Wendland and Associates - Premiere Ranches and Estates

Uncertainity in the Market for 2008.
Author: Nancy Wendland
Email: nwendland@ktc.com
Apr 29 2008 | Category: Market News

2008 is a very challenging environment for all of us and no one has a crystal ball.  With the political uncertainty in the White House and their opposing views on issues, it is enough to stress us all out.  We also have the volitility in the banking and mortgage sector with underwriting becoming more and more rigid.  The Feds continue to cut the rate, but they need to stop and let the market settle. 

There are several new concepts in vogue like the aggressive cost cutting of medical care, upgrade pre-k education, contradictions of opionion regarding global trade, more regulation in the financial industry, energy conservation "green buildings", renewable energy via carbon tax credits, and last but not least restrain spending. It is called a Balanced Budget.

Ethanol is not working.  The high prices of corn and shortage of wheat have increased demand for productive farmland and have driven  up  prices of many items.  Ethanol is not efficient to produce and will not be cheaper to use. The high gas prices have heavily attributed to the increased cost of production and the rise of food costs to the consumer.

At the moment, the pendulum is swinging to higher interest rates, higher taxes, higher inflation, more regulation, & lower profit margins.  You should protect yourself by purchasing more real estate as it less votile and value doesn't depreciate.  By Spring 2009, we should be realizing some favorable company profits, oil prices will have leveled off, mortgage foreclosure will have peaked, and we should have started to improve greatly.  

The Good News is that Texas is headed for a land boom in the 21st Century.  All indications are that Texas is the state to relocate businesses, personal households, and recreation.  Texas land prices are still below the average for many of the other states along with  no state income tax, strong oil and industry economy, and with limited unions. 

This information was given by Dr. Mark Dotzour from Texas Real Estate Center on the state of the Texas Economy. Nancy Wendland edited and summarized the presentation. For more information go to http://www.recenter.tamu.edu/. On the home page locate Resources, then Presentations, and finally go to 2008 Land Conference in San Antonio.

 

 

 
 
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