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Mortgage Activity Downturn Leads to Layoffs

FINANCE: Banks Help Affected Workers In Their Job Searches

Mike Allen, SAN DIEGO BUSINESS JOURNAL

Monday, September 2, 2013

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The surge of layoffs in finance contrasts to a generally recovering local housing market in recent years evidenced by higher sales and increased prices, said Kelly Cunningham, chief economist for National University System Institute for Policy Research.During the recession, San Diego lost some 13,000 jobs in financial services, yet it’s added about 3,900 jobs in this sector since 2010, mostly fueled by an improving real estate market, Cunningham said.

However, because so many home sales involve cash investors, lenders may be benefiting less from the uptick than other players in real estate, he said.

“The San Diego housing market is revving up, but it’s not organic, and much of it is investor-driven,” Cunningham said.