Unemployment Down.. Stocks Up.... Housing?

The L.A. Business Journal says the unemployment rate in Los Angeles County has dropped to 4.8% a reversal over the last few months.

The Stock Market seems to be holding up amid predictions that the Fed will leave interest rates alone during meetings today and tomorrow. If the FED does leave rates alone and doesn't quibble about possible inflation fears we could see rates drop again; possibly to levels last seen in 2005.

Home prices in our area have been declining for the last year from their 2005 levels. In 1992 when prices declined in the Beach Cities it was mainly because of massive layoffs in aerospace and few jobs which led to a huge number of foreclosures flooding the market. The recent price declines seem to be a matter higher interest rates and of buyers having reached a level of...... NO...... more then an underlying economic problem as was the case in the 1990's.

When checking pending sales in the MLS, it seems that property has been selling well for October. There are 161 pending sales noted in the MLS and 97 of them have gone into escrow since October 1, 2006. Prices have declined, interest rates are at their lowest point in 7 months and the employment outlook is good. Only time will tell if this trend will continue through the holidays.

Quick Note: As of 10/26/2006 There are now 106 pending properties