Friday, June 04, 2010

Does length of unemployment indicate the real estate sectors health?

I have always thought that the job market had a direct relationship to the Real Estate market. Below is an article that backs up my opinion. Rhode Island is once again near the top!!! (and as usual, not in a good way)
We need jobs to encourage this economy and not minimum wage jobs but good paying jobs!
The banks are now looking at potential home buyers with so much scrutiny, that it is making it nearly impossible to get a mortgage.  There are a large percentage of Rhode Islanders' that are either going through, or have just gone through a short sale or a foreclosure!  These people will not be able to buy at least for 3 years! 

The few that can afford to actually make a mortgage payment and still continue to exist need to know that they will be getting periodic raises and have some kind of security regarding their place in the job Rhode Island

I am just a Realtor in Rhode Island. I do not know the answers on what to do about the job market. I do know that most of the industry in Rhode Island has disappeared. We are now a hospitality state, which would be great if the beaches remained open during the summer, at least.

Here is the article
Does length of unemployment indicate the real estate sector’s health?

Meanwhile, I am here to help people find homes. Rhode Island has the potential to be one of the nicest states around!

Photo by Karen Hurst of former Rocky Point


Elmo the Entrepreneur - Marke Solo in Second Life said...

I live in Kentucky and everyday I see empty houses with foreclosure notices on them. Most of the houses we see in this state are the ones that were bought in the top of the market.

Of course, if people don't have jobs, how can anyone in that situation pay their mortgages? The economy has a way of feeding on itself in a self perpetuating manner. If there isn't any job creation, then the real estate and other markets start to suffer, if they suffer, then more jobs (sales) are lost.

My question for the picture that you have featured is, where did those people go once they left? The economy isn't just hurting in Rhode Island, it is everywhere!

Karen Hurst, Realtor said...

Hi Elmo/Marke:)
I honestly do not know where the residents of foreclosed homes went. In the interest of full disclosure, that photo is of former Rocky Point amusement park which had summer cottages. When the park closed down, the people in the cottages had to leave. But I ask myself the same question. Many have moved away or are now renting. Thankyou for your comments. You are right, it is everywhere and it is a domino effect. Scary!