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Rick Freeman & Amy Davis' Blog

By Rick Freeman | Broker in Raleigh, NC

Real Estate's Reality Of Unemployment

real estate and unemploymentHere's more timely information about Raleigh real estate from Rick Freeman and Amy Davis, the Freeman/Davis Home Team at Allen Tate in the Triangle.

Here’s what’s happening in real estate and it’s all about J-O-B-s!  The statewide unemployment rate dropped to 10.8% in April, down from the all-time high of 11.2%.  This is the lowest the state has seen since unemployment was at 10.7 percent in April 2009.  It’s an encouraging trend but for people trying to sell their homes and others with neighborhoods full of "for sale" signs, lets it into perspective.  In April of 2007, our unemployment rate was 4.4%.  Yes…a jump of over 6.5% in just 3 years.  It's no wonder why homes are on the market for so long.  People without jobs can’t purchase homes and when people lose their jobs, they have a higher potential to fall behind in payments which leads to more distressed properties. 

High unemployment results in less demand and more supply, which in real estate means downward pressure on prices.  The forecast for the 2nd half of 2010 is for higher interest rates and more foreclosures. As for Washington, the only thing government is involved in is loan modification programs which to date have had little impact and historically have had little effect on speeding recovery.  It appears that the current economic situation will result in home prices continuing to decline as demand wanes and supply increases.

The silver lining in this news is if you are a prospective home buyer.  Almost 90% of the workforce is employed and with home prices declining and interest rates about to rise, now is an excellent time to consider a home purchase.  If you or someone you know is ready to start the process, give us a call.  Remember, your glass is "half full" so don't be discouraged!  We love helping people like you and your friends make the best of these economic times and encourage you to let people know about us.  Friends who know us and our integrity telling others about the confidence they can place in our services.  We do appreciate it.

The Freeman/Davis Home Team welcomes your comments on any of our blog entries.  If you have a question about Raleigh Homes, Raleigh Real Estate or Life In The Triangle, please contact Rick Freeman and Amy Davis!

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