Although the fight to improve the housing industry continues, there is some hope for real estate employment. Underlying fundamentals show a recovery is possible as long as employment continues to tick up, Capital Economics said last week.
Overall, the economy added more than 200,000 jobs in December which, and here comes the “tell-me-something-I-don’t-know” part, could help to boost employment in residential real estate if combined with lower property prices and looser underwriting standards.
We’ve been saying all along that the economy won’t recover until the housing market recovers, but here is the first case that it might also happen the other way around.
With more people employed and more banks willing to write 80% loan-to-value ratio loans, perhaps the real estate industry will start to perk up.
It’s still a long road back to where the industry was operating pre-recession, but any sign in the right direction is a step forward.
Are you seeing this effect on Main Street? Has the increase in jobs helped you find more qualified buyers?
Please share your thoughts with us.