Which came first, the chicken or the egg? A question often posed and one that, even with all our technology, we will never truly know the answer to.

Which came first, an increase in our unemployment rate or the magnitude of foreclosures?

How has the unemployment rate affected housing? It is safe to say that the current unemployment situation has directly influenced many facets of our economy.  I think we all agree on that. But how has it specifically affected the housing market?  Individuals without an income unfortunately can’t afford to invest in housing.  And sadly, many homeowners became unemployed after already having a home mortgage.  When homeowners can no longer fulfill their financial obligations, homes are forced back on the market, for lack of a better way to put it. This scenario ultimately adds more homes into a growing inventory, then causing the lowering of housing prices.

So back to the chicken and egg. How have foreclosures affected our unemployment rate? Investing in real estate has historically pulled our country out of recessions. But here’s where the Catch-22 comes in, with consumer confidence at all-time lows, many are hesitant to purchase. It is the fear of job loss that prevents many from fulfilling their dream of homeownership, and rightly so.

I am certain that in my lifetime, homes will never be as affordable as they are right now. Interest rates remain at historic lows and with more homes on the market, now most certainly is the time to buy. If you are hesitant, there is protection out there. Job Loss Protection programs, such as the ones offered at the Allen Tate Company, provide optional mortgage protection for homeowners who may experience an involuntary loss of employment. If you have questions, don’t hesitate to ask your trusted real estate advisor. That’s what we are here for. To help.

By Amanda Serra