Negative publicity actually gets more attention than positive publicity? So it stands to reason that the major networks want to actually show you all of the bad stuff that’s happening in the economy, because they know negative headlines sell. Well, I think it’s time to look at some of the positive things that are actually happening right now and focus on that instead, the recovery.
All of these indicators are important to look at when considering how they affect the housing market right now. We gained 4,800,000 jobs, which is more than we’ve ever gained in the entire history of unemployment. This information actually comes from the Bureau of Labor Statistics, dated July 2nd, 2020. This information is a month or so behind as this is when the data actually comes out. So we ended up in June with 11.1% unemployment rate. Unemployment went up in March and April and down in June. Consumers are gaining confidence. We understand that what’s going on recently with the virus and you’ve upsurge could go down and we’ll be looking at that and reporting accordingly.
Here’s the crazy thing, that as of June, 2020, unemployment was 5.9%, and if you compare that to June of 2010, unemployment was higher at 10.5%, which is just about half where the unemployment rate was 10 years ago. This makes us as Americans nervous because we know that in 2010, we had a high foreclosure rate. Well, this is absolutely understandable, but we need to understand that all of the active forbearances, which are past due on their mortgages, according to Black Knight, 77% of those have at least 20% equity in their homes. So the likelihood of foreclosure is very slim because they have the equity to actually sell.
People have more options. A quoted put by Black Knight, the high level of equity provides options for homeowners, policy makers, mortgage investors, and service providers in helping avoid foreclosure activity and default related losses. So it’s not all doom and gloom after all. Be careful who and what you are listening to when making your decisions about buying or selling right now. To go over your options and to get a more accurate evaluation from an experienced professional, we’ll be happy to help you sell your home here in Brentwood, California, 94513, and Oakley, California, 94561. Krista Mashore here. Remember, when you do what you love, people love what you do. Make it a great home selling and buying day.