SALINAS, Calif. -- Capital One Layoffs May Affect Housing Market. The layoff announcement is expected to hit the already slow housing market, hard.
Realtor Ruben Dominguez says Capital One workers who own a home and paying a mortgage are probably going to take the hardest hit. "Anytime a community gets hit with 800 people living in the community being laid off, it's going to have an economic impact," said Dominguez.
We're told families whose main income comes from Capital One pay stubbs will be affected the most. "Unless they find a job within the next couple 3 to 4 months probably they're going to be in a hardship situation definitely in which will you know lead to most likely foreclosure or hopefully they'll choose to go short sale," says Dominguez.
It's no secret the housing market is already struggling because of the recession and slow recovery. Now hundreds of high paying jobs are leaving the biggest city on the Central Coast. Last year hundreds people in Monterey County put their homes on the short sale list. Then there's the trickle down effect. Fewer sold houses and more foreclosures are going to slow businesses like construction.
"A declining market in a slow market affects title insurance, it affects contractors, it affects labor, it affects painters, it affects hardware stores. I mean our industry affects a variety of industries," said Dominguez.
Realtors recommend selling your home on short sale instead of letting the bank foreclose on it.
