Here’s some good news for homebuyers, the spring housing market has been surprisingly active this year. Despite having affordability challenges and a limited number of homes for sale, buyer demand is strong, and increasing as time progresses.
Interested buyer activity has increased over the last few months. Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, clearly demonstrates more people are out looking at homes than there were prior to the pandemic. There are active seekers searching for a new home, however, why are buyers so active at a time when mortgage rates are higher than last year? In this article, we will explore the various ways in which the current job market is positively influencing the housing market, benefiting both job seekers and homeowners alike.
The Job Market is Growing Stronger-Than-Expected
Despite inflation being high 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. The U.S. managed to recover from the Pandemic setbacks and produced opportunistic situations for individuals to be able to buy and sell homes.
Increased Job Opportunities Drive Housing Demand
The first and most evident way in which the thriving job market is impacting the housing market is through increased job opportunities. With more job openings available, there is a surge in demand for housing in areas where these opportunities arise. This heightened demand directly contributes to a boost in home sales and rental markets, resulting in a positive impact on the overall housing market.
Each month, the Bureau of Labor Statistics (BLS) reports how many new jobs were added to the U.S. job market. There were 88,000 more jobs created in April than in March. In fact, the April numbers exceeded expert projections. That’s a solid indicator the job market is growing.
Geographic Shifts in the Housing Market
Since the current job market is driving significant geographic shifts in the housing market, there is a higher chance that individuals can purchase, or refinance successfully. The reason is since the job market is healthy, new homebuyers are likely to push to make an investment in a new home. In certain regions or industries, individuals and families are relocating to areas that offer better employment prospects. This migration trend has led to increased housing demand in certain regions, often referred to as "hot" housing markets, while other areas may experience a decline in demand. As a result, some cities are experiencing rapid growth, while others are facing challenges related to depopulation and stagnant housing markets.
How Can You Thrive During This Time in the Housing Market?
As people secure better jobs and experience wage growth, they gain the financial stability necessary to afford homeownership. This trend leads to an increase in the number of potential buyers in the housing market, stimulating sales and promoting a healthy real estate sector. One of the first things you should do is work with a knowledgeable real estate agent and loan service agency. Collaborating with a skilled and experienced real estate agent and loan service agency can be your greatest ally in a competitive housing market. At Gold Financial Services, our team is trained to learn and develop knowledge of the local market, help you identify suitable properties, and guide you through the negotiation and offer process. Choose appropriate parties who understand your needs, communicate effectively, and have a record of success in the current market.
Ensure your finances are in order before entering the housing market. Save for a down payment, maintain a healthy credit score, and minimize other outstanding debts. Having a strong financial profile will position you as a reliable and attractive buyer to sellers.
Be flexible and act quickly in a competitive market, homes can sell rapidly. Stay flexible with your search criteria and be prepared to act swiftly when you find a home you like. Stay updated on new listings, attend open houses, and schedule viewings as soon as possible. Being proactive and responsive will give you an edge over other buyers.
Unemployment Reaches a Near All-Time Low
Ever since the Fed began dealing with 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. Since so many people are steadily employed and financially stable, the opportunity to buy a home is possible.
What Does This Mean for You?
If you’re thinking about selling your home this year, having many active buyers in the market is music to your ears. The reason is there’s an increased interest in your home as soon as you put it on the market, especially at a time when the number of homes for sale is so low.
Mortgage professionals can help you price your house appropriately, navigate the offers you’ll receive, negotiate effectively, and minimize your stress and hassle. The time for homebuyers to act is now and take advantage of how elusive the markets are for jobs and housing. As the job market continues to evolve, policymakers and stakeholders should address housing affordability concerns to ensure that individuals and families can access suitable housing options. Measures such as promoting affordable housing initiatives, encouraging diverse housing development, and investing in infrastructure can help create a more balanced and inclusive setting.
Here's the 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. Place your house on the market and get in on the action, reach out to Gold Financial Services, a locally trusted mortgage lender that has been serving the San Antonio community for over 25 years.
