A lot of attention is paid to the connection between the unemployment rate and the housing market. The belief is that higher unemployment rates lead to more distressed sales which tend to drive down prices. This statistic is usually tracked on a national and regional basis. Since the health of real estate markets can vary so much from one town to another, it makes sense to evaluate unemployment on a more local basis as well.
For the Pasadena area, there is good news and bad news. The bad news is that while California state’s unemployment rate went down in January, the rate in the Pasadena area increased. The positive is that even with this increase, the rate in the area is still well below the state average. The Burbank Leader reports that California state’s rate was 10.9% in January, down from 11.2% in December. Local rates were as follows: Pasadena 9.2% up from 8.9%, South Pasadena 6% up from 5.8% and San Marino 5.5% up from 5.3% in December.
We will periodically track these local numbers and their influence, if any, on the local real estate prices.