In April, I shared many articles about my views on our housing market amid the coronavirus pandemic. Three months later, not only has the pandemic in the U.S. not improved, we are now leading the world in the number of COVID-19 infections. During this unprecedented event, even the most renowned economists could not clearly indicate the future of our recovery. We were given all different shapes of economic recovery signals ranging from V-shaped, U-shaped, W-shaped, to potentially L-shaped. I have gathered the most important indicators for the U.S. housing market to help guide your real estate investing.
Our unemployment rate went from a 50-year low at 3.5% in Feb 2020 to an all-time high of 14.7% in April 2020. By June, the jobless rate had dropped to 11.1%. As significant as it may seem, over 75% of the job losses are temporary layoffs and furloughs. In California, FED-ED Extension provides up to 20 weeks of additional unemployment benefits through the Pandemic Unemployment Assistance Program which total up to 46 weeks of unemployment benefits. Many small business owners have reported difficulties in hiring back their employees due to additional CARES-ACT stimulus funds which provide $600 per week in addition to the state’s