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As Jobless Claims Soar, Impact on Housing Inevitable

According to a government statement on Thursday, the number of people receiving unemployment benefits has reached an all-time record. The Labor Department reported that the number of Americans continuing to claim unemployment insurance for the week ending Jan. 17 was a seasonally adjusted 4.78 million, the highest on records dating back to 1967. This number didn’t include the 1.7 million people receiving benefits under an extended unemployment compensation program authorized by Congress last summer. The total number of recipients is actually close to 6.5 million people. Also, according to an Associated Press tally, companies have announced about 130,000 layoffs in January.

The impact on the real estate market is inevitable. Home prices in the hardest hit areas will most likely plummet and foreclosure rates will soar as unemployed Americans plow through their emergency savings accounts. So far, the Boston job market has seen a hiring freeze, but not large job cuts. The more local impact on the Boston real estate market are yet to be seen.

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