A new report suggests that Mississippi may be one of 11 states that have already begun to pull out of the recession, but many Leflore County and state officials are still reluctant to pronounce the end of the recession.
The report from from Moody’s Economy, a private analytical firm, points out Mississippi’s strengths, such as a low exposure to debt on household income sheets, attractive location for industry, strong trade links and tourism. Among the state’s weaknesses are low educational attainment and a lower per capita income.
Sam Abraham, Leflore County chancery clerk, said he is skeptical that the recession will end soon.
“I think some of our more populated areas might be pulling out of the recession,” Abraham said, “but the Delta is still deep in it.”
Abraham said it was good that other areas are rebounding, but the news will bring little comfort to the Delta.
“If you’re unemployed, it doesn’t matter if everyone else is coming out of the recession,” Abraham said. “Mississippi is coming out sporadically in areas. It may be a while before we see it end.”
Phil Pepper, state economist, told legislative leaders and Gov. Haley Barbour on Thursday that the state should not expect significant improvement until the second half of next year. Barbour was less optimistic.
According to the Memphis Commercial Appeal, Barbour said he was not convinced “that fiscal year 2011 will be better than fiscal year 2010.” He said a lack of growth in state sales and income taxes, a high unemployment rate, credit card debt and people using equity in their homes to get cash made the outlook on the future of the economy appear bleak.
Sales volume of the Multiple Listing Service, a service used by most area real estate agencies in Leflore, Carroll and part of Tallahatchie counties, reported an increase in sales through Nov. 6 from $15.9 million in 2008 to $16 million in 2009.
Greenwood Realtor Betty DuBard of DuBard Realty said the number had not increased much, but it was a sign of a turnaround because much of that sales volume had occurred in the past few months. The figure had dropped from $22.4 million in 2006.
“There has been some increased activity in the past few months, a lot of it in the $150,000 to $300,000 range,” DuBard said.
She said housing values have, for the most part, neither appreciated or depreciated but instead remained stable. She said only a few properties had depreciated in value.
Ron Dubard, also of DuBard Realty, said the area was not as unfortunate as many communities had been across the nation.
“We’re lucky in this local area not to have the high number of foreclosures as other areas,” he said. “We’ve had some, but not the mass amount that would hurt the value of real property.”
She added that the area’s central location for industry has also assisted the local economy.
Ronnie Roberston, chairman of the Greenwood-Leflore Industrial Board, said there are a lot of reasons industry could be attracted to the area, including water availability, multiple modes of transportation, workforce resources and low operating expenses.
“We are certainly in a lot better shape than other parts of the nation,” Robertson said.
He added that with so many different reports released so often, many with conflicting results, it’s hard to tell if the recession is ending anytime soon. Robertson said it was important to stay alert to be able to take advantage of the recovery.
“You have to be ready for when it turns around,” he said. “You have to keep your resources in mind, membership intact and not let your guard down. You have to be prepared to take the opportunity when it is available.”
A report released on the impact of tourism in the fiscal year 2007 by VisitMississippi.org found that 4.6 percent or about 685 jobs in Leflore County were in the tourism industry. Statewide, about 6.7 percent of the state was employed by tourism in 2007. The tourism industry was ranked sixth in the amount of jobs it provides citizens.
Betty DuBard said tourism as well as the nature of Greenwood itself has given the area an edge over some communities.
“Greenwood kind of sells itself,” she said. “We have the hospital, Viking Range, a lot of district offices and a lot more. It’s a central location for a variety of reasons.”
She cited the multiple tourism destinations in the areas as selling points she uses to market Greenwood homes. Dubard said a new piece of legislation that allows a current homeowner to take advantage of tax breaks as well as first time buyers could spark even more activity in the housing market.
“I feel like the economy, the overall economy here, is going to slowly start seeing more economic growth,” she said.
Moody’s report also claims the national recession has ended, although the National Bureau of Economic Research has not yet announced any indications of the end of recession.
