Enough Said — Jobs Are Everything!
Posted by Ted C. Jones on June 18, 2012
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This past week Allen Berryman (CFO) suggested that I look at housing sales with respect to unemployment rates. Wow.
Almost a perfect inverse relationship. The Pearson Product Moment Correlation Coefficient was slightly greater than 0.80.
Jobs are everything. Period.
Once again the data show that wherever sales go, prices eventually follow. And sales (and these are the 12-month moving averages) are rising. We are likely looking at the turning point for rising property values.
(and thank you Allen for your suggestions and questions).
Ted
