Foreclosures keep rising, not good news for the job market
Posted on April 15, 2008
Filed Under Boomers, Gen X, Gen Y, Job Search
The number of homeowners facing foreclosure continues to rise and more data is in that shows repossessions continue to skyrocket as troubled homeowners continue walking away from their financially underwater homes. Unfortunately, it appears the worst is not yet over as resetting adjustable rate mortgages are expected to crest this summer. According to Rick Sharga, RealtyTrac’s vice president of marketing, “Once we’re through that batch of loans, the worst will have been worked through the system,”. Let’s hope he’s right.
As the mortgage foreclosure crisis worsens the trickle down to the labor market grows as well. Just last week we saw Home Depot announce they were cutting their HR staff by 50%. This on top of previous news that more and more companies are planning layoffs for 2008. Everywhere we turn we’re seeing more and more signs of not only an economic slowdown, but a job market slowdown as well.
We may see the peak in mortgage foreclosures, but the aftershocks will likely be felt for years to come.
Until next time…
I haven’t been in the real estate industry for quite some time, but this mirrors the housing contraction in the mid 90’s, which also followed a easy loan period.
Is the current economic slowdown fueled by the decrease in disposable income resulting in the inevitable rise of the easy entry ARM’s?
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