Get ready for another unemployment report tomorrow

Tomorrow brings another unemployment report and analysts expect the economy to shed a whopping 250-350,000 jobs in November. The majority of this years layoffs have come in the last 6 months of the year. Those people were still paying their mortgage. Out of all of those job losses how many more homes does that equate to going into foreclosure? Not right away but within 6-12 months.

With that many additional foreclosures you have that many additional homes on the market further lowering the sales price. Until we see a rebound in the jobs market don’t expect any rebound in the housing market. Anyone telling you differently is selling something, most likely their house.

Sorry, non-farm payrolls come out Friday,not tomorrow, for some reason I keep thinking today is Thursday. Maybe just hoping this week ends that much sooner.

“Anyone telling you differently is selling something, most likely their house.”
We need more than lower unemployment, we need low enough unemployment for employers to bid up wages. If you don’t see that happening, you’ve gotta expect home values to come down to meet wages. average house price should equal 2-3 times annual incomes. Simple.

November payrolls report looking worse than in 30 Years.
Commentary: Horrible ISM, ADP reports point to disastrous job losses
By MarketWatch Dec. 3, 2008

“WASHINGTON (MarketWatch) — Job losses were bad in September and October, but November is shaping up to be the worst month for workers in more than 30 years.
Three reports released on Wednesday hint that the labor market was much weaker in November than we expected, and we were already expecting the biggest job losses since 1980.”

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