Real Estate Blog

As we're ticking down toward Christmas, and no doubt all running around like headless chickens, first, Happy Holidays to you all!

 

Second, I want to give you a gift -- some numbers. Yep. Numbers that suggest where the economy is headed in 2011. A group of economists from various universities delivered these predictions as part of the Chamber's annual Economic Forecast.

 

The group included Dr. Thomas R. Saving, Texas A&M University; Dr. Stephen Gardner, Baylor University; Dr. Thomas W. Gilligan, The University of Texas at Austin; and Dr. James LeSage, Texas State University. (Dr. Saving wasn't able to attend in person, so his numbers are given separately.)

 

And here's what they had to say:

 

- GDP Growth Rate: most forecast a slight increase between 2.7 and 3%, with Dr. Saving higher at 5.4%.

 

- Inflation Rate: most forecast at 1.3%. Saving was again higher at 4.5%.

 

- Prime Interest Rate: agreed by all to remain between the current 3.25 and 4%.

 

- 30-Year Fixed Mortgage Rate: agreed to be somewhat higher than this year, between 4.8 and 5.5%.

 

- Austin Job Growth: forecast to grow by 2.6% by most, with Dr. Saving forecasting job growth to be 6%.

 

- Texas Job Growth: forecast at 2% growth by most, with Dr. Saving at 4.5%.

 

The Chamber will track the progress on each indicator and award a scholarship at the end of November 2011 to the university whose economist gave the most accurate forecast.

 

All in all, I'd say things are looking good, definitely headed in the right direction, definitely headed up for real estate investing.

 

Sorry I didn't have time to wrap that all up and get it under your tree, but you know, headless chickens and all . . .