Do Unemployment Rates affect real estate forecasts? What is Unemployment Rate, and do local changes have any influence on local housing market predictions that are displayed on the Growth Maps real estate maps?
Not a super simple answer…. The right answer is, it depends, it depend on the local City Block, and larger more macro or Zip Code and County trends, and thus each local market is different.
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The unemployment rate and local real estate forecasts.
The unemployment rate is the percentage of the total labor force that is unemployed, but actively seeking employment and willing to work. The unemployment rate is one of the most closely watched statistics because a rising rate is seen as a sign of weakening economy that may call for cut in interest rate. A falling rate, similarly, indicates a growing economy which is usually accompanied by higher inflation rate and may call for increase in interest rates.
To keep the unemployment rate more intuitive, at Growth Maps the top percentiles are based upon a LOWER unemployment rate, so a higher number is more advantageous. The unemployment rate and real estate maps. The national official unemployment rate like the national or metro market median housing price, typically and nearly no influence on the local housing market prediction. Only the hyper-local or Tract and Block Groups are leading economic indicators.
Think about it, you or anyone can walk a few thousand feet or a quarter of a mile, or just a few street lights, in a major city in the USA, and the local demographics, and unemployment rates change. And this change is NOT based upon some national number, but the local market conditions, which is why the local housing market predictions are so important in properly assessing risk and investment opportunities.
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