One of the key components we need for a healthy real estate market recovery is Jobs. If you don’t have a job, it is rather difficult to buy a home. Unfortunately this report is bad news. We are back up to 7.2% unemployment rate in Minnesota.
For your property values to recover, we need people working. If this trend of higher unemployment continues in Minnesota, we will continue to see the housing prices fall.
August 19, 2011 Minnesota Unemployment Rate
There is a ratio used when we calculate housing units needed in an area. This number is general number used from NAHB, and it can vary depending on the type of jobs created.
But for general purposes, for every 1.1 job created there is need for 1 housing unit.
Instead of adding 1.1 job, we are taking away 1.1 jobs. What do you suppose will happen to the price of the homes?
No more Location, Location, Location. Now it is Jobs, Jobs, Jobs!
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