Bill Morris: January 2010

Austin recovery on the way

It seems that I have been talking and blogging forever about the difference between the Austin/Central Texas experience during this recession and the way the recession has impacted other communities.  As I have written several times, most of the really horrible economic news that has dominated press reports over the past couple of years was focused in five states:  California, Nevada, Arizona, Florida, and Michigan.  Michigan's woes really began a few years before, and were certainly compounded in a big way by the 2008/2009 downturn, but the other four states really took the big hit.

Two articles caught my attention today and highlighted that distinction:

Outlook for Austin brightening in 2010

Five cities where homes aren't selling

Austin has been reported for a couple of months to be on the leading edge of this economic recovery, but it's good to see the trend and optimism continuing. 

Perhaps the best news in those articles is the fact that no cities in California appear on this list of five "worst."   Arizona, Nevada, Florida, and Michigan are still prominently featured, however.  I have talked with a client in northern California and another in the Los Angeles area since the 1st of the year, and there is no indication of dramatic improvement in their market areas yet, but they believe the worst of the roller coaster ride may be behind them now.

Employment remains the key area of risk -- in the hardest hit markets and in Austin.  I have written recently about continuing job growth in Austin (albeit slow), so there is reason for optimism here.  Ultimately, however, high unemployment and continuing job losses elsewhere jeopardize the larger economy and will make the recovery longer and harder everywhere.  Jobs --> income --> confidence --> consumer spending --> economic growth.  That formula is still the only path to prosperity.

Bill F. Morris, ABR, CRS, CDPE, e-PRO, MBA
RE/MAX Capital City
Call or Text:       512-785-3345
Toll-Free:           1-800-692-8784, x 162
Email:                 
bmorris@remax.net
Web:                   www.eHomesByMorris.com  

Your personal referrals are the best measure of my success!

Comment balloon 0 commentsBill Morris • January 14 2010 11:42AM
Austin recovery on the way
share
It seems that I have been talking and blogging forever about the difference between the Austin/Central Texas experience during this recession and the way the recession has impacted other communities. As I have written several times, most of the… more
Ken Kesey's bus and Eeyore, too!
share
Locals know that "Keep Austin Weird" is more than a slogan. It actually began years ago as a campaign to support local merchants instead of the chain stores they compete with. Over time, the slogan has become a lifestyle: Two men… more
More confidence in Austin
share
I wrote last week ( Austin Commercial Real Estate On The Way To Recovery ) about several positive developments in the Austin commercial real estate market. I just added two new articles to www. AustinMarketInfo. com today: Hanger Orthopedics… more
Everybody wants a "good deal"
share
I get calls regularly from prospective homebuyers who begin by saying, "I'm interested in foreclosed properties. " A couple of questions later, that translates into, "I want to get a good… more
"Form" over substance -- not a market solution
share
SmartMoney. com published New Rules Help Borrowers at Closing today. The gist of the article is that as of January 1, 2010 mortgage lenders are required to use a new form when providing their prospective borrowers a Good Faith… more