Good News and OK News

So what do you want first? Ok Good news it is! (the What does this mean to me section is below)

New unemployment claims unexpectedly fell last week to the lowest level in three months, a sign the worst of the job cuts may be over. Fewer job losses reduce the chances that the recent increases in consumer spending and consumer confidence will wane in the near future

Some bad news:

Economists surveyed by Bloomberg News predict the payrolls report tomorrow may show unemployment rose to a 25-year high in April, indicating the labor market will be one of the last areas to rebound.

Over the past month the equity markets have shown the ability to maintain traction in the face of bad economic news and only the over-hyped H1N1 Virus scare (which I called) caused a brief selling stir. So even as the general economy struggles to regain its footing the financial markets seem be improving.

What does this mean to our local real estate market?

For Buyers: The better economic news should continue to help 401k's and IRA's improve. With that improvement to balance sheets it will be easier to make the necessary down payments and maybe even have a little left over for closing costs and new furniture- or the dreaded window treatments.

For sellers: Possibly better offers from sellers, more traffic through homes AND, if you have more of your own $$ from your portfolio you'll need less $$ from the sale of the current home so you can afford to concede a bit or price or closing costs.

For Realtors: You are still going to be working your butt off.