Powerful Job Market Fuels Homebuyer Demand
The current spring housing market has experienced unexpected levels of activity this year. Despite affordability issues and a limited inventory of homes for sale, there is a significant and growing demand from prospective buyers.
One indicator of the increased interest in purchasing homes is the rise in showing traffic. The latest data from the ShowingTime Showing Index, which measures the number of buyers actively visiting properties, clearly indicates a higher volume of people touring homes compared to pre-pandemic levels (refer to the accompanying graph).
Despite mortgage rates being higher compared to the previous year, the current housing market continues to witness active buyer engagement. While the level of buyer activity may not be as intense as the past few years, it is still quite close to that level. This suggests that there is a significant number of interested buyers actively exploring available homes.
The question arises as to why buyers are remaining active despite the increase in mortgage rates. One possible explanation is the robust growth of the job market, which has surpassed expectations. Despite concerns about inflation, repeated increases in the Federal Funds Rate by the Federal Reserve, and discussions about a potential recession in the media, the job market has demonstrated remarkable strength. In fact, recent data (refer to the accompanying graph) indicates that the job market is not only resilient but also displaying signs of further improvement.
Every month, the Bureau of Labor Statistics (BLS) releases data on the number of new jobs added to the U.S. job market. The provided graph illustrates that in April, there were 88,000 more jobs created compared to March. This figure surpasses expert projections and serves as a strong indication of the job market's growth.
Contrary to expectations that the low unemployment rate observed in recent years would increase as the Federal Reserve addressed inflation concerns, the unemployment rate has actually declined. In fact, it has reached an impressive low of 3.4%, which is the lowest rate recorded in 50 years (refer to the accompanying graph).
onth, the Bureau of Labor Statistics (BLS) reports how many new jobs were added to the U.S. job market. The graph above shows 88,000 more jobs were created in April than in March. In fact, the April numbers beat expert projections. That’s a solid indicator the job market is growing.
Unemployment Is at a Near All-Time Low
Ever since the Fed began fighting inflation, many people expected the low unemployment rate we’ve seen over the past couple of years to rise – but that hasn’t happened.
In fact, what has happened is the unemployment rate has dropped to 3.4% – a 50-year low (see graph below):
If you are considering selling your house this year, the current market conditions with active buyers are highly favorable for you. Increased buyer interest can be expected when you list your home, particularly since the inventory of available homes is currently low.
To begin the selling process, it is recommended to consult with an experienced real estate agent. They can assist you in setting an appropriate price for your house, navigate incoming offers, negotiate effectively on your behalf, and minimize the stress and complications involved.
In conclusion, the current housing market has a significant pool of interested buyers who are actively searching for homes that meet their needs. This is largely due to the strength of the job market and the financial stability of many individuals, making homeownership a serious consideration for them. If you wish to take advantage of this favorable market and list your house, it would be beneficial to get in touch with a real estate professional to guide you through the process.