Housing Market And Unemployment Picture Remain Bleak

Online, June 5, 2011 (Newswire.com) - Dennis Tubbergen is a financial advisor, advisor to financial advisors, author and radio talk show host. Tubbergen frequently gives his clients and readers updates on where the U.S. and global economies stand in his online blog and in his Moving Markets newsletter. On May 20, 2011 Tubbergen used his blog to give an update on the housing market and current unemployment situation in the U.S.

"This doesn't feel like a recovery, does it?" questions Tubbergen.

He refers to an article in The Washington Independent which states in part, "Despite assurances from government officials that the recession is gradually loosening its grip on the U.S., statistics released today by Zillow, Inc. paint a very different picture. Zillow is a real estate marketing site founded by former Microsoft executives that maintains a database of real estate information from around the country. The latest figures, from the first quarter of this year, show that the housing market continues to suffer ever-deepening consequences from the years of questionable lending practices that created the recession."

The article goes on to say that since the peak for values in 2006, average home values have fallen in every quarter since then. The bad news? While home values have tumbled downward for five years, values are dropping as quickly now as when the recession first began.

Zillow also reports the only housing market to see a rise in home values since 2010 is metropolitan Honolulu. Urban areas such as Atlanta, Detroit and Ocala (Florida) have seen droves of people leaving their once-stable cities.

So how is 2011 faring so far this year? Foreclosure rates are up and some 28.4 percent of those who own homes are upside down on their mortgages.

April saw no good news on the unemployment front, either. The Bureau of Labor Statistics released a report May 6, 2011 that stated the overall unemployment rate climbed back up to 9 percent after a short stint at a slightly lower 8.8 percent.

"I've maintained that the high level of debt on the public sector balance sheets and the private sector balance sheets will make this economic downturn prolonged," warns Tubbergen. "This report simply confirms that view."

Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in the USA Wealth Management Building in downtown Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog that can be viewed at www.dennistubbergen.com. His weekly talk show The Everything Financial Radio Show is simulcast on two Michigan metro stations and also airs to over 600,000 financial advisors, with recent podcasts available at www.everythingfinancialradio.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.