As we ring in the New Year with champagne and fireworks, we can’t help but wonder what the year will actually bring us. Could the economy take a turn for the better? Will the string of bankruptcies finally slow? What will happen to the almighty dollar? While even analysts merely make educated predictions about the economy, we decided to take a stab at what 2012 will have in store for Texas.
First off, population growth hasn’t looked promising for Texas, as reported by the Census Bureau. Texas has typically seen a 2.1% annual growth rate for the past decade and 2010-2011 brought only 1.7%. Population growth has been an essential factor in Texas’ economy. Immigration has slowed for all of the U.S. as unemployment discourages relocation. As long as Texas can hold up compared to other states, the slip shouldn’t affect the economy too terribly.
What about the housing market? Ted Wilson of Residential Strategies believes “There’s a consensus that the worst is behind us, but nobody expects a V-shaped recovery.” Simply put, houses in north Texas have seemed to already hit their bottom, but it’s still unclear when the market will fully turn around. Housing starts, the number of privately owned new houses that are being built during a certain period of time, are very telling of the current housing market. Housing starts were close to 50,000 in 2006 and are now around 14,000. Some analysts project a 15% increase for 2012, which shows a significant boost in the market. Interest rates remain at record-lows and Texas’ population is still growing, which are promising factors for real estate. One of the best indicators of a real estate turnaround is the growing confidence of potential homebuyers. It’s understandable that many people have lost confidence in the real estate market, especially if they bought at the top of the market. Now that many current and former homeowners can see how cyclical the market is, they may be more willing to get in while real estate is near the bottom.
Lastly we look at American Airlines Reorganization. The airline giant is a subsidiary of the AMR Corporation, and is headquartered in Fort Worth, Texas. If American Airlines can continue to reorganize quickly and work out contracts with their labor unions, the bankruptcy shouldn’t have too much of an impact on Texas’ economy. If American can’t work out its contracts and agreements with creditors, the delayed bankruptcy is sure to have a serious effect on Fort Worth. For more financial news and information, visit our San Antonio bankruptcy attorney blog at Davis Law.
About the Author: Jeff Davis is the Owner of the Davis law firm and a highly experienced San Antonio bankruptcy attorney. To find out more information about a San Antonio bankruptcy lawyer, please visit www.jeffdavislawfirm.com.