Buying your first home is a thrilling milestone that brings a mix of excitement and questions. As a first-time homebuyer, you're stepping into a world of possibilities and a few complexities. To
Powerful Job Market Fuels Homebuyer Demand Currently.
Dated: May 23 2023
Views: 50
Powerful Job Market Fuels Homebuyer Demand Currently.
The spring housing market has been surprisingly active this year. Even with affordability challenges and a limited number of homes for sale, buyer demand is strong and getting stronger.
One way we know there are interested buyers right now is because showing traffic is up. Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, makes it clear more people are out looking at homes than there were prior to the pandemic (see graph below):
And though there’s less traffic than the buyer frenzy of the past couple of years, we’re not far off that pace. There are a lot of interested buyers checking out available homes right now.
But why are buyers so active at a time when mortgage rates are higher than they were just last year?
The Job Market Is Growing at a Stronger-Than-Expected Pace
With inflation still high, the Federal Reserve (the Fed) repeatedly hiking the Federal Funds Rate, and a lot of chatter in the media about a recession, it might surprise you just how strong today’s job market is. What might be even more surprising is the fact that it appears to be getting stronger (see graph below):
Each month, 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):
With so many people steadily employed and financially stable right now, they’re still able to seriously consider buying a home.
What This Means for You
If you’re thinking about selling your house this year, a market with active buyers is music to your ears. That’s because there’ll be increased interest in your home when you put it on the market, especially at a time when the number of homes for sale is so low.
To get started, your best resource is an experienced real estate agent. They can help you price your house appropriately, navigate the offers you’ll receive, negotiate effectively, and minimize your stress and hassle.
Bottom Line
There are plenty of buyers out there right now trying to find a home that fits their needs. That’s because the job market is strong, and many people have the stable income needed to seriously consider homeownership. To put your house on the market and get in on the action, let’s connect.
Laron Ward
Laron Ward, a professional realtor with a passion for creativity and community, has consistently prioritized these values both in his personal and professional life. From an early age, Laron was fortu....
Latest Blog Posts
In the ever-evolving world of real estate, market conditions can sway the balance of power between buyers and sellers. In a buyer's market, where housing inventory surpasses demand, buyers
Selling your home in a buyer's market can be a daunting task, but with the right strategies and mindset, you can still achieve a successful sale. In a buyer's market, there are more homes for sale
As parents, we understand the financial challenges that come with supporting our children through their college years. From tuition fees to living expenses, college can put a significant strain on
Austin Board of REALTORS® Copyright ©2023 All rights reserved.
Information provided Courtesy of San Antonio Board of Realtors. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is believed to be accurate but not guaranteed. Provided courtesy of the San Antonio Board of Realtors. Copyright 2023 San Antonio Board of Realtors, All Rights Reserved. Data last updated September 30, 2023 4:22 PM
Central Texas MLS | Four Rivers Association of REALTORS® All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties
