Housing Will Continue it’s Long Slow Melt
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Wall Street Journal Conjectures That Housing Will Continue it’s Long Slow Melt Rather Than a Double Dip
Housing will not recover until job growth recovers—and there is little good news out there on the job front. While the US did add 431,000 jobs in May, 410,000 of those jobs were temporary Census jobs that will last just a few months. Tragically, there were fewer total US jobs at the end of May 2010 than at the end of May 2000. 1.3 million fewer jobs to be exact. More important is the fact that we have on average 100,000 to 120,000 net new additional workers entering the work force each month. So in the 10 year period commencing May 2000, we needed to add at least 12 million jobs just to stay even. So we are down 13.3 million jobs from normal.
Recall also that the hemorrhage in job losses did not even start until January 2008.
It’s going to be a long, hot summer folks…….
Housing on the Rocks, Make It a Double? WSJ Article