Fairfax Living Real Estate Blog: Jobs Are More Important Than Interest Rates

Looking at today's paper over the angst at the looming jobs report where 250,000 temporary census workers are expected to lose their jobs. The recent, predicted here on Active Rain by many, 30% drop in existing home sales after the tax credit ended April 30th, are clear signs that what is keeping the economy down is a lack of a J-O-B. In some cases, the fear of losing ones job is enough to make you want to stay in your apartment.

A case in point, in my neighborhood are several families within spitting distance of my house that have contemplated selling their homes and cashing out. All of them have lived here long enough to still have equity. They are the lucky ones. One neighbor says work is drying up for his government contracting. Another says his wife is probably going to lose her job. I spoke to my webmaster in Maryland the other night, and he tells me his wife has been laid off. Things are tight. I am not sure where my income is coming from either. In better times, I am sure I would have had the security of knowing another one was just around the corner. I am not sure that I feel that way these days. I am certain that is what is keeping most potential home buyers out of the market.

Hopefully. the ecomomists will be wrong and the market will turn out better than anticipated. Wall Street seems to be expecting the worst. Lets just hope they are plain wrong and its better than anyone could expect.