Central Florida Real Estate Blog

Could the U.S. economy slip back into the throes of the recession that nearly crippled the nation’s financial system and protracted any semblance of a housing recovery? The analysts at Moody’s Investors Service (http://www.moodys.com) think so.

“The risk of a double-dip recession is rising. We believe the odds of a near-term double dip recession have increased from nearly one in five this spring to closer to one in four,” they wrote in a research report released Monday.

And they warn that if the economy sinks back into recession, housing activity will follow. If such a scenario were to play out, Moody’s says home prices are likely to fall by another 20 percent before they stabilize in early 2012 – a full year later than the company’s baseline outlook of a 5 percent drop before leveling off in early 2011.

Moody’s says the economic recovery is losing momentum with retail, housing, manufacturing, and most importantly the job market having weakened in recent weeks. Real GDP, which grew 5 percent annualized during the fourth quarter of 2009, has slowed to half that pace in the second quarter of this year, the ratings firm explained.

“This rate is below the economy’s potential, and we expect unemployment to drift back up into the double digits,” Moody’s said in its report.

All this contraction bodes badly for housing markets, where oversupply and muted demand have home prices fettered, and weak economic conditions, especially rising unemployment, are making it harder and harder for borrowers to keep up with their mortgage payments.

Moody’s says foreclosures pose a major downside risk, with another vicious spiral of defaults and property repossessions a possibility.

The company’s analysts say the success of the Home Affordable Modification Program (HAMP) is vital to squashing this possibility, but it has been progressing slowly and a number of borrowers are simply too deeply troubled to benefit from a loan modification.

If the recent revisions to HAMP – including principal-reducing modifications and forbearance for unemployed homeowners – do not produce more substantial results, Moody’s says foreclosures will exceed already-elevated projections, leading to an even sharper drop in home prices.

For more information on Central Florida real estate statistics, housing trends, bank owned foreclosure or short sales, please contact Joe Bornstein, Broker/Owner, Rock Springs Realty (http://www.rockspringsrealty.net) or contact us toll free at 877-333-2811 or by email joe@rockspringsrealty.net. We also offer "FREE" lists of bank-owned foreclosure listing for Buyer and Investors throughout all Central Florida counties.

Hey Real Estate Agents and Realtors...have you ever run out of the office and left the folder on your desk with a customers phone number? Or, you are showing homes and forgot the Seller's/Seller's Agent phone number on the home you are showing?

In this situation, your only choices are to call your office and bug somebody, or spend a $1.25 for your phone carriers 411 service. This drives most people nuts and is a total waste of money. 

Now Google (http://www.google.com) has fixed the problem. A "FREE" 411 phone directory service that works like a charm. Somebody recently shared this with me and I have personally tested it out. Very Cool technology!!!! Google really hit it out of the ball park here.

Here's how to use it.
1. Call 800-goog-411. (800-466-4411)
2. It is totally free and it sends you a text of exactly what you are looking for. Just like regular 411 service, identify the City and State, then the desired name, company, or listing...the system does the job from there. It will also connect you directly to the phone number you are looking for. Use it when you are out on that next showing, list appointment, and lose the phone number to the seller.

This quick tip is brought to you by Joe Bornstein, Broker/Owner of Rock Springs Realty (http://www.rockspringsrealty.net) in Apopka, FL. We are a full service brokerage operating throughout the Central Florida area. We accept listing and buyer referrals nationwide (paying 25%) so don't hesitate to contact us if we can be of assistance. Toll Free at 877-333-2811 or joe@rockspringsrealty.net.