Jobs Report Has Bad Housing-Related Numbers
Although the October jobs report was considerably higher than expected, it contained numbers which indicate future problems in the housing sector. Employment among 25- to 34-year-olds remains at pre-recession levels and actually fell from the previous month. The 25-34 age group is typically considered the prime homebuying years. Residential construction employment remains low by historical standards. “Even though home prices have rebounded strongly and are now close to ‘normal’ levels, construction still lags. New home starts and construction employment are still way below their pre-bubble norm and face a long, slow climb,” said Jed Kolko, chief economist for Trulia.