Economist Comment on Economy
The recent economic downturn – which some people are calling the 'Great Recession' – has affected real estate through unemployment, consumer spending, and retail sales.
In Sun Valley economic ups and downs directly affect tourism here.
Executive Vice President of Zions Bank Michael Morris says “I'd say the tourist industry is actually one of the first that gets hit hard, as discretionary spending goes more towards savings, goes more towards essential purchases and necessities, travel and optional things like that become secondary.”
Morris says there are also a lot of foreclosures on the real estate market right now – which means new home builders, will have to compete with those.
Morris says eventually prices and demand will even up – and we'll all be able to get through this.
“I think lodging numbers are on the way back up, we may have seen the bottom in hospitality. Hotel, motel occupancy rates are on the rise, average daily rates are on the rise, domestic travel's up.”
The president of Zions Bank says that many people have been saving more, which is good – and spending less, which is bad for the economy.
He says that people are still concerned about what's going to happen next.
Will congress renew the tax breaks that are due to expire or will they increase taxes?
Scott Anderson, president of Zions Banks says “But I think the recovery will be slow, the job growth will be slow. The economic growth will be slow, probably less than two percent. So it'll be a slow but continuous recovery.”