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Slow Houston Economic Recovery Predicted


Guest danax

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Guest danax

Bizjournal article

U of H economics professor Barton Smith gave his annual real estate symposium at the Hyatt Regency yesterday and said that the region's growth rate is creeping upwards very slowly and not at the pace that would be expected with $50 per barrel oil prices, indicating that Houston's economy is much less dependent on oil and gas than in the past.

He also expects interest rates to rise to normal levels in the next two years and for a national housing "correction" to eventually lower housing prices nationwide and here in Houston, reducing wealth and spending and increasing foreclosures.

I think the national economy is really going nowhere fast for the next 10-15 years, which is just part of the correction after the big bull market. The bull run lasted about 18 years and we can expect a correction wave of about equal length, which would be until 2018. Real estate should be ok in the long run too. I'm not planning on selling my house for awhile, if ever, so I'm personally not concerned with short term falling prices.

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I think the slowing down is good news. Many projects are predicted steady slow growth which is a much better place to be in.

I think the stock market and many investors learned their lesson from the collapse of the tech market and the accounting scandals.

I think profit reportings will be more on the up and up giving a truer picture of what is really happening. The biggest thing about the bull market and economy during the 90s was that most of it was fake. The value of those stocks didn't represent the companies and money was being generated from nothin.

Now we are seeing a realistic picture. I don't see the economy as slowing down, but returning to normal. The economy moving fast, although its great when you are in on it, is always looking to fall. A steady economy is much more predictable.

The not about the oil industry being not as significant in Houston's economy is good too. We are becoming more diversified.

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