Let's think for a moment about economic factors that can affect the real estate market:

Supply, demand, interest rate, affordability, credit, incentives, prices...

Then let's think about the one thing that affects a region's economy and in turn the housing market more than just about anything:

JOBS

"J" is for Jobs; That's Good Enough for Me!

(inspired by C is for Cookie)

And it should be good enough for you too.  Jobs, job growth, and unemployment rates are the leading indicators of the strength of a region's economy and without a question, the strength of the job market determines the strength of the real estate market.

Here's a few numbers you should know about the Washington D.C. metropolitan area when it comes to jobs:

35,400 -- the number of jobs added to the D.C. metro area between July 2007 and July 2008

4.1% -- the unemployment rate in the D.C. region -- the lowest of all major metropolitan areas in the United States and well below the national average of 6.0%

Look at the chart below provided by George Mason's Center for Regional Analysis.  It compares job growth in the 15 largest job markets in the country. 

Job growth indicates population growth.  Population growth determines housing demand.  Create jobs and the housing market will benefit.  Lose jobs (like Detroit) and the housing market will suffer.  It couldn't get simpler than this.

The Washington D.C. metropolitan area continues to benefit from the large number of employment opportunities with the federal government sector, government contracting, military, high technology, tourism, professional services, legal, lobbying and legal services.

Pondering the future direction of the D.C. area housing market?  Follow the job market and sing along with me:

"J" is for Jobs; That's Good Enough for Me!

Got a job in the D.C. area? Or moving here for a job?  Click here to start your home search.