Powerful Job Market Fuels Homebuyer Demand

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.

Recent Blog Posts

Six safety tips in the garden

With spring just around the corner, it's fun to start thinking about how you might revitalize your garden once the winter blues have been blown away.

Navigating Flooded Waters: Essential Steps for Dealing with Home Flooding

Facing a flooded home can be a daunting experience, but knowing what steps to take can help minimize damage and expedite recovery. Whether it's caused by heavy rains, … Read more

Rainy Days Ahead: Your Guide to Preparing for the Wet Weather Deluge!

As we brace ourselves for the rainy season, it's essential to equip ourselves with the knowledge and tools needed to navigate through the downpours. With days of rain … Read more

Essential Home Maintenance Tips for Southern California Living

Living in the beautiful region of Southern California comes with its perks—sunny weather, stunning landscapes, and a unique lifestyle. However, maintaining your home i… Read more

A Growing Family's Guide to Navigating Home

Your family is growing, and so are your needs when it comes to finding the perfect home. Whether you're expecting your first child or adding to your brood, finding a s… Read more

Finding Your Dream Home: A Guide for 55+ Homebuyers

Are you a seasoned individual looking for a new nest to call home? Whether you're downsizing, seeking a change of scenery, or simply ready for a new adventure, the jou… Read more

Unwind and De-Stress: Practical Tips for Managing Everyday Stress

In today's fast-paced world, stress seems like an inevitable companion in our lives. From work pressures to personal commitments, it's easy to feel overwhelmed. But wh… Read more

Navigating Retirement: Financial Tips and Lifestyle Choices for Individuals Over 50

As you approach the golden years of your life, there's a mix of anticipation and concern about retirement. It's a phase that demands careful planning and smart decisio… Read more

Finding Your Family Haven: A Realtor's Guide to Kid-Friendly Homes

Welcome to the world of parenthood, where every decision is made with your family's well-being in mind. As a seasoned realtor specializing in family homes, I understan… Read more

Work with Nelida

Providing clients with ultimate bespoke representation, customized marketing strategy, and a culture built on service. Excelling in exceeding expectations for buyers and sellers.