I’m off to SF again promoting our ETF 401(k) that we’ve helped to develop. While there, I will get a guage on real estate. Last time I was there (October) the headlines were reporting increasing layoffs in tech land. In fact Google was reported to have ordered a hiring freeze (see the rumors, ironically listed on a “Google search” HERE), dismissed many contract workers, and skipped employee bonuses.
Layoffs at Yahoo and other firms can only hurt real estate. As I opined in my previous article HERE, SF real estate is a unique beast. However, with it’s high number of singles and high real estate prices, any significant level of job losses would be devastating. A married couple could theoretically suffer a job loss and maybe not lose the house. A single person doesn’t have that back up – and with a $4,000/month mortgage, emergency savings can be eaten up quickly – if one even has emergency savings.
January is going to be terrible for layoffs in my opinion, as employers wait until after Christmas to dump people (they’re so kind!). I am referring to January as “Pink Slip January” in my column here. Last month, SF real estate showed slight cracking in prices – I’ll see if that is continuing.