Powerful Job Market Fuels Homebuyer Demand

<article class="post-693992 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-693992"><span class="entry-date">May 18, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Powerful Job Market Fuels Homebuyer Demand</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Powerful+Job+Market+Fuels+Homebuyer+Demand&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fpowerful-job-market-fuels-homebuyer-demand%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Powerful Job Market Fuels Homebuyer Demand Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230518-powerful-job-market-fuels-homebuyer-demand.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>The spring housing market has been surprisingly active this year. Even with <a href="https://www.simplifyingthemarket.com/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">affordability</a> challenges and a limited number of <a href="https://www.simplifyingthemarket.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">homes</a> for sale, buyer demand is strong, and getting stronger.</p>
<p>One way we know there are interested buyers right now is because showing traffic is up. <a href="https://www.showingtime.com/showingtime-showing-index/" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">Data</a> from the latest <em>ShowingTime Showing Index</em>, 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 (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230517/20230518-showing-traffic-above-pre-pandemic-levels.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230517/20230518-showing-traffic-above-pre-pandemic-levels.png"/></a></p>
<p>And though there’s less traffic than the buyer frenzy of the past couple of years, we’re not far off that pace. <strong>There are a lot of interested buyers checking out available homes right now.</strong></p>
<p>But why are buyers so active at a time when <a href="https://www.simplifyingthemarket.com/2023/05/10/the-impact-of-inflation-on-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">mortgage rates</a> are <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">higher</a> than they were just last year?</p>
<h4><strong>The Job Market Is Growing at a Stronger-Than-Expected Pace</strong></h4>
<p>With inflation still high, the <em>Federal Reserve</em> (the Fed) repeatedly hiking the Federal Funds Rate, and a lot of chatter in the media about a <a href="https://www.simplifyingthemarket.com/2023/05/02/a-recession-doesnt-equal-a-housing-crisis-2/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">recession</a>, 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 (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230517/20230518-job-market-continues-growing.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230517/20230518-job-market-continues-growing.png"/></a></p>
<p>Each month, the <em>Bureau of Labor Statistics</em> (BLS) <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">reports</a> 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 <a href="https://www.cnn.com/2023/05/05/business/april-jobs-report-final/index.html" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">projections</a>. That’s a solid indicator the job market is growing.</p>
<h4><strong>Unemployment Is at a Near All-Time Low</strong></h4>
<p>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.</p>
<p>In fact, what has happened is the unemployment rate has <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">dropped</a> to 3.4% – a 50-year low (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230517/20230518-unemployment-rate-drops-to-50-year-low.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230517/20230518-unemployment-rate-drops-to-50-year-low.png"/></a></p>
<p>With so many people steadily employed and financially stable right now, they’re still able to seriously consider buying a home.</p>
<h4><strong>What This Means for You</strong></h4>
<p>If you’re thinking about <a href="https://www.simplifyingthemarket.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">selling</a> 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.</p>
<p>To get started, your best resource is an experienced real estate agent. They can help you <a href="https://www.simplifyingthemarket.com/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">price your house</a> appropriately, navigate the offers you’ll receive, negotiate effectively, and minimize your stress and hassle.</p>
<h3>SBottom Line</h3>
<p>There are plenty of <a href="https://www.simplifyingthemarket.com/2023/05/03/buyer-activity-is-up-despite-higher-mortgage-rates/" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">buyers</a> 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, reach out to a trusted real estate agent.</p>
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