Categorized | Residential

Evaluating the Job Markets Impact on Housing

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According to a recent report from Citigroup’s top economist, the job market has a greater influence on the performance of the housing market than does the number of foreclosures.

 

The housing market has been surging in more than one hundred cities in the United States. While cities like Florida have a tremendous inventory of foreclosures, the residential real estate market in the state has been thriving. Although the state does have an abundance of foreclosures, it also has a very strong job market. The state unemployment rate has improved by two percent in the most recent study.

 

Other states are seeing the same trend that is happening in Florida. The cities that have a strong job market are seeing a growing housing market despite having a significant number of foreclosures.

 

If the data from Citigroup’s top economist is correct, it is certainly good news for the residential real estate market. Many expect the number of foreclosures to increase substantially in the coming months, and fear that the increase will set the housing recovery back months. If this report holds true, that expected delay in recovery might not take place.

 

While the report is quite optimistic, there are still many people that are not ready to write off the impact of foreclosures. For the last eighteen months, there have not been nearly as many foreclosures hitting the market due to the robo-signing suit. Although some cities have had their residential real estate markets perform well despite a large inventory of foreclosures, there is really no way to determine how they will perform with double their current inventory.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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