Double Dip? I don’t think so!
Redwood City, CA: 22 cities in danger of double dip.
“A new report from Moody’s Economy.com singled out 22 cities that are at risk of slipping back into a recession in as early as three months. To come to this conclusion, the economists considered dwindling progress in employment, housing starts, home prices and industrial production. The at-risk cities are spread across the country, ranging from Missoula Montana to Mobile Alabama, though more than half of the cities are in the South, and five are concentrated in the Midwest. “With chances of a national double-dip recession now estimated at about one in four, several metro areas will probably experience their own downturns in the first half of 2011,” said economist Andrew Gledhill, author of the report. Private sector hiring has been tapering off in recent months compared to the start of the year, triggering Moody’s to boost its forecast for a national double-dip from a 20% chance to 25% chance. In the 22 identified metro areas, Gledhill said private sector hiring is particularly sluggish, increasing the chances of a slowdown. Without a substantial pick-up in hiring, Gledhill said the number of cities in danger of a double-dip recession could grow, possibly reaching the triple-digits.
“There was a time when all 384 metro areas were in a recession. We probably won’t get to that point again, but given the growing risk of another national recession, we’re on the lookout for more metro areas that will be weakening substantially on several levels over the next six months to a year,” Gledhill said. He added that a handful of metro areas, particularly those that are industrial economies, are also suffering from a recent falloff in manufacturing.”
How does this apply to San Mateo and Santa Clara Counties? Probably we won’t have the same effect at the aforementioned 22 cities, as our economy is a lot stronger and robust along without being an industrial economy. You may see in certain area of the counties a slight decline in price, 5-9%, however, for the most part we will remain as a healthy but level market.
All the home buyers who are sitting on the fence because they are waiting for the double dip, forget it! Within San Mateo and Santa Clara Counties we just don’t follow the National trends. We are unAmerican that way. Now is the time to take full advantage of the current soft prices and low interest rates. Come next April you will be glad you bought that home when you see your 2010 tax returns.
Additionally, if you are have a loan on your home that is 5% or more call me, 650-479-6607, because there are loans available out there that can reduce your monthly payments using a 30-year, fixed rate loans. NOW is also the time to take advantage of those loans. I am doing it myself, right now and it looks like I will save monthly, on two properties, around $550/mo with no money out of my pocket. NOW is the time to get your financial house into perfect shape. Maybe you would prefer to email me at Cliff@SFBayHomes.com?