Plummeting unemployment = better housing outlook

As unemployment continues to drop (initial jobless claims are down 44% from mid-2009!), that’s good news for housing, as Dan Green points out. It’s more than just “people with jobs are obviously more likely to buy a home.”

There’s a psychological connection between employment and housing, too.

It’s not just out-of-work Americans that don’t look for new homes — it’s fearful Americans as well. When people have concerns about losing a job, or taking a pay cut, they’re are just as unlikely to move as people without a job at all.

[…]

See, when the job market recovers, it lessens those fears and draws out new buyers — even those with an “underwater” home in need of a short sale. A rising jobs market takes home values right with it.

Click here to read it all over at The Mortgage Reports.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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