Recent data from the ShowingTime Showing Index, which measures buyer activity during home tours, indicates that housing market activity this spring has been higher than pre-pandemic levels. Buyers are drawn to the market despite affordability issues and a limited supply of available homes.
This is likely evidence of pent-up demand among buyers ready to purchase a home and capitalize on low-interest rates. The graph below illustrates these trends:
Although current activity is lower than the market high of recent years, buyers are still out and about. There is a substantial level of interested buyers learning more about what’s available in the real estate market.
So why are buyers eager to buy property despite higher mortgage rates than those offered in previous years?
The Job Market Is Growing at a Stronger-Than-Expected Pace
The current job market is surprisingly strong – even with inflation, rising Fed Funds rate, and recession conversations. And it looks like it’s only going to get stronger (as seen in the graph below). This can be attributed largely to economic policies that continue to stimulate job growth.
The Bureau of Labor Statistics (BLS) releases monthly job reports on the state of the U.S. job market. According to their April report, 88,000 more jobs were added than in March – this number exceeds expectations and reflects the overall positive trend of a growing employment market.
Unemployment Is at a Near All-Time Low
The Federal Reserve’s inflation-fighting efforts have been met with positive results. Despite initial expectations of increasing unemployment, the rate has actually sunk to 3.4%, the lowest it’s been since 1969 (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
Selling a home in an active real estate market can be favorably advantageous to sellers. When there is increased demand for homes and a low inventory of homes for sale, prices tend to rise. For those looking to sell their house this year, the conditions are ideal.
A successful home sale begins with an experienced real estate agent who can help you price, navigate offers, negotiate effectively, and reduce stress during the process. Finding the right partner will set you up for success.
What We Say…
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 at debbie@sandianddebbiehomes.com.
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