Strong Job Market Fuels Buyer Demand

June 28, 2023
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The spring real estate market has been a busy one in most areas. Even with mortgage rates higher this year as compared to last year, buyer demand continues to be strong and is getting stronger. According to data from Showing Time, which is a measure of buyers viewing homes, it shows that more buyers are actively touring homes this March compared to March in pre-pandemic years. Here is a closer look at why buyers are active these days.
 
Job Market Strength
 
With inflation still on the higher side, the Federal Reserve increasing the Federal Funds Rate and headlines discussing a potential recession, it is interesting to see how strong the job market is. Additionally, it is strengthening as well. According to the Bureau of Labor Statistics (BLS), there have been a noteworthy number of jobs added to the market. Specifically, there were 88,000 more jobs created this April than in March. Furthermore, the April numbers exceeded expert projections as well which all shows great movement in the direction of growth.
 
Unemployment Nearing All-Time Low
 
Another noteworthy statistic that goes along with new job growth is that of unemployment. According to BLS the unemployment rate is now at the lowest since May of 1969. The average rate from 1948 to 2023 was 5.7% and we are currently at 3.4%. So with so many people employed they are able to consider buying that home nowadays.
 
Impact on The Market
 
In the end this is excellent news especially for sellers in this market given the buyer activity. With the number of homes available for sale being lower still, sellers should anticipate strong interest in their homes listed for sale. If you are considering selling your home in the near future, feel free to reach out to me and let’s have a discussion on what you should expect for your home in your particular area.