Today I heard a great speaker on the topic The Economy, Housing Market, Future Prospects.

Jim Gaines, the Research Economist with the Real Estate Center at A&M  in Texas

He had great data on the credit contraction, asset deflation, household wealth devastation, unemployment, GDP,Corporate profits.

When will the recession end, has it bottomed out, what is holding up recovery (savings rate is up to 5-7%, inability of big banks to lend credit, unemployment stabilization .

Then Dr Gaines spoke about the TEXAS OUTLOOK for 2009-2010 and that was much more optimistic  and AUSTIN OUTLOOK in particular.

-Foreclosures :  2/3 of all are in 7 states California, Nevada, Arizona, Florida, Michigan, Georgia, and Mass.

However the excellent news is,

"Probably never again in your lifetime will you find low home prices and low mortgage rates right now and for the next 6 to 9 to 12 months.  It is the “combination” of low prices and low rates, of course, that we won’t see again."  Jim Gaines Ph. D., Economist with Texas A&M Real Estate Center

Austin MSA population will double from 2008 to 2030  from 1.6million to 3.0 - 3.4 million based on inmigration models.  Where will we house about 1,400,000 more people?

Supply/demand economics tell me that owning residential real estate in Austin makes sense.

Here is the LINK  from Dr Gaines economic forecast presentation yesterday

 2009 Austin Realty Round Up