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California Foreclosures for Sale Rose as Jobless Rate Grew

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By : John Cutts    99 or more times read
California foreclosures for sale rose in October compared to foreclosures in October last year as the statewide unemployment rate also climbed up.

According to analysts at the University of California-Los Angeles and economists at other institutions, the statewide jobless rate, which reached 12.5 percent in October, will likely hit 12.7 percent and then will start to decline. But they added that the rate will not fall below the ten percent level until 2012.

The analysts also contended that Californians will continue to experience difficulties as employers are not likely to hire in the first months of 2010 and that it will take years before the housing and manufacturing sectors can return to their employment levels during the boom years.

Economists including Jerry Nickelsburg of UCLA Anderson and Esmael Adibi of the Chapman University A. Gary Anderson Economic Research Center believe that jobs will be created in 2010, but these additional jobs will not be able to spur significant growth in the labor sector.

A report on foreclosures nationwide in October showed that California topped all other states in foreclosures, with more than 85,400 of its residential units hit with default or foreclosure notices. More than 15,000 of these have been posted as California foreclosures for sale by lenders, nearly 35,000 were issued notices of trustee sales and almost 36,000 received notices of default.

With the pace of foreclosure rising by almost 50 percent in October on a year-over-year basis to one foreclosure posting for every 156 homes this year, California ranked second in state foreclosure rate listings. The pace though slowed by a little more than one percent from the pace in September.

California and three other states Florida, Michigan and Illinois comprised 52 percent of total foreclosure postings in the U.S. in October.

According to UCLA economist Nickelsburg, increased demand from abroad and from within the country for goods and services produced by California will spur state recovery. Demand will rejuvenate major industries in the state, including agriculture, shipping and logistics.

Nickelsburg contended that California should move away from residential construction and retail toward education, health care and renewable energy to create jobs. Beacons economist Christopher Thornberg added that California lost a lot of jobs because it depended too much on tourism and trade. Comerica Bank economist Dana Johnson meanwhile said that health care and high-technology companies will help create more jobs.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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