More Jobs and Better Pay Leads to More Buyer Demand

<article class="post-781714 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-781714"><span class="entry-date">August 24, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">More Jobs and Better Pay Leads to More Buyer 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=More+Jobs+and+Better+Pay+Leads+to+More+Buyer+Demand&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fmore-jobs-and-better-pay-leads-to-more-buyer-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="More Jobs and Better Pay Leads to More Buyer Demand Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230824-More-Jobs-and-Better-Pay-Leads-to-More-Buyer-Demand.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>There’s been talk about a recession for quite a while now. But the economy has been remarkably resilient. Why? One reason is employment and wages have stayed strong. Let’s look at the latest information on each one and why both are good news if you’re thinking about selling your house.</p>
<h4><strong>More Jobs Are Being Created</strong></h4>
<p>Instead of facing the job losses typical of any recession, the economy has been growing and adding jobs. <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" target="_blank">According</a> to the <em>Bureau of Labor Statistics</em> (BLS), <strong>187,000 jobs were created in July</strong>, which is up from the 185,000 created in June. That means more people are finding work. In fact, so many jobs are being added that the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">unemployment rate</a> is far lower than the long-term average of 5.7% (<em>see graph below</em>):</p>
<p><a href="https://www.simplifyingthemarket.com/content/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png"/></a></p>
<p>A low unemployment rate means that most people who want to work are finding jobs. When people have jobs, they have steady incomes – and that can help set them up to consider homeownership.</p>
<h4><strong>People Are Making More Money</strong></h4>
<p>And data also shows hourly <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" target="_blank">earnings</a> have been going up pretty steadily over the past few years (<em>see graph below</em>):</p>
<p><a href="https://www.simplifyingthemarket.com/content/images/20230822/20230824-Hourly-Earnings-Rise-4.4–from-last-year.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230822/20230824-Hourly-Earnings-Rise-4.4–from-last-year.png"/></a></p>
<p>When wages rise, people have more money that they could save or use toward buying a home. This increase in income helps offset some of the affordability challenges in the housing market today. Affordability depends on three main factors: wages, <a href="https://www.simplifyingthemarket.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a>, and <a href="https://www.simplifyingthemarket.com/2023/08/03/how-inflation-affects-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a>. With higher home prices and mortgage rates right now, <em>Builder Online</em> <a href="https://www.builderonline.com/data-analysis/employment-growth-cant-save-some-housing-markets-in-the-near-term_o" rel="noopener noreferrer" target="_blank">summarizes</a> how growing wages can help:</p>
<blockquote><p><em>“</em><strong><em>The housing market has been a beneficiary of the strong economy and labor market. </em></strong><em>Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”</em></p></blockquote>
<p>If you’re thinking about <a href="https://www.simplifyingthemarket.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling</a> your house, a strong job market, growing wages, and the resulting buyer demand is fantastic news. It means there’s a larger pool of potential buyers out there who are in a position to pursue their dreams of homeownership.</p>
<h3>Bottom Line</h3>
<p>With more jobs and rising wages creating eager <a href="https://www.simplifyingthemarket.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">buyers</a>, there’s a lot going in your favor. Reach out to a local real estate agent so you have someone who can guide you through the process of selling your house, from setting the right price to getting your home ready to show.</p>
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