There has been a lot of “press” lately suggesting the recession is over, the implication being good times are just around the corner. Common sense and a stroll in the real world confirm that this notion, although perhaps technically accurate, is absolute madness.
Speaking specifically about the real estate industry at a recent conference Dr. Mark Dotzour, the chief economist for The Real Estate Center at Texas A&M University had this to say …..
"The health of the residential and commercial real estate industries depends not on gross domestic product (GDP), but on job growth" He added, "When the economy (i.e. GDP) grows by, say, 3 percent, but productivity also grows by 3 percent, it just means that currently employed workers produced 3 percent more things. Job growth is the essential engine of growth in this country. Until we start producing jobs, it's premature to say we are out of the recession."
We’ll keep working for the kind of change that’s necessary to return to a healthy housing market, but in all honesty, it’s going to be quite a while.
.....blogging from Kingwood, TX
