October Employment Figures Encouraging

While the real estate market has slowed, there are many reasons for this  and cause to be optimistic. The slowdown, especially in Southern  California, can in a small part be explained by extreme weather swings,  discouraging going out and seeing homes. Unusual for this time of year,  it has rained off and on for the past three weeks. In October? And in  between times we’ve witnessed record heat.   Combine that with the heavy political advertising with increasingly  negative claims, stock market jitters, and with the exception of the  Chilean minors, no good news, and it’s no wonder people delayed their  home search.

Southern California Real Estate Depends on…    People being employed and able to buy a home. This is the most critical  part of the equation. And the news is encouraging. The fact of the  matter is that in October 151,000 jobs were added to the rolls. It’s a  far cry from the millions that we need, but it’s a number to the  positive, it is not paltry and it is not temporary government Census  jobs.    When you consider that people are still getting married, getting  divorced, relocating and all the other factors that influence in buying a  home, then the activity (and opportunity) will still be there. What’s  more is that the worst of the recession is over, despite the dire predictions the naysayers have been making since the worst of the  recession. Here is the latest from the Atlanta Journal Constitution.  

This is great news. For the second month in a row sales are up. Your  half-empty glass crowd will say that it’s down from a year ago, but in  today’s economy each year is a different dynamic. Yesterday we saw that  there were over 150,000 jobs added. Now we see increased home sales. We  are slowly recovering from what is the worst recession most of us has  ever witnessed. Combine that with the fact that the news on broadcast TV  has been all but canceled (except for sensationalist or embarrassing  celebrity stories), and the population, even without accurate  information about real estate, is still moving forward. And for each  home sold forty other industries are  activated. Yes, we need to be cautious, wise with our spending and  mindful of work. Chances are we always should be. But there is plenty of  room for optimism.

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