Unemployment numbers have come out this week so we thought we would explain those and discuss how they are affecting your home value. In the beginning, many projected we were going to be at 20% or more. As you can see we have beat that number. Also when thinking about unemployment we need to think about what industries are unemployed? What is going to happen when we open up? As you will see restaurants, retail, healthcare, and child care make up 60.4 % of that figure. Many feel that once the economy opens back up, most will get their jobs back.
As mentioned these numbers are no surprise to investors and economists. You will notice the stock market actually closed ahead on Friday after these numbers were reported. How does this affect the real estate market? Usually as unemployment increases, the demand for homes will decrease, as folks will be putting their move on hold. Right now that is not the case, we are actually seeing an increase in demand. Despite the misconception, we have actually seen an increase in demand. We had a slowdown at the beginning of this but right now we have a shortage of inventory. Builders have fewer new homes available for sale, and there have been less reported foreclosures with lenders offering forbearance. This has helped stabilize home values in the market. So in the short term, we have actually seen appreciation. We are not sure what will happen in a few months but for now, if you are looking to sell in the short term now is a great time to do that. One thing we emphasize is that we want you to trust your instincts on this information. We encourage you to develop your own conclusions. As we always say real estate is local so if you have any questions on how this might affect your neighborhood and your home value please reach out to us directly. We would love to talk.