Despite declining values in the housing construction, home sales and consumer spending markets, Waco hopes to increase its economic growth after reaching its lowest point since 2007 in February 2010, according to a report from Wednesday’s Economic Index Media Conference.
Representatives from the Waco real estate and construction industries attended the news conference hosted by the First National Bank of Central Texas and the Waco Tribune-Herald in order to receive an updated economic report compiled by Karr Ingham, a professional economist and owner of Ingham Economic Reporting.
Although Ingham was not present to introduce his findings, Sarah Roberts, senior vice president of economic development for the Greater Waco Chamber of Commerce, summarized the report and moderated discussion among participants.
Waco officially entered its recession in September 2008 and saw a 6.3 percent economic decline until February 2010, Roberts said. Since then, Waco has steadily moved out of its recession.
However, last month Waco experienced a 0.6 percent decline because of a fall in the value of building permits. This drop signifies a lower number of work projects requiring permits within the industrial and medical sectors.
Roberts reassured participants with Ingham’s economic analysis, which states that “the decline in 2010 is not terribly surprising in light of the strong growth in 2008 and 2009, which would suggest a natural cyclical retreat, in addition to the generally sluggish condition of the Waco economy.”
The banking industry remains optimistic about the decline and is waiting for the market to reach a steady level of improvement.
“From a banking standpoint we feel optimistic, and most builders seem to think things are moving well and they feel that a lot of positive things are happening for Waco,” Monte Hulse, chairman of the board for the First National Bank of Central Texas, said.
Kathy Schroeder, vice president of residential services at Coldwell Banker Jim Stewart, Realtors, also remains positive about the decline and said she already sees higher sales in the real estate area. Sales are expected to increase during the winter months as more people decide to “nest” in Waco, Schroeder said.
When asked if the Greater Downtown Waco Master Plan will aid future economic growth, Roberts said that although the plan will help in the long-term growth of the economy, it will not make a significant difference within the next few months.
“We expect permit values to increase with the master plan within the next five years,” Roberts said.
The First National Bank of Central Texas and the Waco Tribune-Herald plan to continue holding these monthly economic updates, which serve to inform the affected economic sectors of the community as well as the community itself.
“We are really pleased to be able to do this with the Waco Tribune-Herald,” Hulse said.
“We are excited to do this, and as we get into it we hope it will make us more educated and feel good or be concerned, and to do something about it.”