An economic slowdown is affecting many states. Are there any signs of a slowdown in Houston?

[davidt1]

Originally Posted by Saintmarks

Yes, the financiers are tightening the belt. We have been told to push cash down with our customers, most have gotten in the mindset to get a car with nothing down, but if we submit a deal for someone with less than perfect credit, the more cash down, the better the deal is to get approved.

However, I feel the current slow down is not that people can't get approved, but that most people are putting off any major purchase until public confidence settles down. I am hearing this from those I know in the furniture business, the electronics business, any kind of big ticket item.

I think that once the election is over we will see some relief. It doesn't really matter who wins, just that it will be over. I think (and this is just my opinion) that the powers that be are highlighting and over talking the poor economy for personal political gain. I think this is happening to some extents on both sides of the aisle. It seems to happen every four years around this time.

However, I and many like me are month to month. If things are horrible this month even IF they get better next month, we are in danger of going down the tubes. I am a divorced man in my 40s and am looking into the real possibility that I might have to move in with my elderly mother. Can't tell you what a bruising to my self esteem that thought is.

Hope things get better for you. I like your honesty.

[EasilyAmused]

Doin' fine here. Going to make a profit again on a resale in Briargrove. Bought a cabin in NE Texas and remodeling away on it, and have just complete a remodel on my new digs in Memorial. Which apparently I got at tear down prices from what's going on around here.

[JDB3030]

I am one of those who moved here recently for a job (somewhat oil related). I had another job lined up on the east coast but the company is falling apart. I had multiple offers in Houston so I decided to move here. I would say most of Houston's job markets are booming. On the other hand, credit has been hit hard everywhere. Saintmarks, I bought one of those Hondas this summer. However, my auto loan rate reflected the credit problems we are facing. Almost 9%.

[astrohip]

Originally Posted by Zhang Fei

Some of the signs of recession include sharply lower sales tax receipts in Florida and California. Nationally, mid-range retailers have, almost across the board, reported lower same-store sales. What's your take? Have you heard of lay-offs? Have your friends or relatives been affected? In what sector?

There are definite signs of a slowdown in Houston. Take new home sales: They are off by 50%+ from two years ago. Yes, 50%+. Our area had 50,000 starts in 2006, and will be lucky to hit 20-25K this year. That has led to massive layoffs in every related business--builders have let people go (or gone broke--Royce, Kimball Hill, etc), suppliers have downsized, and many many subs are out of work. Since many subs are transient by nature (or illegal immigrants), a great number have simply moved elsewhere, or returned to their native countries.

Next: car sales--off by quite a bit. Don't have figures, but you are seeing some closures (Bill Heard), and others are letting people go left & right.

Banks--'nuff said.

I could go on, but the point is, while Houston is not ailing as bad as some areas, we are definitely feeling the pain. And Ike didn't help (except for isolated cases).

[Zhang Fei]

Not sure if this will eventually affect Houston, but the Federal Reserve notes that the national economy had begun slowing prior to the recent financial panic:

Economic activity had shown signs of decelerating even before the recent upsurge in financial-market tensions. As has been the case for some time, the housing market continues to be a primary source of weakness in the real economy as well as in the financial markets. However, the slowdown in economic activity has spread outside the housing sector. Private payrolls have continued to contract, and the declines in employment, together with earlier increases in food and energy prices, have eroded the purchasing power of households. This sluggishness of real incomes, together with tighter credit and declining household wealth, is now showing through more clearly to consumer spending. Indeed, since May, real consumer outlays have contracted significantly. Meanwhile, in the business sector, worsening sales prospects and a heightened sense of uncertainty have begun to weigh more heavily on investment spending as well.

The intensification of financial turmoil and the further impairment of the functioning of credit markets seem likely to increase the restraint on economic activity in the period ahead. Even households with good credit histories are now facing difficulties obtaining mortgage loans or home equity lines of credit. Banks are also reducing credit card limits, and denial rates on automobile loan applications reportedly are rising. Businesses, too, are confronting diminished access to credit. For example, disruptions in the commercial paper market and tightening of bank lending standards have made it more difficult for businesses to obtain the working capital they need to meet everyday operating expenses such as payrolls and inventories.