How would TPP impact Texas?

Are you down with TPP? While the Trans-Pacific Partnership has gained attention by becoming a talking point for presidential candidates, it’s sometimes hard to know what impact such an agreement would have here in North Texas. But it’s important that we try. The economy in North Texas is quickly becoming one with an international focus. And, with the real estate market so dependent on the local economy, it’s important for Realtors to understand the pros and cons of TPP and its potential impact on Texans. Learn about TPP and make your voice heard in November.

Whether or not you support increasing free trade, there is no disputing that the countries involved in TPP are already important to Texas’s exporters. The Department of Commerce notes that last year Texas exported nearly $140 billion in goods to Japan, Malaysia and Vietnam alone. In fact, 55 percent of Texas exports went to TPP countries, from nearly 20,000 companies. Most of these companies were small to medium sized businesses. These businesses would no doubt benefit from the elimination of foreign import taxes. The elimination of these taxes would reduce the cost to their buyers– by an estimated 25 to 59 percent in many cases.

Economists and business leaders point to these cost savings as having the potential for creating more jobs and faster, more economical trade. They also believe that the elimination of restrictions on trade could have big beneficial impacts on agriculture and in the service industry.

The controversy over TPP begins with a lot of unanswered questions. Because governments are eager to create more open trade, they are negotiating most of the partnership details out of the public eye. Activists opposed to eliminating trade barriers are concerned that a variety of protections currently in place will be eliminated. For instance, it is unknown whether the TPP will include labor standards based on current international conventions or how such standards will be enforced. Similar standards in place to protect the environment and public interest policies might also be impacted. Further, activists want assurances that access to affordable generic versions of medications will be protected. Agricultural experts want to know that farm workers are protected and that dumping of crops won’t force family farmers out of business.

Texas businesses stand to benefit greatly if the TPP is passed in some version. With our strong economy ready to do business with the world, it could be a great time to be a Texan. But with so many unanswered questions and concerns, no one can say for sure that this massive trade agreement would be a panacea to struggling global economy, or its greatest folly.

Hear from both sides of the TPP feud. For local interpretations of TPP’s impact on Texas, visit http://trade.gov/fta/tpp/states/texas.asp to see the government’s official stance, pr listen to the Texas Standard interview with Raymond Robertson, a professor of economics and government at the Bush School at Texas A&M. For a more general explanation, listen to What is TPP and why are both parties so angry about it? from PRI. Then decide for yourself.

And, don’t forget to vote in November. 

Listen to your FOMO: Register today for Forecast 2017 and you won’t miss a thing!

You’re a REALTOR, and you know that our local economy is critical to the ebbs and flows of your business. Prepare yourself for changing market conditions in 2017 by attending our perennial favorite Forecast event. Forces Shaping Tomorrow’s Economy will consider the DFW economy from many angles.

Will there be housing for all? With the rise in median prices quickly outpacing income levels, the ability to obtain housing is becoming increasingly difficult for hard-working families. Did you know that in Dallas, the median household income is $50,118? That equates to a home purchase price of less than $200,000 for the average buyer, a prospect that is becoming increasingly difficult. Join us as we welcome Bill Hall, CEO Dallas Area Habitat for Humanity to discuss the housing needs in this area and what is being done to ensure safe, affordable housing for all.

What about the economy? The DFW area is experiencing tremendous growth in business and in population. What lies ahead and what factors will influence our future economy? Jonathan Smoke, Chief Economist realtor.com will be here to address the dynamics of the North Texas economy.

Who needs Houston? With the rapid expansion and development of Texas on the whole, it’s no surprise that the triangle formed by San Antonio, Houston and DFW is quickly becoming a vital part of the nation’s economy. Meet David Winans, author of Texaplex and listen to what he has to say about the vibrant, vital and interdependent Texaplex economy. (For a video previewing his book ,visit https://youtu.be/FC16-4fh-Qc).

What will the real estate market do? The always popular Dr. Jim Gaines, CEO Real Estate Center at Texas A&M will be discussing future real estate trends for Texas as a whole and North Texas in particular. Know the current market and what to expect in the coming years.

Friday, October 21, 2016 at the Marriott Las Colinas from 8:30 – 12:00. Includes continental breakfast and 3 hours CE credit. $35 for members and $45 for non-members. Register today at mymetrotex.com or call our Professional Development Dept. at 214-540-2751

How about that Texas Market?

How long will this booming market last? Are we in a bubble? Is it a good time to buy or sell? These are questions we are all hearing a lot these days. Unfortunately, we haven’t been able to find a working crystal ball anywhere in the Metroplex. However, we do have something better. Hard data from the experts. The folks at the Texas A&M Real Estate Center regularly publish data about the Texas economy. Here are the highlights from their latest report, boiled down to facts you can use when answering questions from the public.

The Texas economy is robust. Employment is the state is strong and growing. More people are re-entering the job market. The biggest gains in employment recently have been in the services sectors, (financial services, education, health services, professional and business services) as well as in trade, leisure, and hospitality. Analyses of the business cycle and current economic activity point to positive trends in the state.

Texas housing sales appear to be accelerating. Demand for housing is strong in most areas, although Houston is lagging somewhat. Across the state, housing sales increased 7.8 percent in April. Austin, Dallas-Fort Worth, and San Antonio all experienced an increase in sales. Houston dropped 0.2 percent as the impact of the energy sector decline plays out in the Houston economy.

Home building activity is brisk. Houston and Dallas-Fort Worth led the nation in the number of single-family permits issued followed by Atlanta, Phoenix, and Austin in April. That said, Dallas-Fort Worth issued fewer permits than its peak rate in December 2015.

Inventory of available housing is low. Dallas-Fort Worth inventory levels were estimated at 2.2 months in both April and May, compared to 3.7 months statewide, and 5.6 months nationwide. Low inventory levels are contributing to rapid price growth in housing.

Incomes are not following pace with the housing price increase. In the Dallas-Fort Worth area, real earning levels have not increased above January 2007 levels.