Sunday, July 24, 2011

California households are doing without

The poll found that 37% of Californians were cutting back on household expenses such as groceries and gasoline, while 52% were forgoing luxuries such as concerts and restaurant meals, in order to make their mortgage payments.

And with home prices weak, the poll found that 31% of the more than 1,500 California voters surveyed had put off looking for or buying a new home — and that 50% had set aside investing in home improvements.

Both of those trends are sobering reminders of how hard it will be for California to escape the grip of the devastating economic downturn. Housing has traditionally fueled recoveries, but tepid demand for homes — and even home improvements — is crimping the creation of new jobs in construction and real estate.
The Golden State economy remains overly dependent on the residential real estate sector that's stalled on both the supply and demand sides. Homes aren't being built, improved or sold while consumers are pulling in their horns and won't spend on these things fearing for their job security -- if they have work. So unless the economy can diversify, economists predict this standoff will continue for the foreseeable with its accompanying high unemployment.

1 comment:

Anonymous said...

Never, ever, in a condominium that is associated with (within, on etc...) the same property as an HOA. NEVER...The HOA will destroy your life! Their board will steal, destroy property, start fight, upon fight, upon fight...discriminate, etc.. and do whatever they please. The HOA will file knowingly fraudulent lawsuits against the condo, or unknowingly unsuspecting condo owners (created conflict) to steal homes. Plain and simple. Legal, or not. Even if you owe no money, have no contract, or similar. Believe what you will, but this is my unfortunate experience and opinion.