1. The unemployment rate It's quite simple: Without a job, you can't buy a home.
And as the unemployment rate rises, fewer individuals are capable of purchasing a home. That decreases the demand for homes, which drives prices down. (Currently, to get approved for a mortgage, you'll need to show proof of income, says DeVol.)
Video: Has housing hit a bottom?
To find a city's unemployment rate, and see whether it's rising or falling, visit the Bureau of Labor Statistics' Web site. The most recent report, from Oct. 28, breaks down the unemployment rates in each state's major metropolitan areas and compares those numbers to the previous year's.
Also, see if local businesses are hiring and if large corporations are moving into the area. More jobs leads to more employees buying homes in the area.
2. Rising incomes House hunters who want to dig a little deeper can look at the average or median change in income among households in a neighborhood.
At a minimum, confirm that incomes are being adjusted for inflation (or, ideally, rising.) Homeowners who have stagnant or declining salaries may not have much cash left over after they pay their mortgage; as a result, they might not maintain their homes or stay on top of repairs, which could lower a home's value and even the value of neighboring homes, says Zandi.
The Bureau of Economic Analysis (BEA) offers some insight on personal income. Click here and choose tabs labeled "per capita personal income" and "all metropolitan areas" to see how an area's personal income compares to others and to previous years.
A big drawback is that the data released this year ends with 2007 figures. (The BEA will release 2008 data in April 2010.)
3. Fewer foreclosure filings and sales On average, foreclosed houses sell for 30% less than similar homes in the same area, although the figure varies by market, says Rick Sharga, a senior vice president at RealtyTrac.com, which tracks foreclosures. In areas hit hardest, especially cities in Sunbelt states, foreclosed homes often sell at half the price.
4. Inventories are declining In most areas where "for sale" signs are common, home prices are far from recovery.
In general, when more than 2% of homes in a neighborhood are selling at the same time, inventory is high, says Dean Baker, a co-director at the Center for Economic Policy and Research. As the number of homes for sale decrease, sellers have more leverage and a better shot at getting an offer close to their asking price.
Look at the month's supply of inventory, or how many months it will take at the current sales pace for inventory to be depleted. Five to six months is the normal range, but the current average is just under 10 months.
5. The list-to-sales price ratio is shrinking On a national level, homes are selling at around 5% to 10% below their asking price, says Baker.
Look at list-to-sales price ratios, which is the difference between the listing price of a home and the price at which it sold. If the price difference is shrinking for an area that suggests the real estate market is improving, says Michael Evans, the president of the American Society of Appraisers and owner of Evans Appraisal Service, which appraises residential properties.
Appraisers also can provide average list-to-sales price ratios and historical comparisons.
6. Home prices are falling On the other hand, decreasing sales prices could mean that the housing market has hit its bottom, says Baker. They also guarantee that the buyer is getting into a market at a fraction of the price that buyers paid during the bubble.
Wednesday, November 4, 2009
Tuesday, September 8, 2009
Local Housing Market Shows Signs of Improvement
September 04, 2009 11:31 AM
WAYNE HEILMAN
THE GAZETTE
The Colorado Springs area housing market moved closer to a turnaround in August as sales rose the fastest in nearly four years and prices fell by the smallest amount in more than a year, the Pikes Peak Association of Realtors reported Thursday.
Sales last month jumped 14.5 percent from a year ago to 891 houses, the third consecutive monthly increase and the biggest monthly gain since October 2005. Through the first two-thirds of the year, sales are off 3.9 percent from a year ago to 5,732. The number of homes on the market in August was down 20.3 percent from a year earlier to 5,040, the fourth consecutive monthly decline of more than 20 percent and the 16th consecutive month that the supply has dropped.
Homes stayed on the market in August an average of 80 days, about the same as the previous month but 10 days less than what the average was during the first half of the year. The median price of homes sold in August fell just 2.2 percent from a year ago to $199,550, the smallest monthly decline since July 2008. Prices have declined from a year ago every month for more than two years. The median prices is the midpoint of all sales prices.
“We are seeing the makings of a turnaround,” said Jay Gupta, partner and managing broker at Prudential Rocky Mountain Realtors and past president of the Realtor association. “Mortgage rates below 5 percent and first-time home buyers getting an $8,000 federal income tax credit are both very good signs for the market. The housing market is improving and hopefully it will continue getting better and bring us to a good market coming into next spring.”
Sales figures include transactions handled by association members, but not homes sold by owners. Most of the sales took place in El Paso and Teller counties. Most of the homes sold through association members are resales. The market for new homes also is improving — new single-family home construction last month jumped 42.3 percent from a year earlier to 111, the third consecutive monthly gain after 3½ years of monthly declines.
One other real estate market indicator isn’t showing signs of improvement — mortgage foreclosures last month were up 75.5 percent from a year ago in the biggest monthly increase in nearly two years. Foreclosure filings so far this year, 3,653, already exceed every other year but last year.
September 04, 2009 11:31 AM
WAYNE HEILMAN
THE GAZETTE
The Colorado Springs area housing market moved closer to a turnaround in August as sales rose the fastest in nearly four years and prices fell by the smallest amount in more than a year, the Pikes Peak Association of Realtors reported Thursday.
Sales last month jumped 14.5 percent from a year ago to 891 houses, the third consecutive monthly increase and the biggest monthly gain since October 2005. Through the first two-thirds of the year, sales are off 3.9 percent from a year ago to 5,732. The number of homes on the market in August was down 20.3 percent from a year earlier to 5,040, the fourth consecutive monthly decline of more than 20 percent and the 16th consecutive month that the supply has dropped.
Homes stayed on the market in August an average of 80 days, about the same as the previous month but 10 days less than what the average was during the first half of the year. The median price of homes sold in August fell just 2.2 percent from a year ago to $199,550, the smallest monthly decline since July 2008. Prices have declined from a year ago every month for more than two years. The median prices is the midpoint of all sales prices.
“We are seeing the makings of a turnaround,” said Jay Gupta, partner and managing broker at Prudential Rocky Mountain Realtors and past president of the Realtor association. “Mortgage rates below 5 percent and first-time home buyers getting an $8,000 federal income tax credit are both very good signs for the market. The housing market is improving and hopefully it will continue getting better and bring us to a good market coming into next spring.”
Sales figures include transactions handled by association members, but not homes sold by owners. Most of the sales took place in El Paso and Teller counties. Most of the homes sold through association members are resales. The market for new homes also is improving — new single-family home construction last month jumped 42.3 percent from a year earlier to 111, the third consecutive monthly gain after 3½ years of monthly declines.
One other real estate market indicator isn’t showing signs of improvement — mortgage foreclosures last month were up 75.5 percent from a year ago in the biggest monthly increase in nearly two years. Foreclosure filings so far this year, 3,653, already exceed every other year but last year.
Friday, August 21, 2009
Market Insights: 8-21-2009
By Larry Baer:
The National Association of Realtors reported this morning that sales of previously owned homes jumped 7.2% higher in July – posting its best performance since August 2007. July’s percentage increase was the largest monthly gain since the data series started in 1999. The July existing home sales data marked the fourth consecutive monthly improvement in this measure of activity in the housing sector.
There is a notable “fly-in-the-ointment” in this data set -- much of the recent sales gain in existing home sales has been a function of falling prices created by foreclosure sales and other distress motivated transactions. The median existing-home price has fallen by 15.1% on year-over-year basis. The share of homes sold as foreclosures or otherwise distressed properties held at 31% in July.
The massive government borrowing spree continues unabated – with Uncle Sam in the credit markets on Tuesday looking to borrow $42 billion in the form of 2-year notes, followed by Wednesday’s demand for $39 billion in the form of 5-year notes and wrapping up with Thursday’s request for $28 billion in 7-year notes. Be aware that last time around the demand for the 2- and 5-year notes was downright awful – which provided mortgage investors with all the justification they needed to push mortgage interest rates higher.
Keep your fingers crossed that the “safe-haven” appeal of government debt obligations and mortgage-backed securities continues to shine bright as the investment community debates the sustainability of the stock market rally. If, as I expect, those that argue stock values cannot be sustained at current levels without a solid increase in consumer spending ultimately win the debate – the rotation of capital out of riskier assets like stocks into safer investments like bonds and mortgage-backed securities should limit the upward trajectory of mortgage interest rates over the course of the next couple of weeks.
PROGRAM- Purchase
30 DAY
RATE DISCOUNT
CONFORMING 30 YEAR FIXED
80% LTV and >275,000 <= 417,000
5.125
0
CONFORMING 15 YEAR FIXED
80% LTV and >275,000 <= 417,000
4.50
0
CONFORMING 3-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 5-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 7-1 ARM
80% LTV and >275,000 <=417,000
4.625
0
VA/FHA 30 YEAR > $200,000
5.00
0
CONV. JUMBO 30 YEAR FIXED
75% LTV and > 417,000
6.45
0
CONV. JUMBO 5/1 ARM
75% LTV
4.50
0
120,150,180,270,360 day extended locks available
RATES AND POINTS ARE SUBJECT TO CHANGE WITHOUT NOTICE
EARL GRANT 719-260-2231
By Larry Baer:
The National Association of Realtors reported this morning that sales of previously owned homes jumped 7.2% higher in July – posting its best performance since August 2007. July’s percentage increase was the largest monthly gain since the data series started in 1999. The July existing home sales data marked the fourth consecutive monthly improvement in this measure of activity in the housing sector.
There is a notable “fly-in-the-ointment” in this data set -- much of the recent sales gain in existing home sales has been a function of falling prices created by foreclosure sales and other distress motivated transactions. The median existing-home price has fallen by 15.1% on year-over-year basis. The share of homes sold as foreclosures or otherwise distressed properties held at 31% in July.
The massive government borrowing spree continues unabated – with Uncle Sam in the credit markets on Tuesday looking to borrow $42 billion in the form of 2-year notes, followed by Wednesday’s demand for $39 billion in the form of 5-year notes and wrapping up with Thursday’s request for $28 billion in 7-year notes. Be aware that last time around the demand for the 2- and 5-year notes was downright awful – which provided mortgage investors with all the justification they needed to push mortgage interest rates higher.
Keep your fingers crossed that the “safe-haven” appeal of government debt obligations and mortgage-backed securities continues to shine bright as the investment community debates the sustainability of the stock market rally. If, as I expect, those that argue stock values cannot be sustained at current levels without a solid increase in consumer spending ultimately win the debate – the rotation of capital out of riskier assets like stocks into safer investments like bonds and mortgage-backed securities should limit the upward trajectory of mortgage interest rates over the course of the next couple of weeks.
PROGRAM- Purchase
30 DAY
RATE DISCOUNT
CONFORMING 30 YEAR FIXED
80% LTV and >275,000 <= 417,000
5.125
0
CONFORMING 15 YEAR FIXED
80% LTV and >275,000 <= 417,000
4.50
0
CONFORMING 3-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 5-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 7-1 ARM
80% LTV and >275,000 <=417,000
4.625
0
VA/FHA 30 YEAR > $200,000
5.00
0
CONV. JUMBO 30 YEAR FIXED
75% LTV and > 417,000
6.45
0
CONV. JUMBO 5/1 ARM
75% LTV
4.50
0
120,150,180,270,360 day extended locks available
RATES AND POINTS ARE SUBJECT TO CHANGE WITHOUT NOTICE
EARL GRANT 719-260-2231
Thursday, August 20, 2009
Colorado Springs #3 for Housing Recovery
Best Cities For A Housing Recovery
Increased transactions and relatively low foreclosure resales spell good news for these markets.
In Depth: Best Cities For A Housing Recovery
The stock market is up 50% from its lows in March, and consumer spending increased in May, June and July. But when will housing turn around?
Even the wisest can't answer that, and experts caution against putting too much hope in rising home prices given the country's unemployment situation and high rate of mortgage defaults. But key measures indicate that some metros are more on their way to recovery than others.
Take Miami. Sales are up 27% over last year and only 3.5% of those are the result of foreclosure resales. In Lincoln, Neb., where sales are 15% higher this year than last, only 3.6% of them involved bank-owned properties Both top our list of markets on their way to health.
In Depth: Best Cities For A Housing Recovery
Behind The NumbersIn compiling our list, Forbes looked at 161 of the country's largest metropolitan statistical areas (or metros)--geographic entities defined by the U.S. Office of Management and Budget (OMB) for use by federal agencies in collecting, tabulating and publishing federal statistics--where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest. Our data came from Zillow.com, an online housing data firm based in Seattle, Wash. Our list doesn't profess to call the turnaround, but rather point out which cities are in the lead on the road to recovery.
To be sure, the national real estate picture remains grim. In Las Vegas and Madera, Calif., for example, respective sales are up 40% and 64% from a year ago. But 67% and 71% of those respective sales are from foreclosure resales.
The Rankings
10. San Jose, Calif.
9. Santa Barbara, Calif.
8. Redding, Calif.
7. Denver, Colo.
6. Bremerton, Wash.
5. San Luis Obispo, Calif.
4. Salem, Ore.
3. Colorado Springs, Colo.
2. Lincoln, Neb.
1. Miami-Ft. Lauderdale, Fla.
Other areas, however, are showing a spark at the very least and signs of bottoming at the very best.
Miami and Lincoln were followed by Colorado Springs, Colo., Salem, Ore. and San Luis Obispo, Calif. Here, sales have returned, but foreclosures are a relatively small percentage. In Colorado Springs, sales activity is up 14%, while transactions involving bank-owned properties made up one-fifth of them. While 20% is still a sizable chunk, it's relatively sound compared with areas like Bakersfield and Vallejo, Calif., and Phoenix, where over 50% of sales made up of foreclosures.
Because housing, like any asset, depends on supply and demand, the sales rate is an incredibly useful statistic in judging a recovery. However, an increased number of sales does not necessarily mean an imminent recovery.
"A bottom in sales volume is not the same thing as a bottom in home values," says Stan Humphries, chief economist at Zillow.com. "The former is a necessary precondition for the latter, but most economists expect prices to keep falling nationally through at least the early part of next year."
Increased transactions and relatively low foreclosure resales spell good news for these markets.
In Depth: Best Cities For A Housing Recovery
The stock market is up 50% from its lows in March, and consumer spending increased in May, June and July. But when will housing turn around?
Even the wisest can't answer that, and experts caution against putting too much hope in rising home prices given the country's unemployment situation and high rate of mortgage defaults. But key measures indicate that some metros are more on their way to recovery than others.
Take Miami. Sales are up 27% over last year and only 3.5% of those are the result of foreclosure resales. In Lincoln, Neb., where sales are 15% higher this year than last, only 3.6% of them involved bank-owned properties Both top our list of markets on their way to health.
In Depth: Best Cities For A Housing Recovery
Behind The NumbersIn compiling our list, Forbes looked at 161 of the country's largest metropolitan statistical areas (or metros)--geographic entities defined by the U.S. Office of Management and Budget (OMB) for use by federal agencies in collecting, tabulating and publishing federal statistics--where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest. Our data came from Zillow.com, an online housing data firm based in Seattle, Wash. Our list doesn't profess to call the turnaround, but rather point out which cities are in the lead on the road to recovery.
To be sure, the national real estate picture remains grim. In Las Vegas and Madera, Calif., for example, respective sales are up 40% and 64% from a year ago. But 67% and 71% of those respective sales are from foreclosure resales.
The Rankings
10. San Jose, Calif.
9. Santa Barbara, Calif.
8. Redding, Calif.
7. Denver, Colo.
6. Bremerton, Wash.
5. San Luis Obispo, Calif.
4. Salem, Ore.
3. Colorado Springs, Colo.
2. Lincoln, Neb.
1. Miami-Ft. Lauderdale, Fla.
Other areas, however, are showing a spark at the very least and signs of bottoming at the very best.
Miami and Lincoln were followed by Colorado Springs, Colo., Salem, Ore. and San Luis Obispo, Calif. Here, sales have returned, but foreclosures are a relatively small percentage. In Colorado Springs, sales activity is up 14%, while transactions involving bank-owned properties made up one-fifth of them. While 20% is still a sizable chunk, it's relatively sound compared with areas like Bakersfield and Vallejo, Calif., and Phoenix, where over 50% of sales made up of foreclosures.
Because housing, like any asset, depends on supply and demand, the sales rate is an incredibly useful statistic in judging a recovery. However, an increased number of sales does not necessarily mean an imminent recovery.
"A bottom in sales volume is not the same thing as a bottom in home values," says Stan Humphries, chief economist at Zillow.com. "The former is a necessary precondition for the latter, but most economists expect prices to keep falling nationally through at least the early part of next year."
Tuesday, August 18, 2009
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Latest news: NAR Research First-Time Home Buyer Tax Credit Webinar: September 3, 2009
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Latest news: NAR Research First-Time Home Buyer Tax Credit Webinar: September 3, 2009
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
Tuesday, July 21, 2009
5 top blunders of Internet home buyingHere's some advice to help you avoid the common pitfalls of online real-estate searching.While the painful real-estate swoon appears likely to extend well into 2009 — at least — the number of Americans using the Internet to find the home of their dreams is poised to keep on climbing.According to the 2008 National Association of Realtors Profile of Home Buyers and Sellers, 87% of homebuyers used the Internet to search for homes last year. That's up steadily from 84% in 2007 and 80% in 2006.But despite its mounting popularity, the Internet home-buying process can present a host of pitfalls. To help make your online real-estate searching more effective, here's a look at the top five Internet home-buying blunders and what you can do to avoid them.1. Assuming you can do it all yourselfThe Internet allows users to handle for themselves many of the tasks that could once only be performed by real-estate agents. The NAR profile, for example, found that the number of homebuyers who first learned of their homes on the Internet has been rising in recent years, to 32% in 2008, up from a tiny 2% in 1997. Accordingly, the number of homebuyers who first learned of their homes through agents has been declining, to 34% in 2008, down from 50% in 1997.But although the Internet can provide heaps of helpful tips and research, it would be a mistake to assume that the Web is all you need to buy a house — unless you are an experienced real-estate investor. Purchasing real estate can be extremely complicated from a legal standpoint, and it's easy to make a mistake if you don't have an expert advising you. And when it comes to something as expensive as real estate, those mistakes could cost you thousands of dollars."Doing all the paperwork yourself is a huge mistake," says Joshua Dorkin, chief executive officer of BiggerPockets.com, a real-estate networking and information site. "There are so many things you can miss on a contract."2. Looking too narrowlyThe sheer amount of information about the real-estate market online can be overwhelming. As a result, buyers can be tempted to stick to just one or two popular real-estate search engines, such as Realtor.com, for their research. The problem with doing that, however, is that you're missing out on the biggest advantages that the Internet offers. [Realtor.com is a partner of MSN Real Estate.]First, you're closing yourself off to a smaller cross section of the homes that are out there. "A lot of the sites aren't comprehensive and don't have all of the new listings," says Pat Kitano, a co-founder of Domus Consulting Group, which works with real-estate brokerage firms on technology marketing strategies.Don't assume that because a house is on one real-estate Web site, it is on all of them, says Greg Healy, vice president of operations at ForSaleByOwner.com. "It's still very fragmented," he says. Healy recommends using several Web sites to get a more complete picture.Second, you miss all the breaking, up-to-the-minute information on the housing market that can make you a smarter consumer. Blogs have become a popular resource for real-estate agents and others to post information as it happens. "If consumers are interested in a local area, they should find local real-estate bloggers who know this breaking information," Kitano says.3. Ignoring the independentsOne area that major real-estate search engines often overlook is the market for homes sold by the owners. "A lot of people forget to think how many homes are sold without agents," Healy says. The current estimate is that 20% to 25% of homes are listed by owner, he says.Your dream house could easily fall into that 20% to 25%. So how do you bring homes sold independently into your online searches? "Craigslist is one of the best resources," Dorkin says.4. Falling for fake listingsRemember, the Internet is a giant playground for scammers, and unfortunately they have penetrated the world of online home buying as well. Combine big dollars for online advertising and a lot of people searching for homes, and the result is a proliferation of fake home listings. There are a number of red flags to look out for."If there are no photos [of the house], that's a big warning sign. That's just people trying to collect page views," Healy says.But even if the listing has photos, it's not guaranteed to be legitimate. Legitimate Web sites will put watermarks on their home photos to brand those photos as their own. If a home's photos have several different watermarks on it, then you can guess you are looking at the work of a scammer.5. Putting too much stock in home-valuation Web sitesSites such as Zillow.com and Cyberhomes.com have changed the way people buy homes by putting pricing information at buyers' fingertips. But they're not infallible.Don't assume to know what the value of a home should be based on what these sites tell you about the neighborhood. There are many elements of a home's value that home-valuation sites cannot incorporate."Take their values with a grain of salt," Dorkin says. He recommends using this information merely as a range. Conduct other research to narrow that range. For example, walkscore.com can tell you the number of amenities within walking distance of a location — those are some of the factors that can raise or lower the value of a home.By Matthew Bandyk, U.S. News & World Report
Local employment conditions unchanged in JuneComments 6 Recommend 0
July 17, 2009 - 1:07 PM
WAYNE HEILMAN
THE GAZETTE
The Colorado Springs area job market remained little changed in June as the unemployment rate stood at 8.1 percent for the fourth time in the past five months and job losses from a year earlier continued to hover around 10,000.
The Colorado Department of Labor and Employment reported Friday that job losses were widespread across the area economy with every industry but health care and government employing fewer than a year earlier. Professional and business services, manufacturing and tourism all lost at least 2,000 jobs since June 2008. The employment numbers, which come from a survey of employers, are adjusted for seasonal changes.
The 8.1 percent jobless rate is up from 5.6 percent a year ago and likely is the highest since the early 1990s, although no direct comparisons can be made because of variances in the department’s data. The unemployment rate before seasonal adjustments last month was 8.3 percent, up from 7.7 percent in May but below the 20-year high of 8.6 percent in March.
The statewide unemployment rate also remained unchanged in June, at 7.6 percent, a 21-year high and up from 4.8 percent a year ago. The state has lost more than 100,000 payroll jobs during the past 12 months, or a 4.4 percent decline.
Although other local and national economic indicators are improving, unemployment and job growth numbers tend to take longer to show improvement because businesses wait to expand staff until they are sure conditions have improved.
See archived 'Top Stories' stories »
July 17, 2009 - 1:07 PM
WAYNE HEILMAN
THE GAZETTE
The Colorado Springs area job market remained little changed in June as the unemployment rate stood at 8.1 percent for the fourth time in the past five months and job losses from a year earlier continued to hover around 10,000.
The Colorado Department of Labor and Employment reported Friday that job losses were widespread across the area economy with every industry but health care and government employing fewer than a year earlier. Professional and business services, manufacturing and tourism all lost at least 2,000 jobs since June 2008. The employment numbers, which come from a survey of employers, are adjusted for seasonal changes.
The 8.1 percent jobless rate is up from 5.6 percent a year ago and likely is the highest since the early 1990s, although no direct comparisons can be made because of variances in the department’s data. The unemployment rate before seasonal adjustments last month was 8.3 percent, up from 7.7 percent in May but below the 20-year high of 8.6 percent in March.
The statewide unemployment rate also remained unchanged in June, at 7.6 percent, a 21-year high and up from 4.8 percent a year ago. The state has lost more than 100,000 payroll jobs during the past 12 months, or a 4.4 percent decline.
Although other local and national economic indicators are improving, unemployment and job growth numbers tend to take longer to show improvement because businesses wait to expand staff until they are sure conditions have improved.
See archived 'Top Stories' stories »
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