unemployment continues to rise, page-7

"Given this is on the property forum, what is you point?

Unemployed people still need some where to live"


Wow....just wow.....do you really not understand the implications, or are you just a troll? I really hope you are a troll....


Gee where do I start...

1) Well first thing is mortgages are a lot easier to pay with two incomes instead of one. I would hazard to say a lot of home owners are in over their heads and would be forced to sell if one of them lost their jobs. All these property prices havent been driven by wage growth!!

2) Unemployment flows right throughout the economy. If people dont have jobs, or job security they dont or cant spend. This has a snow ball effect, less spending less sales, less jobs, less spending, less jobs etc etc.

3) Sentiment-if people are worried about job security they arent going to bid large at auctions are they. If anything they probably wont even buy and will make do with what they have. Sentiment is the REAL killer though-people buy houses predominately on emotion-if that emotion goes from optermistic to scared...LOOK OUT!!

I could go on but you should start to appreciate unemployment has EVERYTHING to do with property prices. It is the NUMBER ONE risk to property prices.