Will job surge revive real estate?

The Globe reports today that Massachusetts added more jobs to its economy this April than in any other month since 1993. That is indeed good news for the Commonwealth's economy and invites speculation as to how much positive impact this job news will have on the state's real estate market. In my view, this news will help persuade many that the economy is rebounding. Certainly those who are newly hired will be in a better position although the many who still lack jobs or who are underemployed won't feel like it's much of a recovery. Notwithstanding all of this, the single biggest drag on the real estate market today is the outstanding indebtedness of those who purchase or refinanced when the market was at its peak in and around 2005. Individuals in those circumstances who owe more on their mortgages than their houses are worth are in no position to sell, refinance, or upgrade their housing. A large segment of the population and the housing stock has essentially been taken out of circulation.