NEVADA COUNTY'S UNEMPLOYMENT AND HOUSING

California as well as Nevada County's housing markets often trends with it's unemployment, click here for U.S. Bureau of Labor Statistics. May 11, 2012.  When the unemployment rate rises, a few things occur. The first effect is bond prices get bid higher, therefore reducing it's yield which pushes the cost of borrowing money lower (less expensive to borrow the same amount of money).

Secondly home prices also trend lower, as the economy weakens so does the demand for housing. Over the course of the past two years, statistics show more Californians have found employment. The state's housing markets have shown signs of strength over that same period.

Home builder equities who are traded daily on the NYSE have moved to the upside as much as 50% in the past six months. Two of the largest home builder's equity prices are shown here TOL and DHI. Equity prices in general are said to represent what the the future holds (forward looking indicator). If this is the case, then it could be a great time to purchase real estate.

An under water seller may want to sell into the market's current strength to receive the short sale tax advantages. I have written the tax implications prior to the rule change click here.

Where a buyer may want to wade into today's market as prices of many homes Nevada County homes have come off their highs by as much as 60%.  Mortgage rates are currently at or near all-time lows and there are loan programs which could get you into a home for as little as 3% down.

While no one knows for sure if real estate prices will go higher any time soon, indicators do look positive.

Scott Hopper - Realtor 530.477.2277