When the economy fails to grow for two or more successive quarters, the economy is said to be in a recession.  When home prices revert to previous lower levels the term is called regression.  The housing market price structure is now at the levels last seen in 2004.   It is now possible to buy homes which were once out of reach- in essence the value of your housing dollars is worth more today than it was five years ago.

As nervous consumers watch the market and weigh their options, and unemployment continues to grow (in Florida now at 7.1% and projected to reach 8.3% by the end of the year) there will always be a need for housing. 

HOW BAD NEWS IS GOOD NEWS

Prices will reflect the economic climate.  While it is true that unemployment is rising, and demand for benefits has increased proportionately- it is also important to remember that economic recovery is dependent on the public recirculating their dollars.  

When the economy constricts often it impacts those businesses which were under funded first.  Most new entrepeuners fail to embark on a business venture with sufficient capital to sustain them for the first and highest risk year.  Any new enterprise requires start up costs- these costs are frequently under estimated by business owners.  As a result, the business will fail to thrive. The lack of "reserves" is most often the culprit.

UNDERSTANDING HOW BUSINESSES ARE ALL INTEGRATED

       Much like the links on a chain, business are intertwined.

       During the Real Estate boom, related businesses thrived.

       Job opportunities were created as Osceola County experienced unprecedented growth.  Land clearing, septic systems, carpenters, framers, roofers, plumbers and electricians, HVAC contractors, and Realtors, surveyers, home inspectors, apprasiers and  title companies, were gainfully employed.  The demand for services skyrocketed.   

        As the projects subsided and Impact fees were raised the demand for new construction decreased and with it the need for related services.

        When people are making money, they spend money.   

        HOW BAD DEBT CAN BE A BENEFIT

           If lenders holding foreclosed properties are held to the same standards for maintenance that home owners are held to-this is likely to create an increased demand for services.

     Foreclosures are up 417% since 2007.  Which means more properties have now reverted to back to lenders.  But as many homeowners already know, most HOA's (Home Owners Associations) strictly enforce their rules.  Exempt from compliance are REO (Real Estate Owned) or Bank Owned Properties.

     Nelected Properties supress  and degrade property values.  When multiple properties fall into neglect and decay entire neighborhoods can be affected. 

      Code Enforcement which is regulated by local government can take action, it appears that in many municipalities they have failed to do so.  So what makes Bank Owned Property Immune?

     There has been much discussion with regard to holding lenders owning property to the same standards surviving home owners abide by.  This may be the first step in creating the need for ancillary services, and a small boost to the economy as well.

     Consumers have a vital role in helping to turn this situation around.  Refinancing demand has increased and interest rates are indeed attractive.  Investors are taking advantage of the low cost housing options currently available as are some Europeans looking here for vacation homes. 

     America has always been the land of opportunity.  Opportunity is ceated by recognizing a need. American's are a resilient bunch.  Things will get better.  One day at a time, and one deal at a time.