If you have been following news coverage about the recession over the last two years, you have probably heard many reporters mention foreclosures and unemployment in the same breath. It’s obvious how high foreclosure rates would follow high unemployment, as laid off workers sometimes struggle to keep up with their mortgage payments. But, less often discussed is the opposite: when jobs are readily available the number of qualified buyers grows, thereby increasing demand and subsequently home prices.

Iowa home values did not decline sharply as they did in the hardest hit regions during the recession largely because employment levels were stronger here than in many other parts of the country. These were key reasons why Des Moines topped the best cities lists of several organizations last year. And, Ames continues to post healthy unemployment rates, recently being named the lowest in the state among metro areas with a rate of only 3.9%.

Central Iowans should take courage that in spite of predictions that real estate values may experience single digit declines in some areas next year as foreclosure inventories continue to be sold off, because our area will probably continue to enjoy stable home values due largely to these promising employment figures.

Statistics and chart from the Des Moines Register http://bit.ly/eQLrK0

Post by Tabitha Zesch, Relocation Director.