Serving Bellingham & Whatcom County
Coldwell Banker Bain
Tom DeRose :: Wireless: 360-220-9355 :: Email: tderose@coldwellbankerma.com
Housing Imperils Job Gains
Posted on January 11, 2012
Housing Price Slump Keeps Workers Who Want to Relocate Tethered to Their Homes
The prolonged U.S. housing bust is threatening to claim yet another victim: the nascent recovery in the labor market. New data released showed just how bad the housing market remains. Home prices in 20 major metropolitan areas fell 3.4% in October from the previous year, according to the S&P/Case-Shiller Home Price Index. It was the 13th consecutive month for year-to-year decline.
The job market, by contrast, has finally been showing signs of improvement. The unemployment rate fell to 8.6% in November, the lowest level in more than 2½ years, and recent weekly reports have suggested the trend continued in December. Furthermore, more and more companies are hiring and have plans to hire soon.
The problem is that workers who have to move to a different part of the country in order to start a new job can't leave their home. In many cases, they owe moer on thier home than they can sell it for. In order to sell, they have to write a big check that they can't afford to write. So they can't leave their home, can't more to secure their job, and therefore, stay put.
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