and public sectors told state lawmakers late last month, according to The Associated Press.
John Heleman, chief revenue estimator in the Texas comptroller's office, said that the state has replenished all the jobs lost since the economic downturn, the media outlet reported. State officials certainly have good reason to be optimistic about the labor market there, as the unemployment rate in the Midwestern state is 5.7 percent, which is a full point lower than the national average.
Consumer confidence strong, says official
Amid these positive developments, Heleman noted that consumer confidence in Texas is above average, the media outlet reported. He said that other Midwestern states, including Ohio, continue to suffer from consumers who are wary.
As the recovery continues and the job market strengthens, the sentiment of these key people could keep getting better.
High consumer confidence could help drive up the demand for credit, as optimistic individuals are more likely to obtain car loans and mortgages. In addition, lenders may be more than willing to supply them.
Banks drawn to Texas
Banks interested in expanding have been flocking to the Lone Star State, recognizing the significant opportunity that exists there, according to SNL Financial. Many lenders are looking to buy up competitors in a fierce bid to increase their market share, and their willingness to engage in these ventures shows the robust potential of the region's credit markets.
Amid these conditions, many expect that cities in Texas will see an increase in both credit products and also deposits between 2013 and 2018, the media outlet reported. Some anticipate that this will be the case across the entire state.
While conditions in the Lone Star State seem to be improving - which could point to healthy future activity - Texas has a strong demand to buy loans now. Investors that are interested in purchasing loan portfolios might consider speaking with Garnet Capital Advisors, which has several of these packages available for sale.