It has been a rollercoaster ride in the jobs and housing markets for the past few years. The good news is that both are heading in a positive direction, according to numerous experts. This means the rollercoaster ride may finally come to a stop and we can get off. To find out where we’re heading in the near and more distance future, let’s take a look at some of the predictions regarding jobs and homes:
Careers and Jobs Outlook
With millions of Americans still out of work, it is no secret that we continue to sit in the middle of an employment crisis. And the crisis is not likely to go away completely as 2011 unfolds, according to economist, author and advisor to the White House Council of Economic Advisors, Diane Swonk. Swonk estimates, however, that the crisis will diminish by 2013, returning many of the millions who are currently unemployed back to work.
With the extension of the Bush tax cuts, there also comes a ray of hope. Many financial experts and economists believe this will foster economic growth in 2011. Economic growth, of course, creates new jobs and requires qualified individuals to fill these job positions.
Housing and Real Estate
In 2010, the housing market revealed signs of recovery. This was primarily due to the first-time homebuyers’ tax credit that was offered by the Federal government. The purpose of the tax credit was to give buyers a cash incentive for buying up the houses in inventory. And, it worked. The problem is that the credit has now expired and even the experts aren’t quite sure what this means for housing prices and the housing market in general.
It really comes down to the simple rule of supply and demand. Housing prices are expected to move with the number of home buyers versus the number of houses that are on the market. Now, with more homes up for sale than there are buyers, housing prices remain low. When there are more buyers in the market than there are homes up for sale, or more of an equal number, housing prices will level and may even increase.
Overall, the sentiment is that “booms tend to follow busts.” Since the economy, jobs and housing have gone through a major bust, it seems as if the next boom happening is just a matter of time. While this certainly does not negate the choppy waters ahead, there is a light at the end of the tunnel. And while it was a painful lesson, most Americans have learned to buy homes they can afford, to live more within their means and how to better manage finances so they have savings to fall back on in the case of a job loss. In short, while it may not be fully bright this year, the future does look brighter.
To learn more about the housing market and how to determine when you should buy a home, visit Quizzle.com, where you’ll get access to a free home buyer’s toolkit that walks you through the process and free home loan recommendations that show you how much home you can afford.
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