Tuesday, August 29, 2023 / by Va Marketing
More Jobs and Better Pay Leads to More Buyer Demand
The talk of an impending recession has been circulating for some time now, yet the economy has displayed impressive resilience. One of the contributing factors is the consistent strength in employment and wages. Let's delve into the most recent data for both aspects and understand why these trends are positive news if you're contemplating selling your home.
More Job Opportunities Are Emerging:
In contrast to the job losses commonly associated with recessions, the economy has continued to expand and generate employment opportunities. According to the Bureau of Labor Statistics (BLS), July witnessed the creation of 187,000 jobs, following the addition of 185,000 jobs in June. This upward trajectory indicates a growing workforce. Notably, the unemployment rate remains notably lower than the long-term average of 5.7%, as indicated in the graph below:
A lower unemployment rate signifies that a substantial portion of individuals seeking employment are successfully finding jobs. With steady jobs come stable incomes, a factor that can significantly contribute to potential homebuyers considering homeownership.
Increasing Earnings:
Data also highlights a consistent rise in hourly earnings over the past few years, as shown in the graph below:
Higher wages translate to increased disposable income, which individuals can choose to save or allocate towards purchasing a home. This upward trend in income helps mitigate some of the affordability challenges currently experienced in the housing market. Affordability hinges on three core elements: wages, home prices, and mortgage rates. Given the elevated home prices and mortgage rates at present, the growth in wages plays a crucial role. In this context, Builder Online succinctly summarizes the impact:
“The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”
If you're contemplating selling your home, the robust job market, rising wages, and the subsequent increase in buyer demand are all highly favorable. This environment implies a larger pool of prospective buyers who are financially equipped to pursue homeownership.
Bottom Line:
With the combination of increased job opportunities and growing wages driving a heightened interest among potential buyers, the current landscape is in your favor. Let's connect so I can provide expert guidance throughout the process of selling your home, from setting the appropriate price to preparing your property for showcasing.
