Austin 2009 Economic Forecast

One of the things I love about Austin REAL Pros is our brokers' dedication to providing resources and opportunities for all of the agents. Not only does it help us all stay on the cutting edge of our own real estate practices, it builds an incredible sense of camaraderie and togetherness....kind of family like even.

Today the gang all headed to the Austin Renaissance Hotel to attend the 2009 Economic Forecast hosted by the Austin Board of REALTORS® and the Austin Homebuilders Association. After a very tasty breakfast we heard Jay Gohil, 2009 Chairman of the Board of the Austin Board of REALTORS®; Wes Peoples, 2009 President of the Austin Home Builders Association; Derrick Jones, Broker at Austin City Living; Charles Porter, past Chairman of the Austin Board of REALTORS®; Eldon Rude, Director of the Austin Market Metrostudy; and Jon Hockenyos, President of Texas Perspectives give assessments of the Central Texas (Austin and surrounding communities) economies from their individual business perspectives.

In addition to many of the leading agents, brokers and builders in the area, we were joined by State Representatives Mark Strama and Donna Howard, and Austin City Councilwoman Laura Morrison.

In four hours these industry leaders shared way too much information for me to convey to you in a detailed fashion here. However, there were a few vital notes to share...

- The National Homebuilders are working on a project called "Save Housing First" intended to aid in kicking the national economy back into gear by focusing resources toward homeowners, including extending the current $7500 tax credit to buyers, expanding the credit to all buyers from just new buyers as it is now, providing fixed rate mortgage programs of 2.99% (Until June 30, 2009) and 3.99% (from July 1 to December 31, 2009). The plan would cost around 100 billion dollars over ten years.

- While many of our sister cities around the country are suffering from net job loss, Central Texas added between 12 and 13,000 new jobs in 2008. Just this week, there were three teams from the Austin Chamber of Commerce working with prospects to relocate their business to our area, with a goal of adding 21,000 new jobs in 2009.

- New economic information shows that we have been in a recession since December 2007. While that isn't terribly exciting news, the good thing is we're already just over a year into this, and we will likely begin a slow recovery within the next year.

- While appreciation in Austin has slowed, it has not yet stopped. That means while we are experiencing an increase in home inventory, prices have not yet started falling. Compared with the rest of the country, this is fantastic. Be prepared for that to change slightly in 2009. Additionally, Austin's available home inventory is 50% what is is in our sister cities.

- The Central Texas population increased by approximately 250,000 residents between 200 and 2007.

- Finally, Jon Hockenyos wrapped things up in just a few lines. You know me - that brought a huge smile to my face and I was thinking how funny it was that four hours were pretty much summed up in a few words...

...2009 will be slightly worse than 2008. 2010 will be better than 2009. 2008 was better than 1987 (the last major slowdown in Austin), and can be compared to the .com bubble we most recently experienced. 2010 will bring us back to the upswings of the 1988 recovery and we will then continue positive movement.

If you're interested in more of the information from the forecast, just let me know and I'll be happy to email you a copy of the charts that help illustrate these points.

The bottom line here? While things aren't fantastic they're pretty stinkin good. This is a great time to buy property in Central Texas. For any of you who have thought, as I have..."Man, I wish I had taken advantage of the opportunities in 19XX so I could be reaping the benefits now"... NOW is the time to do something! Give me a call, let's talk!