The prolonged U.S. housing bust is threatening to claim yet
another victim: the nascent recovery in the labor market.
New data released Tuesday showed just how bad the housing
market remains. Home prices in 20 major metropolitan areas fell 3.4% in October
from the previous year, according to the S&P/Case-Shiller Home Price Index.
It was the 13th consecutive year-to-year decline.
The job market, by contrast, has finally been showing signs
of improvement. The unemployment rate fell to 8.6% in November, the lowest
level in more than 2½ years, and recent weekly reports have suggested the trend
continued in December. Consumers also remained surprisingly upbeat, according
to a report released Tuesday. The Conference Board, a private research group,
said its index of consumer confidence jumped in December to its highest level
since April.
But now some economists fear the continued slump in housing
could short-circuit the recovery in jobs by making it harder for Americans to
relocate to find work.
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