The Pain of Unemployment: It Will Be Deep, But Not for Long

There are two crises in this country right now: a health crisis that has forced everyone into their homes and a financial crisis caused by our inability to move around as we normally would. Over 20 million people in the U.S. became instantly unemployed when it was determined that the only way to defeat this horrific virus was to shut down businesses across the nation. One second a person was gainfully employed, a switch was turned, and then the room went dark on their livelihood.

The financial pain so many families are facing right now is deep.

How deep will the pain cut?

Major institutions are forecasting unemployment rates last seen during the Great Depression. Here are a few projections:

• Goldman Sachs – 15%
• Merrill Lynch – 10.6%
• JP Morgan – 8.5%
• Wells Fargo – 7.3%

How long will the pain last?

As horrific as those numbers are, there is some good news. The pain will be deep, but it won’t last as long as it did after previous crises. Taking the direst projection from Goldman Sachs, we can see that 15% unemployment quickly drops to 6-8% as we head into next year, continues to drop, and then returns to about 4% in 2023.

When we compare that to the length of time it took to get back to work during both the Great Recession (9 years long) and the Great Depression (12 years long), we can see how the current timetable is much more favorable.

Bottom Line

It’s devastating to think about how the financial heartache families are going through right now is adding to the uncertainty surrounding their health as well. Hopefully, we will soon have the virus contained and then we will, slowly and safely, return to work.

Search Denver Area Homes:

Start the process today by searching the MLS for your next home. Mortgage interest rates are still historically low and the metro Denver market has more housing inventory that it did a few years ago. Explore the homes available today to get a feel for price points, types of homes, and locations so you have a better feel when it comes time to take a more serious look. My Denver real estate blog is full of useful information for homebuyers considering buying a home. Please call me, or send me an email / text, to discuss your thoughts about your next home.

Please contact me before you look at new construction, remember the builder’s real estate agent represents the builder’s interest, not your’s. There is no cost for you to have a buyer’s agent represent you in a transaction with a sophisticated seller. In fact, I may be able to help you save money and negotiate for extras which the builder may not let you know about.

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Time To Sell Your Home?

When it is time to sell your home in the Denver area, I encourage you to work with a real estate agent who has the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. The market is more balanced now and your asking price is an important component of your selling strategy. And if you are selling your home to then buy a new home, you’re in luck, we are now in a “goldilocks” market ideal for that type of transaction. Contact me today to learn how your home stacks up against the competition and how we can position your property to sell quickly and for a fair price.

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