San Diego, CA – April 6, 2010
Well, the talk of the town at the end of last week was JOBS. Of course, the earthquake got in its two cents worth on Sunday, but today we’re going to bust open the discussion of what’s happening in the San Diego real estate market by providing a look at what happened to jobs last week.
Check out the graph to the left. The small dark area to the upper right represents the 160,000 jobs that were actually created last month. Whahoo!!
Wait. Don’t let the wine go to your head too quickly. Check out all the red job losses to the left. Yeah, it’s going to take more time than perhaps you thought to get all those unemployed folks back to work. And what does that mean for home values, both if you’re a current homeowner and are thinking about selling, or a potential home buyer who has the means to purchase now.
People Without Jobs Don’t Buy Homes
If you’re a current homeowner, then look at the graph above and make a decision. If you currently have equity in your home, and many of you do, then it’s going to be quite a long time before the job market improves enough to bring a significantly higher number of buyers to your doorstep. If you want to sell, NOW is a great time.
If you’re looking to buy a home, and you have a good job and job security, then look at all the folks that are unemployed (in red above), and know that the lower number of potential buyers will continue to keep home prices affordable for quite a while.
Even if you think the jobs outlook will or is improving, you’ll be pumping bilge water for lots of years before all these folks get back to making our economy as robust as it was a few years ago. Add the deficit, world issues, and the unfortunate state of our compromised political system, and home prices, like jobs, are not going anywhere any time soon.