Unemployment Rate & National Housing Market Update November 2020

Dated: November 12 2020

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How does the unemployment rate affect the housing market? ⁉️ There's a lot of data that points to a positive forecast for the housing market in the future. The unemployment rate is one of the contributing factors and it was lower pre pandemic and then spiked pretty high between April and July hovering between 8-14% but it has been coming down month after month since April which is a positive sign and obviously we hope that it keeps coming down. Experts are projecting that it will continue to drop. There have been several recessions in the united states throughout history. So lets look at those to compare what is going on today. If you look historically duirng the times during recessions where the number of months that unemployment was greater than or equal to 9% the recession of 2020 is the lowest. This puts unemployment in perspective to where we are right now, nowhere near where we were in the past. The great depression had 108 months The great recession had 30 months The 1980 oil recession had 19 months and in 202 we only had 4 months where the unemployment rate was greater than or equal to 9% Also the number of people going into active forebearnace is decreasing, and it is continuing to go down since May. So more people are paying their mortgages as they are getting their jobs back. Now people are wondering what is going to happen due to the election. I recommend looking at a few factors. One is inventory. Back in 2008 the inventory levels were very high putting us in a buyers market. Home prices were depreciating because there was so much supply. Today's inventory is very very low showing that it is a sellers market and prices are going up because buyers are paying more to secure the homes. Also right now the percentage of equity that home owners have is very strong. John Burns Consulting tell us that 42% if the homes owned in the country are owned free and clear, they have no mortgage. And that 90% of homes have at least 10% equity which indicates that less homes will go into foreclosure due to the equity that they have. So there is a lot of data that points to a positive forecast for the housing market for the future. Feel free to reach out to us at no cost or risk for a hassle free strategy session: Coyle & Verberne Real Estate | 916-761-8201 |⁠ www.coyleandverberne.com | ⁠ taracoylerealestate@gmail.com⁠ ⁠Powered by EXP Realty DRE CA 02054880 | NV S.0191395 #Sacramento #SacramentoCA #SacramentoRealestate #homebuying #homeselling #housingmarket #marketupdate #howtobuyahome #processofbuyingahome #canibuyahome #shouldibuyahome #shouldisellmyhome #howtosellmyhome #sacramentohousingmarket #coyleandverberne

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Tara Coyle

Get to know Tara Coyle Coyle & Verberne Real Estate is committed to getting results and building trust for our clients. Tara customizes a tailored strategy to meet each individual’s needs. Tara, ....

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