After several months of strong job growth, hiring slowed sharply in May, raising concerns once again about the underlying strength of the economic recovery.
The Labor Department reported on Friday that the United States added 54,000 non farm payroll jobs last month, following an increase of 232,000 jobs in April. May’s job gain was about a third of what economists had been forecasting.
The unemployment rate ticked up to 9.1 percent from 9.0 percent in April. Home prices won't rebound until jobs come back. But jobs won't come back until the housing mess gets fixed.
That's a problem because both the housing market and the broader economy are having trouble getting back in gear. Hiring is losing steam, and after home values hit a post-boom low, many are projecting further price declines.
Even with all the negative news, one thing to remember is people must have a place to live- a house- an apartment -a condo. The housing demand will always be there it is just a matter of at what price.
Real estate is local and therefore different than other investments, like stocks or bonds. A home in Idaho may be worth twice as much as a similar style and size home in Indiana.
It is important to remember that local economic conditions will affect local real estate more than national economic conditions. Don't get me wrong it is still important to track nation statistics and indicators just not as important as local.
Jobs are local, schools are local, factories are local, government is local and all have a different economic impact, positive or negative for different areas of the country.
Since real estate is a local investment it is important to work with a real estate professional who is also local and familiar with the areas economic conditions and indicators. Work with a well educated agent who is connected to the community and can give you some insight on areas past, present and future economic performance.
Don't let the national news affect your decision to invest in an area you feel safe, after all you have to live somewhere, just be sure it is somewhere you enjoy
Syringa Realty requires all of our agents to have a bachelors degree or a profession real estate designation in order to work for the firm so our clients can be assured that they are working with the some of the most knowledgeable and passionate agents in the country.
Check back as we talk about the local Idaho economy and some for my predictions for the real estate market ahead.
SyringaRealty.com
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