Local economy remains strong

By By Leada Gore, Hartselle Enquirer
In the midst of countrywide financial storms, Hartselle seems to be weathering turbulent times better than many places.
Like much of the Tennessee Valley, Hartselle's economy has remained relatively strong, with local sales taxes expected to increase some $100,000 in the coming year. Morgan County's jobless rate is up from last year, at 4.7 percent in August vs. 3.4 percent in August 2007 but that's still below the state's average jobless rate of 4.9 percent.
And, while housing sales have slowed, local realtors said the city still has a good market.
"Home sales are slower than they were this time last year but they certainly haven't stopped," said Bill Camp of Coldwell Banker Team Hartselle Real Estate. "People are coming to open houses and we have open houses every weekend. People are by and large optimistic about things."
Unlike many areas of the country, Hartselle's average listing price has remained steady and even increased in the last month, up to $200,000 from $197,000, according to real estate statistics. The number of listings did drop, however, from 158 last month to 135 this month.
Slowdowns are also seen in the number of building permits and housing starts. The University of Alabama's Center for Real Estate's latest statistics show fewer are applying for building permits and less construction is under way.
From January to August last year, there were 66 new home building permits in Hartselle. That number fell to 33 this year. The number of housing starts fell, too. From August to May of 2007, construction began on 37 homes. That number fell to 20 this year.
Similar indications can be seen in Priceville.
Priceville saw its number of new home building permits fall from 72 last year to 26 this year and the number of starts from 41 to 14.
David Burleson of Bank Independent said such changes are often seen in fast-growing markets where many of the homes are spec homes, those built without a specific buyer in mind.
Burleson said his bank and many other smaller, independent banks are weathering the storm better than larger institutions.
The county – designated by ACRE as those served through septic tanks in the county – had 67 building permits from January to August 2007 and 41 during the same period of 2008. Actual start dropped from 33 to 22.
Such changes aren't unexpected, Camp said.
"We've been through ups and downs in this business and the good thing about Hartselle is it doesn't experience the so-called "bubble markets" like you see in the rest of the country. When that bubble bursts, it's a bad thing. Our values in Hartselle might be down a bit but for the most part, we expect things to remain stable. That's the good thing about Hartselle and the rest of the Tennessee Valley. We don't always react the same way as the rest of the country."