From the AP:
Housing job cuts accelerate in quarter
Job cuts in the housing industry jumped in the first quarter and almost matched the number of cuts in all of 2006, an outplacement consultancy said Wednesday.
Challenger, Gray & Christmas reported that job cuts in housing, including real estate, construction and mortgage lending, soared 346 percent to 21,245 in the first quarter, compared with 4,764 job cuts in the same quarter last year. The first-quarter number barely trails the total number of job cuts in 2006 of 22,814. In 2005, the housing industry slashed only 13,656 jobs.
Construction led the job cuts with 13,958, compared with only 115 in the fourth quarter of 2006. Mortgage lending rose to 6,138 from 3,497 the previous year. Only the real estate sector – which includes commercial and residential real estate agencies – saw a decline in job cuts to 1,149 from 1,152.
“While many have predicted that the housing market has hit bottom, the situation seems only to worsen as home builders continue to report slumping orders,” said John A. Challenger, chief executive of the outplacement firm. “Now we are seeing the impact hit traditional as well as subprime mortgage lenders, as demand for loans declines and the number of foreclosures skyrocket.”
…
Meanwhile, home lenders that target high-risk borrowers are being battered as the subprime clients struggle to make monthly payments on exotic mortgages. More than two dozen subprime lenders have either closed their doors or gone bankrupt since late last year. Those that remain in business have drastically trimmed their staffs. Even larger national lenders have eliminated jobs in their subprime-mortgage divisions as the lenders tighten their standards.
“While many have predicted that the housing market has hit bottom”
They just don’t get it. We are closer to the top than a bottom. However, the angle off the cliff is certainly more pronounced.
Bc Bob,
Agreed, more shilling for and from the NAR.
One more thing to report in case anybody has not been following the business pages. Circuit City is separating from over 3000 of its employees and compusa is closing 2 store in NNJ. Smells like a recession to me folks!
Since many of our illegals are “employed” in housing-related jobs, I have to wonder what happens if their jobs go away. What will they do? Go home?
Probably not.
So where will they get money?