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Bank, Government and FNMA Foreclosure Listings Affected by Job Rates

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By : John Cutts    99 or more times read
A recent report claimed that jobs lost when the housing market crisis started might not be recovered. As the number of properties under bank and FNMA foreclosure listings continues to rise, the number of jobs lost also rises. However, an analysis by McClatchy Newspapers stated that these jobs are not replaced even when the economy starts to recover and new jobs are created.

The report stated that the country's recovery has been slow because unemployed people do not have the necessary skills required for the jobs available. This means that, as an example, even if Bellingham foreclosure listings and the whole city's housing market continues to recover, the progress would be slow primarily because employment will still be a problem.

Foreclosure listings in Washington remain a major problem for the state, and this was not helped by recent job market reports which showed how weak the labor market has become. According to the latest employment figures, nonfarm jobs declined by 131,000 in July, while over 140,000 census employees ended their temporary jobs. Only 71,000 jobs were created in the private sector, which is hardly enough to offset the loss in other industries.

The employment report also showed that those areas that benefited most from the strong performance of the housing market three years ago will not likely regain their old stability, and that bank and FNMA foreclosure listings will continue to hammer sectors such as home-related manufacturing and housing construction. Analysts also stated that the employment report showed that life will be most difficult for skilled tradesmen and low-skill laborers.

According to analysts, the high number of properties under lists of home foreclosures does not only impact the whole country's economy directly, with housing investment accounting for 2.5% of the U.S. GDP. These foreclosures also affect other industries, like manufacturing related to home building, such as businesses that produce kitchen cabinets, floors, cooling and heating equipment, home appliances, carpets and other household supplies.

With these in mind, real estate analysts are predicting that the jobs lost in various sectors tied up with the housing market will not be recovered and will be replaced by other skills. They further added that recovery from the impact of high number of properties under bank and FNMA foreclosure listings will take a long time to achieve.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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