At the risk of sounding like a geek, I’m really excited about this graph. While the trend feels painful in some senses, it’s interesting to see how Sacramento compares with the state and country.
As you can see, while the unemployment rate began to plateau nationally during 2008, Sacramento County and California weren’t finished increasing. If you remember, the latter part of 2008 was not an easy time for Sacramento real estate. That’s when a “wave” of foreclosures flooded the market and really drove prices down. If you don’t remember the wave, check out a previous post that shows ten years of housing inventory as well as a video interview on why inventory is so low right now (only one month of housing supply).
Unemployment is simply one of those big metrics to watch, and we need to see a decline over the long haul to really see our housing market improve. After all, it’s hard to imagine a full recovery when unemployment has still been hovering around 11.0% in Sacramento County, right?
Click the thumbnail image to view a larger graph (2x the size of the one in this post). If you’d like to use the graph on your blog or website to be a resource to your readers and clients, please do so. Please see my sharing policy for details. It’s a huge honor when others share my content.
Thank you to my real estate broker friend Joel Wright who traded some data back and forth with me as I gave him what I had for all of Sacramento County and he gave me what he had for California and the United States. That’s how this graph was born. Data source: EDD.
What do you see above? How does this graph strike you?
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