The Latest News on the Texas Economy
A recent report on the Central Texas Economy from Jon Hockenyos of Texas Perspectives reveals some very positive new data related to the strength of our local economy. Much attention has been focused strictly on home prices and and fluctuations in the number of homes for sale, etc., but this report focuses on the wider economic picture beyond simply home prices. Read on to learn more about the data in the report and check out the HUGE difference between the last 12 months of jobs figures in Austin compared to the national data.
The big picture:
- The recession is basically over, at least technically. Local consumer spending remains very sluggish, with a few bright signs, but is likely to continue to recover at a reasonable pace.
- Real estate will lag recovery in the rest of the economy, both nationally and in Austin area.
- Overcapacity has been addressed on development side, but the other shoe has yet to drop on values, especially for commercial space. Could see a lot shortage in 18-24 months.
- Resetting of real estate values is crucial to resumption of flow of capital – better understanding of collateral and working off excess inventory will set stage for future investment.
- Job creation can’t really begin to accelerate without new investment. Along with everything else, there is too much uncertainty on both economic and public policy front at this point. Look for job growth toward the end of 2010 and in to 2011.
- Confidence and capacity to spend are slowly recovering – expect about another year before balance has been restored. Recovery is typically U-shaped at best.
While the national employment growth has been in the negative column for each quarter since Q2 of 2008 (including a 4.3% drop in Q3 of 2009 and another 3.5% in Q4), the Austin employment growth shows a different story.
Every single year since 2004 Austin has added jobs, and then after (in 2009) losing the 2.3% gain made in 2008, Austin has actually added jobs again so far in 2010.
It’s a remarkable figure when considering the fact that the national economy is hardly back on track (with Goldman executives being taken to task, lenders finally acquiescing about mortgage compromises to keep people in their homes, etc.). Check out the two charts below for a snapshot:
Want to check out the full text of the extensive economic report comparing the Texas (and specifically Austin) economy to the national figures? Download the PDF here.
About Red Home Realty
Red Home Realty is a forward-thinking group of ambitious real estate professionals that look at real estate differently because the old way is broken. Traditional real estate brokers have had their fun, and now it’s our turn – We’re changing the game in Austin real estate.
We’re Tech Nerds - While some Austin Realtors are struggling to sync their Blackberry, we live and breathe technology. From our powerful Austin Home Search tool for buyers to our online and social media marketing for sellers, we use technology and common sense to connect with the market.
20% Cash Back Rebate – We make it easy for savvy consumers to find their new home online so when you buy with us, you get 20% cash back. It’s like one of those big bailouts you’ve heard about, except the money goes in your pocket, not to Wall Street.
It’s all about YOU – You’re not just a lead, you’re a guest in our home where you can expect Ritz-Carlton level service. We are ladies and gentleman empowering ladies and gentleman with new tools on new platforms backed by market data and facts – good, bad, or ugly.