Normally, I would never tempt fate and try to predict the future. I’m no fortune teller and I have no crystal ball. However, due to my interest in foreclosures and what’s happening in California, I’ve drawn a few conclusions of my own that I hope you’ll find interesting.
Don’t make any bets on my predictions, but let’s all watch and see if my hit rate is pretty good.
Based on articles and lectures I’ve attended within the past few months, our economy in California will hit rock bottom in August. It will take a while for us to start our long climb back into a healthy economy, as the epicenter of the ripple effect hasn’t settled down yet .
1. Foreclosures and REO sales will continue to be an epidemic throughout 2009 and well into 2010.
2. The long climb out of the housing slump will continue to be an issue for at least 20 months (ending approximately March, 2011).
3. The housing prices that are climbing up now in July, 2009 will drop again in August, 2009.
4. Due to its partnership with banks, Home Depot will grow as the REO sales market grows, since they will become the largest vendor managing repairs for bank-owned properties with “local” construction contractors.
5. The California state budget is almost resolved and the depth of the cuts will be like facing Armageddon. All public sectors will be affected and expect that the many layoffs within California will continue the foreclosure spiral effect.
6. Don’t expect the cities or counties to continue to be on top of cleaning public restrooms, litter on the street, or the maintenance of park landscaping. They won’t have much money left, so expect to pack your own trash and pitch in to keep trash off the ground.
7. Crime and scams will increase. However, with the power of Twitter, Facebook, YouTube, and other social media sites, we’ll be able to capture these criminals faster.
8. The legalization of marijuana is seriously being considered within California in order to pull tax revenue from its sales and distribution. It’s a wild card prediction, but I predict that it will hit the voters by 2011 and once it passes, a very large growth industry will happen for that market with lots of jobs for growers, distributors, tax collectors, etc.
Let’s see how I fare once August comes and goes. I look forward to your comments.–Jennifer Filzen
Follow me at www.twitter.com/filzen
Posted on July 16, 2009
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