I did not attend the Perryman economic forecast yesterday, but I do have some thoughts on aspects of the forecast reported on KXAN.
1) “Area’s economy will get worse before it gets better.” I agree generally. I talk to business owners around town all the time. Times are pretty tough, and lower revenues lead to lower profits lead to lower spending which is a negative cycle. People are tight with their money right now. I think once it is clear that the investment markets globally have carved out a bottom, the collective psyche will start to change. Austin will bounce back alot faster than other places, I think. Buying local keeps money home, which should exponentially speed recovery.
2) By 2013, Perryman “expects to see improvements in the housing market.” Are you crazy??? I don’t think it will take that long. We have seen a considerable drop in transactions in Q4 and a slight softness in pricing values; however, talk to any experienced Realtor, lender or title company and they will all tell you that the new year has brought a renewed level of activity in the real estate business. Homes that have sat for almost a year are starting to sell, and others are getting showings and interest. The pent-up demand buyers that are waiting for a bottom might miss out because history tells us when markets turn, they turn fast.
3) “Austin’s personality is key to its growth and economic potential”. 100% agree. That’s why I stay here. Austin is one-of-a-kind. People are still moving here every day. I meet 10X the number of people moving in as moving out. The real estate business is in the forefront of those trends. Just like the UHaul companies. The successful home sellers in this market are also realizing this truth. Their home and neighborhood’s personality is key to maximizing their sales price (and chances of getting sold).
Town Lake Living Blog 