Overall in California the 200,000 increase in jobs in December was better than expected and the largest since September. The unemployment rate fell to 8.5 percent, the lowest level in nearly 2 years. The U.S. economy created 1.6 million jobs in 2011, an improvement from just less than a million jobs created in 2010.
This recent economic momentum points to a brighter year for the housing market. Mortgage rates are the lowest on record and credit conditions are slowly improving. However, the best predictor of the housing market is the labor market. And with employment finally picking up, an improved housing market will follow!