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Local Economic Challenges, Relative Strength


The Central Texas economy paid its dues in the late 1980s and again in 2001-2002 with the end of the “dot-com” bubble, giving up significant percentages of home values and, particularly six or seven years ago, substantial high-tech employment.  After that last downturn, we entered a new phase of strong but reasonable growth — very different from the “gold-rush” that California, Nevada, Arizona, and Florida experienced.  That allowed our housing market to weather the past couple of years much better than over-inflated metros in those areas.

An article in today’s Austin American-Statesman indicates that we are feeling the nationwide recession nonetheless:

Central Texas job losses are deepest since 2003
Unemployment rate dips slightly to 7.2 percent, still near record levels.
http://www.statesman.com/search/content/business/stories/other/2009/09/19/0919texjobs.html

Year-to-year, Austin’s total employment has clearly moved in the wrong direction, but we actually gained a very modest number of jobs from July to August — almost unique nationally.  Still, Angelos Angelou, well-respected economist and forecaster, says that there is a risk that perceived weakness in our job-creation prospects could slow in-migration and complicate our expected early recovery.

I remain optimistic that we will find 2010 the beginning of a strong new market cycle.  With caution, a variety of local business people offer their similar opinions in this article, also from today’s Austin American-Statesman:

Austin businesspeople look for signs of a rebound:  http://www.statesman.com/business/content/business/stories/other/2009/09/20/0920austinecon.html

I am making a conscious effort to keep from being pollyannish about this, but long experience working here, and my daily exposure to ground-level market forces, lead me to believe that we’ll be just fine.  Look forward to spring and summer 2010.

About Bill Morris, Realtor

Many years of business experience (high tech, client service, business organization and start-up, including 18 years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs. Learn more about my background and experience, my commitment to my clients, my profession, and to the real estate industry at CentralTexasHomeSearch.com.

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