Midland economy shows big gains

MIDLAND – The Midland-Odessa Regional Economic Index posted a 13.9 percent gain in third quarter 2012 compared to 3Q 2011, according to Karr Ingham, the Amarillo economist who prepares the index.

The index grew 2.9 percent during 3Q 2012 and 9.5 percent during the first nine months of the year, recording its 31st consecutive month of expansion. The index has risen about 40 percent from the trough reached in February 2010 through September 2012.

Consumer spending remained impressive, with sales tax receipts climbing 19 percent compared to 3Q 2011, while 3Q 2012 spending on automobiles rose 20.7 percent compared 3Q 2011.

The $250 million in building permits issued in the third quarter is the highest permit valuation for a single quarter on record — except for 1Q 2011 when a power plant was permitted in Odessa — and is up more than 60 percent compared to 3Q 2011, which was up by 178 percent compared to 3Q 2010.

The 271 new housing construction permits issued by Midland and Odessa in 3Q 2012 is the highest third quarter total on record and it is the third-highest total for any quarter, behind only 1Q and 2Q 2012, with 283 and 301 permits, respectively.

Existing home sales were up by more than 11 percent for 3Q 2012 (year over year) and more than 10 percent for the year to date.

Prices remain the remarkable story; however, with 3Q 2012 average in Midland and Odessa combined surpassing $200,000 for the third straight quarter. The 3Q 2012 average is up by 6.5 percent compared to 3Q 2011, and the year-to-date average is up by 9.2 percent through September.