In the past few weeks, there have been many discussions regarding recession, real estate, stocks, et al. I was curious as to what the hysteria was all about. As a real estate agent, I had to know the true facts since the news essentially affects my business.
On Neil Cavuto of “Cavuto on Business”, Fox News, reported that of the total number of homeowners, the percentage of sub-prime is guess what? Only 0.06% This is a minuscule number and so, I do not see the relevance of recession, bailing homeowners out of sub-prime, etc. Why you ask? Because the rest of us, the 99.94% of homeowners, do remit payment in a timely manner and as such, is carrying the rest of the economy. Compound the mortgage industry with the advent of toll roads, more businesses, and more real estate, the market here in Central Texas is strong.
In downtown Austin alone, there are eighteen (18) planned projects of condos. In addition, there are seven (7) under construction. What does these condos reverberate? Jobs, investment, profit, home ownership, pride and everything else that entails ownership and business. Moreover, businesses here continue to thrive.
Just to name a few businesses that joined Central Texas: Round Rock Outlet, Scott-N-White, Texas A&M Medical School, call centers, and more medical and technological fields, such as, but not limited to: Cedar Park Regional Medical Center, Fresenius Medical Care of Cedar Park, DaVita kidney dialysis, Whitestone Medical Pavilion, and 1890 Ranch which features Super Target, Office Max, PetSmart, Circuit City, Ross, Chick-Fil-A, Wachovia, Gold’s Gym, Starbucks, Massage Envy, Cinemark Theater, Mattress Firm, FedEx Kinko’s, Great Haircuts, GNC and so forth. Thus, the pending question I ask is, “what recession?”
With the fed’s reduction rate of 50 base points, now is the time to buy homes, commercial properties, second homes, buy businesses, etc. Rates are still historically low. Guess what they were in the 70’s, 80’s?? 17-20%. The housing market is not an exclusive commodity that sustains the economy, there are other services/commodities out there that assist with our growing economy.
GM stocks jumped, Imclone Sytems jumped. I strongly encourage everyone to do their due diligence prior to drawing any conclusion about what the medium reports. I do not foresee any recession due to the thriving economy. I just had to include my two cents on the topics described above and to somehow dispel some of the ongoing rumor of recession and the real estate market going sour. Again I ask, what recession?
;)
Links;)
Tags (Tag Cloud);)
Archives
