Isn’t unemployment too high right now to even consider buying a house? Unemployment levels are definitely something to consider when evaluating a home purchase. If unemployment rates are high, home buyers may be concerned that there’s a chance they could lose their job. And if that happens, they won’t be able to afford their mortgage anymore.
What are unemployment levels in your area? The media generally reports on NATIONAL unemployment rates, but as with everything in real estate, local numbers are more relevant than national ones. The Washington Post reported levels of unemployment in King County to be 6.9%, which aren’t fantastic but are definitely better than a lot of other areas in the country.
How replaceable are you? Even if you lived in Lewis County where they’ve been seeing unemployment rates of about 13%, it may not be as relevant to you if you’re in a very niche or specialized position or field. However, if you work in a position where you could be easily replaced, then you may want to think twice.
Do you have savings to fall back on? Regardless of what unemployment rates are or what type of position you hold, EVERYONE should have a safety net. General rule of thumb is 3-6 months of expenses in your savings, depending on how affected you are by the afformentioned situations.
There’s a lot to consider when purchasing a home. Don’t make a decision without getting educated first! Go to our Calendar/Reservations page and sign up for one of our free First Time Home Buyer workshops.
