April Employment Situation Better Than Expected

The U.S. Department of Labor reported today that non-farm payrolls declined by 539,000 jobs in April, an amount that is considerably better than the 610,000 declined expected by Wall Street. While private sector unemployment declined by 611,000, government hiring related to the 2010 census partially offset the decline.

The unemployment rate rose to 8.9% from 8.5%. Over the past year, the number of unemployed persons has risen by 6.0 million and the unemployment rate has increased by a staggering 3.9 percentage points. While many economists believe that the unemployment rate will ultimately top 10%, on Tuesday, Fed Chairmen Ben Bernanke stated, "currently we don't think it's going to get to 10% though even something in the 9% range is still too high."

Although the employment data that was released this morning was better, or shall we say, "less worse", than expected, it is uncertain as to whether or not we've seen a bottom in recession-related lay-offs. The massive level of job losses has been a contributing factor in the bursting of the housing bubble especially for those who bought their homes using exotic mortgages.

Foreclosures to Continue
RealtyTrac recently reported that in the first quarter of 2008, nearly 650,000 foreclosure filings were issued in the U.S. That represents 1 of every 194 households and marks a 24% increase since the first quarter of 2007. So far this year, over 156,000 families have lost their homes to repossession.

While Nevada, California, and Arizona lead the way in foreclosures, the Chicago real estate market has seen it's share of repossessions. As of this writing, RealtyTrac has over 64,000 foreclosures listed in Cook County and this number will probably continue to grow. Some estimates show that $362 billion in adjustable rate mortgages will reset in 2008 and many of these loans will fail unless additional loan rework programs are implemented by the Obama Administration.

For buyers, this represents an incredible opportunity to purchase real estate as a primary home or investment. Using our Buyer Rebate Plan, we will share up to 60% of our commission with you at closing. We have experience in negotiating and closing both Chicago foreclosure and short sale properties. Contact us today at 312-329-9596 to find out additional information.