With widespread fear due to the unemployment numbers, let’s dig a little deeper into those numbers. There are actually several silver linings to consider when you hear those scary unemployment numbers reported.
- More than 4,000,000 Americans who filed unemployment initially, have likely already found a new job.
- 14.7% of Americans are unemployed. The largest group of unemployed is, by far, teenagers. Their unemployment has very little impact on the housing market.
- Industries showing the most aggressive growth since the original unemployment filings include health care, food and grocery stores, retail, delivery and telecommunications.
- Contrary to the fear that is reported, the unemployment rate will not initiate a massive new surge of foreclosures. In fact, homeowners have more equity in their homes than ever before.
- 58.7% of homes in America have at least 60% equity.
- 42.1% of all homes in the US are mortgage-free.
- Inventory levels are at an all-time low. It will take years to move from a sellers market to a balanced one.
Let me repeat a very sobering stat - 58.7% of homes in America have at least 60% equity. That number is completely different than it was back in 2008 when the housing bubble burst. During The Great Recession, many found themselves owing more on their mortgage than what their homes were worth.
*Here are the top 10 states that are rebounding the fastest from the original unemployment filings.
Drilling down in the statistics to get a bigger picture of what unemployment means for homeownership and understanding the significant equity Americans hold today, really does help to see a more clear picture. With 42.1% of all homes in this country being mortgage-free, there is already a large number of homes that are not at all at risk for foreclosure.
Bottom Line
When you hear or read a single statistic that gives you care for concern, dig a little deeper in the statistics. The real data is not emotional and will give you the real picture too.
*Thanks to NAR and KCM for providing the graphics used above.
© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | On Unemployment & Home Equity
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Charlotte NC Real Estate Agents
Debe Maxwell, Realtor®/Broker/CRS
CharlotteBroker@icloud.com
Direct: (704) 491-3310
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