The Fed does not take much comfort
in the decline in the unemployment rate because it is not driven by job growth. The slow labor market recovery, which is in stark contrast with other sectors of the economy, is unwelcome news for President Obama, whose administration has struggled to boost employment.
High joblessness cost the Democratic Party control of the U.S. House of Representatives, yet fairly upbeat data on consumer spending, trade and manufacturing points to a strengthening in the economy and we have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold.
The foreclosure crisis is the biggest threat to U.S. economic growth. Lender delays in processing defaults may prolong a decline in prices. As many as 250,000 foreclosure filings that would have occurred at the end of 2010 were delayed by the ongoing probe into lender practices. Those proceedings will be pushed into this year, resulting in an “ugly” first quarter.
In Florida, among the states most affected by delays because the courts oversee foreclosures, filings plunged 54 percent from a year earlier to the lowest level since July 2007. Miami and Orlando were the top search sites in the nation behind Las Vegas and Los Angeles last year; bargain hunters kept these two Florida recessionhit markets in the top two search spots throughout last year, for every month during 2010. This is good news for our state-but particularly for the Miami area, where we’re welcoming both Floridians and relocating and retiring Americans into our communities as well from all over the world.
As many commercial real estate investors and land developers are aware, the Department of Community Affairs oversees Florida’s Land Planning and community development, having the responsibility to insure growth occurs in accordance with the state’s vital growth management laws. Governor Scott wants to combine the FDCA with Florida Department of Transportation and the Florida Department of Environmental Protection.
Meanwhile, it’s becoming more apparent that our new governor is very cognizant of the importance of real estate investment and commercial land development to Florida’s future. The fight between Florida conservationists and Florida business development has continued so long in this state it’s a tradition at this point. Meanwhile, development here is at a standstill and our local economy is welcoming foreign investment in residential and commercial properties as vital to our growth, perhaps our survival.
Banks and other mortgage institutions are in the money business. They are not set up to hold real property - which not only isn’t producing income for them unlike their loans, but brings with it various costs of upkeep. Banks here in Florida should be very interested sellers. For real estate bargain hunters, these new foreclosure predictions may be good news. However, the news of record foreclosures is not bad news for everyone. For many buyers, this is simply advertisement for great potential future investments.
