June Grace Properties
July 3rd, 2011Grace Properties Real Estate News
June 13th 2011
Double Dip
Recently there has been much talk about a double dip in the economy. According to the Wall Street Journal this recession started in December 2007 and ended June 2009. The economists may be able to point to specifics to support this but to everyday Americans we are far from recovery and out of recessionary times. Will the economy dip again? Most hold that though there are formidable obstacles that exist we have been through the worst but the climb back to normalcy will be slow and at times agonizing. The traumatic effects of government cutbacks at all levels have yet to be felt.
Unemployment vs. Underemployment
With unemployment in California over 9% for April there is no escaping the effects of eligible workers out of work. Perhaps just as nefarious is underemployment-people working but in jobs way below their qualifications. Hardest hit may be the folks in the over 55 bracket who retired early only to see their nest egg ravaged and needed to get back into the work force. Lack of jobs, age and perhaps in many cases an antiquated set of skills needed to navigate these economic times all combine to make The lingering result of this recession may be the long-term displacement of Americans in jobs they are over-qualified for and are unable to move out of. I have read in a variety of publications that many well-paying jobs that existed prior to the recession will never be filled again. People working multiple jobs to meet living expenses added to the fact many of these jobs are temporary exacerbates an already difficult situation. Training and retraining will be critical to the workforce recovery and, perhaps in a larger sense, the ability of America to compete world-wide.
Housing
Nothing really new here: low interest rates, oversupply of resales, lowest new home starts in 30 plus years. The short sale activity is increasing and agents are seeing better results/cooperation from lenders-and timeframes are lessening. The mood is cautiously optimistic. The real estate community would love to see more first-time buyers entering the market. There have been many comparisons to renting and it is simply an individual decision. A much disciplined buyer might be better off renting but owning one’s own home is intrinsic to the American Dream. Jobs and consumer confidence is always critical. It remains a great time to buy a home regardless of what price range.
Sonoma County
The average price in Sonoma County for 2011 sales is $368,000 averaging 1715sf and 3 months on the market. Santa Rosa sales mirror these figures with $340,000 1705sf and also 3 months on the market. The toughest part of the market is still the $700,000 to $999,000… This market segment has over 13 months inventory at this time. As stated before there is just too much home available in the $500,000 to $690,000’s so the price pressure is immense.
One Last Thought
We are fortunate to live in a beautiful county. We have been hard-hit by the recession and major corrections have been made in the local economy. We will continue to attract top talent in our workforce both public and private and we will come out of this. In the meantime housing is very affordable by historical standards and opportunities do exist. Call me (579-9540) if you have any questions. Have a great summer…it is finally here.
Mike Grace, Broker
Grace Properties
1258 Parsons Dry
Santa Rosa, CA 95404
707-579-9540
mgrace@sonic.net