Economic Glass is Half Full

img style=”padding-right: 10px” src=”http://blog.uvmag.com/wp-content/uploads/2009/03/goodnews_nov_08.jpg” alt=”Good News” align=”left” /> Unless you’ve been hiding out in Timp Cave, you’ve heard that the world economy has been volatile this year.
The media is getting blamed for creating the fear and uncertainty that perpetuates economic challenges.
At Utah Valley Magazine, we would rather be part of the solution.
In this new department, we will point out what’s going RIGHT with our economy. And we didn’t have to search very far.
These local banking, real estate and business gurus share their good news and what we can do to create a long-term healthy economy.

Home sales have increased in Utah County every month since December 2007. Sales continued to climb from a low of 269 in December 2007 to 473 in August 2008 (the most recent month for which information is available). It marks the eighth month in a row of increased sales improvement.

Utah County’s median price for all home types inched up slightly from a year ago. The median sales price in August 2008 was $225,000, up from $215,000 in August 2007.

“Stable prices are important because who wants to buy a home today if it will reduce in value tomorrow?” says Taylor Oldroyd, chief executive officer of the Utah County Association of REALTORS. “Buyers need stability to enter the market and sellers need buyers.”

The Milken Institute recently awarded Provo/Orem first place for “Best Performing Metro Area.” The ranking was based on a stable housing market, strong job growth, wage appreciation and a strong high-tech sector. Other awards include:
• CNBC ranks Utah as having the third strongest overall economy
• The Pew Center names Utah as the best-managed state in the country for 2008
• Forbes places Utah second in the country for its strong business climate
• Ball State University’s Bureau of Business Research ranks Utah second best for manufacturing

Positive outlooks from local leaders

“A struggling economy requires businesses and individuals to innovate and simplify. As consumers, we will benefit from new products with newer features and cost reductions (from efficiencies) as the economy recovers because of the innovations that lean times necessitate.”

Source: Jeff Rust, president of Corporate Alliance in Provo

Low interest rates are available. Rock-bottom rates can be found on various types of loans including mortgage, auto, small business and lines of credit. With low interest rates, families can save thousands of dollars.

Source: Todd Hatfield, assistant vice president of mortgage development at Family First Credit Union

U.S. exports to China have risen roughly 24 percent per year since 2001, making China the fastest growing market for U.S. goods.

Source: Jeff Thredgold, CSP, president of Thredgold Economic Associates

The American economy added 8 million net additional jobs between 2004 and 2007. Although job losses have averaged 66,000 per month in 2008, that is 64 percent fewer than average monthly losses during the 2001 recession.

What can I do to help?

Buy stocks
“This a great time to buy stocks for investors with at least a five-year horizon,” says Dave Young, president of Paragon Wealth Management in Provo.
“These opportunities only come along every few years. As Warren Buffet said recently, ‘Be fearful when others are greedy and greedy when others are fearful.’ Exaggerated concern about the long-term prosperity of the many sound U.S. companies is foolish, and most will probably be setting profit records in years to come.”

Don’t panic
“The economy will take time to work itself out, but don’t let that guide you to make irrational decisions with your money,” says Todd Hatfield, assistant vice president of mortgage development at Family First Credit Union.

Life as usual
“Continue to live your life,” Todd says. “Don’t be afraid to spend money wisely on the things you need.”

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