employers

Unemployment is one of the major factors stalling San Mateo counties economic recovery. As I stated on one of my earlier blogs late last year, under normal economic down cycles, inflation becomes a factor. In this bad economy we find ourselves in now, there are three main factors in keeping inflation in check

Banks are keeping their money, reducing loan risk, and holding back bailout funds.
Employers are holding back on hiring new employee's, even if they are experiencing small growth.
Consumers are saving more money and holding back on major purchases, staying in cash when possible.

Experts warn that the minute one of the above factors reverses, we will see the beginning of an inflationary period, further devaluing the dollar. In all reality, while National Report Unemployment sits at just under 10%, this figure does not account for the millions of Americans who have stopped looking for work or who have taken minimum wage jobs just to do something more than nothing. These "Underemployed" actually bring us a figure estimated between 16% and 21% of work-ready American who are not in the marketplace as productive citizens. The Great Depression was the last time we have seen these kinds of numbers. On the plus side of this equation, our government has decided to hold interest rates in check - for now. And while bailouts and subsidies are creeping into nearly every sector of the American business model (Can you say Socialism?), it is clear that those who have the spirit and imagination to make their own destiny can and will find a way to succeed. There are more individuals starting up more small business' right now that at perhaps any other time in history. And the Internet has made this "Entrepreneurial Boom" possible on an unprecedented scale. It is not uncommon now to be at a social function and everyone you talk to owns their own business! It may not be their primary source of income, but they are proud of their hobby-turned-side-line-turned-way-to-retire-early! Short term market dilution is likely, as spending habits change and new alliances are forged. I believe economic recovery is still a year or two away... mid-term elections will see a media frenzy of "good news" in an effort to stem the tide on the Democratic losses, but if one really reads between the lines, the economic growth in 2010 will be lucky to hit 2%. Not enough to make much difference in the average Americans already meager lifestyle. It will take 3-5 years to regain jobs lost since December 2007. And that is only if inflation stay in check. Renters who can qualify to buy are sitting in the perfect market to get their home at a discount. And anyone who bought their current home prior to 2003 is probably sitting on enough equity and value to be able to move sideways if not up. Just depends on their needs and desires. If you are interested in seeing what this market holds for you as a Homeowner, contact me today and let's sit down and review all of your options! All the best, Michael