Here’s what buyers and sellers need to know about the state of our market.
Today, I want to address how the job market drives demand for homebuyers. Despite affordability challenges and a limited inventory of homes for sale, the spring housing market has surprisingly shown significant activity this year. Buyer demand is robust and continually growing. One way we can determine the presence of interested buyers is through increased showing traffic.
Data from the latest Showing Time Showing Index, which measures the number of buyers actively visiting homes, indicates that more people are currently exploring available homes compared to pre-pandemic levels. The graph represents showing activity during the month of March. Although the current level of activity is slightly lower than the buyer frenzy observed in the past couple of years, it remains quite close.
“Despite higher mortgage rates, our market remains strong. ”
At present, there are a substantial number of prospective buyers examining available homes. But what explains this high level of activity when mortgage rates are higher than they were just a year ago? There are a few reasons. Firstly, the job market is experiencing stronger-than-expected growth. Due to persistent inflation, the Federal Reserve has been raising the federal funds rate, and concerns about a recession have been prevalent in the media.
The strength of today’s job market may come as a surprise. Even more astonishing is the indication that it is growing stronger, as depicted in the graph. The Bureau of Labor Statistics reports monthly on the number of new jobs added to the U.S. job market. According to the graph, 88,000 more jobs were created in April compared to March.
In fact, the April numbers surpassed expert projections, providing solid evidence of job market growth. Secondly, unemployment is currently almost at an all-time low. Many people expected the low unemployment rate observed in the past couple of years to rise, but that has not been the case. In fact, the unemployment rate has dropped to 3.4%, the lowest in 50 years.
With a large portion of the population gainfully employed and financially secure, many individuals are seriously considering homeownership. So, if you are contemplating selling your house this year, a market with active buyers is certainly advantageous. When you list your home, there will be increased interest, particularly since the inventory of available homes is low.
To get started, your best resource is an experienced real estate agent. They can assist you in pricing your home appropriately, navigating the offers you receive, negotiating effectively, and minimizing stress and hassle. Call or email me with any questions. I look forward to hearing from you!
