The housing industry watches jobs reports closely, because that's the best indicator of economic health to come.

And right now, the short-term outlook isn't rosy, but it isn't black either.

The Labor Department reported increased unemployment claims on Thursday, which would make May the seventh consecutive month for job losses. Out of 369 metropolitan areas, 328 reported higher unemployment rates, or lower employment, if you will.

I guess that means we've been in a job bubble and are now in a "correction."

According to the Conference Board, leading indicators of employment suggest more trouble in the job market in the months ahead resulting in one of the most turbulent, hard-to-read markets ever.

For example, Dallas-Fort Worth added the most jobs this year (+66,100) while Detroit lost the most jobs (-47,400.) Employment went up 2.2 percent in Dallas, while it dove 3.3 percent in Detroit.

The The National Association of Realtors expects job losses to be temporary, as companies clean house. The unemployment rate should average 5.4 percent this year and rise to 5.8 percent in 2009, but that's still well under the seven percent unemployment we had as recently as 2003.

What that means folks, is a mass migration is about to start as people who are out of work seek employment in greener pastures. That's good news for cities that are adding jobs that perhaps missed the housing bubble like Dallas.

And it's good news for buyers in more challenged areas, too. In Detroit, the people who still have jobs are buying homes. Realcomp, the Realtor's MLS for the Detroit metro, says home sales are up for the sixth month in a row in June year-over-year, (+13 percent.) Pending sales are also up by a whopping 32 percent.

One reason is that homes are competing with foreclosures, and the average price for a home has plummeted. The median sales price for a home in Detroit is $137,000, and median foreclosed homes are selling for about $40,000. Compare that to the median national sales price of $205,300, expected by year's end.

Whenever housing is affordable, sales tend to go up, so as the national median falls more than six percent in 2008, that could tip an increase in sales prices of as much as 4.3 percent in 2009. And those areas that are adding jobs are going to push sales back up even more.

That means location has never been more important, says the NAR.

Published: July 9, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.