The continuing drag of the real estate sector on the economy will have an impact on unemployment rate for the forseeable future
Costa Mesa, CA (PRWEB) July 17, 2011
As unemployment remains high, the U.S. real estate market has stayed low. The most talked about topics today are home foreclosures and reductions in sale prices. The rate of vacancy nation-wide is 11% and shows signs of slow improvement. According to unemployment-extension.org, the high demand for unemployment extensions can be partly attributed to the slump in the real estate market.
Even though home prices and low interest rates have become a national trend, this has not led to an increase in buyers in the market according to Unemployment-extension.org. Tough lending restrictions are preventing mortgage brokers from aiding future homeowners in their real estate purchases.
There are also a large number of foreclosed homes entering the market, which is worrisome. Unemployment-extension.org has found a direct correlation between the poor state of the real estate market, and more individuals looking for aid from unemployment extensions. "The continuing drag of the real estate sector on the economy will have an impact on unemployment rate for the forseeable future," says Mike Butler, VP of Unemployment-extension.org
Recently, states such as Arizona and Wisconsin have approved the implementation of laws extending unemployment benefits. As these programs prove successful, more states across the nation are proposing similar legislation.
According to Unemployment-extension.org, unemployment can lead to great economic problems including reduced funds and assets for those affected, which is why unemployment extensions could be the right solution for many communities.