In Orlando, approximately 30% of licensed Real Estate Associates will not renew their local board memberships. It is estimated that another 20% will pay late fees. In Osceola County, 20-30% are not likely to renew.

St. Cloud for example has a population of 29,000 people; most of whom work in Orlando but patronize local establishments.   Every service oriented business is reporting a down turn in business.  Because St. Cloud for example, is not a tourist based community, the Mom and Pop service businesses are feeling the pinch.

Gasoline  now costs between 5%-6.6% of an average NET weekly paycheck.  That extra $20 to fill your tank used to be pizza money. Since a salary for the average wage earner will only go so far, the shift of income to essentials takes a big chunk out of what we can spend on incidentals.

Small businesses are reporting a major slow down on the economic front. 

In addition to Realtors,

• Mortgage Brokers (already down in smaller companies by 2/3)
• Title companies
• Home Inspectors
• Appraisers
• Builders
• Construction workers
• Plumbers
• Electricians
• Roofers
• Framers

       The trickle down affects: 

• Auto Sales
• Restaurant owners
• Dry cleaners
• Nail salons
• Barbers
• Dog groomers
• Maid services
• Horse trainers
• Lawn services
• Home repair businesses
• Swimming pool sales
• Hair salons

The ripple effect magnifies exponentially.

Also Nov.1 st the Property tax bills were due in Florida.  Most people saw a rise in Assessed Value which was in some cases was higher than the current Market Value of their homes and if the taxes are tied into the Mortgage payment which is often the case, An increase usually comes out of the disposable income a family once had.

Costs are rising, but income is not. 

To hedge inflation, small business operators are looking closely at their bottom line. Net profit. The money left over after all the expenses are paid.  They are examining their business purchases, and quality of products they purchase with more scrutiny. Expenditures such as advertising, and additional employees are the first places they look to trim fat in a leaner economy.

Perhaps the best reflection of how the local economy is doing is measured by the holiday decorations. For the first time ever, school supplies shared shelf space with Holiday merchandise typically not seen until Halloween. The early push on holiday merchandise, is a clear indicator stores are prolonging the holiday season in an attempt to raise revenue and combat a slow economy.

Purse Money

Our Mothers and Grandmothers had something called "Purse Money"  often it was the left over change they accumulated and saved for something special.  Any additional money they earned out of ordinary income was spending money. This pre-dates many baby boomers, Generation Y and Gen X ers.  But a look to the past may help us better prepare for the future.

Before the double incomes became a standard, it was possible to live on a single income.  Home makers (Domestic engineers) found creative ways to save a little for special things. Bake sales, Yard Sales, and Home based businesses, ironing, sewing, alterations, tutoring and child care. 

Our Grandparents lived through the Great Depression. As things improved, they spent more. Today's generation is a consumer driven one.  They work hard, make money and spend what they make; repeat. Many fail to understand the concept of saving. Doing without, or going without. 

Understanding the basic difference between wants and needs.

A child was asked "Which flavor Milkshake do you need?"  The child responded "I don't need the milkshake. The milkshake is a want.  If we have enough money left over after we eat, chocolate would be nice". 

 Just as there are speed limits, there needs to be spending limits.

As the economy constricts, pinching those pennies will help to make ends meet. More parents are saying "No" to the impulse buys at store check outs. Children are beginning to learn the difference between a want and a need.  

Consumers are price comparing, and checking sale fliers. As the housing market continues to respond to outside pressure,  new building starts have slowed to a crawl, and inventory sell offs are producing incredible incentives and perks to attract buyers, the economy will over time improve.

For those who have managed to save a little, they will benefit a lot in this market.  When home prices rebound, they will achieve huge gains in equity and in the long haul, realize large returns on today's investments.  For people who have had long term home ownership and are now considering downsizing, taking advantage of the equity they have obtained over the course of the last ten to twenty years positions them very well to purchase their next home in this market.