A recent report out by Rismedia shows the U.S. economy added more new jobs than was expected. Despite the 9.1 percent unemployment rate, the unexpected news coupled with the uptick in corrected employment gain numbers for the previous two months caused the mortgage rates to tip the mortage rate ladder back up over 4 percent after buyers enjoyed mortgage rates of 3.94% the first week of October.
The most recent unemployment numbers for the Metro Atlanta area, however, remain higher than the national average at 10.4 percent. The struggling employment market in the metro area is having a profound effect on our real estate market as well.
The most recent housing numbers for Metro Atlanta (August, 2011) show closed units up with a total of 4,725 total single family homes closed. This is up 30% from one year ago. However, home values continue to struggle with the average sales price for August 2011 at $178,232 compared to $203,459 - a 12% decline in property values.
My most recent post (10-11-11) talked about a 16% increase in foreclosure notices for the month of September with Gwinnett County leading the pack (once again).
Without question, current year trends show that a few things will have to happen before the Metro Atlanta real estate market will be robust again: People are able to find jobs; foreclosures are absorbed and short sales become a distant memory.
Real estate sales data is courtesy of FMLS (First Multiple Listing Service) and includes only those counties in Metro Atlanta who list in the service.
More Reading:
Jobs Report Lifts Rates Above 4 Percent
Metro Atlanta Unemployment Rate Increases
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