Today’s L.A. Times reported mortgage delinquencies in the California will hit 14% in very short order. [Link Here] This on the heels of news that unemployment in California is at a post-WWII high… that’s over 60 years… two-and-a-half generations!
What does this mean for the job market?
First , it means there are a lot of unemployed people looking for jobs (assumably) and not paying their mortgages.
Second, it means housing values will likely be stable for awhile before growing again (as those who continue to pay their mortgages hope).
Third, it means if you are planning to stay in California, I suggest you do some souls-searching as to why. Particularly if you are in an industry suffering a long-term slump (real estate, construction, etc.).
The Golden state is no longer golden. The lone star state (no state income tax) is looking better and better all the time. During the dust-bowl times of the last century, masses of people moved westward in search of jobs.
Today, a new migration is starting… under the call of “Eastward Ho.”