Intero Real Estate Services-Hollister warmly welcomed real estate consultant and motivator Carole Rondoni for an economic forecast that made every attendant eagerly listen to every word muttered for the two hour presentation. After an overview of the last 10 years of the real estate peak and valley, Carole covered the top issues that are creating a slower recovery.
Within the US economy there are other smaller economies that are having different issues:
Big Companies-Doing great and continuing with business as usual like: Walmart, GE, and other energy efficient companies. They can even eat up all the competition.
Small Businesses-Possibly new tax rates are delaying entrepreneurs decisions on starting new companies. With health care and insurance on the rise, a businessman may not see a profit in their new idea.
Consumers use Caution due to unemployment-The unemployment rate is still at one of its worst, even thought the media pushes that it is getting better. In Hollister, we face about 20% unemployment rates while California at a whole is about 30%. Until more jobs are created, people will not me spending money like anything close to the past. A healthy unemployment rate would be about 6-7%.
When Carole tapped on the type of real estate market, she said that things are no longer black and white. Depending on where you fall in the real estate spectrum: selling a home as a short sale, looking for an investment piece, buying a home for the first time, a Realtor can no longer present a script. People in the real estate market are faced with different competitors, so the hardest part is finding out where a buyer or sellers falls to get the most beneficial outcome.
An interesting point Carole stated was the fact that lenders are allowed to write off assets in their possession. With every foreclosure they posses and hold onto, no only can a lender re-sell at market value, but the lenders (Wells Fargo, Wachovia, Bank of America etc.) can write off the debt at tax time.
With all this wonderful knowledge I cannot wait to see her again at the San Benito County Association of Realtor meeting as well as another Intero meeting next month.